In any economy, few parameters are considered that show which elements are giving more revenue to the country, whether it’s Agriculture, Industry, IT Services, and others. In recent times, it has been noticed that the Play-to-Earn game has taken a sharp rise in the economy as this business model succeeded in gaining $300 billion. Likewise, many experts are predicting that the growth of P2E will be in exponential form, and undoubtedly, it will give a boom to the economy.
In the early days, most of the countries followed the closed economy, but with time and advancement of technology, an open economy stepped in, and most of the countries are following this path. In this segment, Play-to-Earn act as a gateway in an open economy that gives a huge opportunity to gamers worldwide to earn money while playing. This new business model (P2E game) meant a lot for the economy, and this article covers the same.
Play-to-Earn Game
P2E game is a new concept in the gaming industry that enables the players to win in-game assets either by rewards or others by completing the task. The best part is; the earned digital assets in the form of a token can be transferred to real currency. Now, you may wonder how? Well, the entire system is based on blockchain technology, even the tokens (NFT), so you can easily earn money.
In past decades, the game was centralized where the developers had full access to the game, and they enabled the players to invest money to get additional features of a game. Furthermore, if any new game is launched, then the gamer has to invest money to buy the game. All the past examples clearly show that the gamers had to spend money to play a game, and in return, they didn’t get anything physically (only game rewards accessed in-game).
With time, things have changed, and the pace was given by the advanced technology that enabled people to earn money while playing. P2E games are free to download and are available on an open-source platform that can be accessed by anyone.
Business Model of P2E
In the gaming industry, there is a definite business model, and the same case applies to play-to-earn games. The entire network is based on blockchain technology, and this is the new concept in the digital world. This technology has ruled almost every sector and thereafter stepped into the gaming world. Likewise, NFT (Non-Fungible Token) is also an essential element in P2E games as it gives ownership of your digital assets that may comprise anything such as clothes, avatars, land, and many more.
Once you have earned enough collectibles through the game, then you can sell them in the game or in the NFT marketplace to earn money. The best part of the P2E game is the decentralized form, where game ownership, government rules, company policies do not matter. You can directly sell your game resources in the digital world without the interference of a third party. Likewise, P2E games also restrict the monopoly of the developers, and while playing the game, you can also create your own game and sell it on the gaming platform.
Let us understand the business model of P2E with an example; Axie Infinity is the most popular game in this segment that gave good profit to the gamers. The game concept is very simple, just get one Axie (animal), breed it, and allow the Axie to battle with others. The winning team will get rewards in the form of tokens. To be more precise, this game gives you two forms of a token, AXS, and SLP. You have to use them in the game to breed Axie and to purchase the land, respectively.
While playing the Axie Infinity game, many people have earned a huge amount, and if you go for an average earning, it is $2000/month, and the value increases exponentially as per the gameplay and gaming skill. Well, Axie Infinity is just an example that shows the impact of the P2E game in the economy; many more games are there on this platform, such as Gods Unchained, Sandbox, Illuvium, and many more.
Landing of P2E Games in Metaverse
Metaverse is an amazing concept that gives a 3D virtual environment to people through advanced utilities (AR, VR, and Blockchain technology). The prime aim is to give a highly advanced digital platform to the users so that they can create their own world. In this world, you will get everything needed for fun and entertainment, including games.
P2E games are also heading into the Metaverse as many gaming companies are working on it. Furthermore, gambling companies are also in the race, and they choose the NFT as an ideal way for trading. Once Metaverse is in full execution, then it will boom the economy as more people will shift to this new universe to get a lot of fun and entertainment. You can see the first steps made by Gclub casino, which heavily integrates with the crypto and AR industries.
Metaverse, together with P2E games, have given a vision to the gaming and IT industries to earn huge profit, and currently, they are in the race to blend both of them in no time. But the execution of Metaverse is not an easy job, especially in the gaming zone, as multiple factors are responsible for that. The experts are hoping that in the coming years, users will get access to P2E games in Metaverse.
Bottom Line
P2E games changed the perspective of the gaming industry, and the current growth rate also points that it is giving a hike in the economy as P2E game is a billion dollars business, and soon it will come in trillion dollars. The gaming industry is very big, and most of the gaming companies are making taking the shed of blockchain technology to design crypto games intending to generate more revenue and allow the players to earn while playing.
Hence, the P2E game is a landmark in the modern-day, and the boom of the same in the economy gives more value to such games.
