P2E Games Might Need To Review Their Propositions

September 26th 2022 new story

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Blockchain gaming is one of the most exciting additions to the ecosystem, and with the constant buzz about the metaverse, one would expect that this sector would be topping the landscape by now. Play-to-earn gaming coins might not be living up to expectations. Early gaming coins recorded a massive user base at the beginning. Axie and Sandbox recorded millions of active users, but numbers are beginning to drop.

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The crypto landscape has seen massive adoption over the years, with several new projects being introduced alongside interesting features, including NFTs, Privacy tokens, DeFi, multichain system, GameFi, and many others. Blockchain gaming is one of the most exciting of these additions, and with the constant buzz about the metaverse, one would expect that this sector would be topping the landscape by now. However, the reverse is the case, and play-to-earn gaming coins might not be living up to expectations. 

Looking at the history of play-to-earn, the sector started pretty well, and early gaming coins recorded a massive user base at the beginning. Networks like Axie and Sandbox recorded millions of active users. Axie started with around 2 million users, and Sandbox did the same. 

The present numbers, however, are beginning to follow a downward trend. Sandbox is currently hovering around 2,000 daily users, and Axie, the most prominent GameFi system, is said to have around 300k daily users. The trajectory for most of the other gaming coins is the same, daily users reduce by the day, and many wonder if GameFi would remain in the years to come. 

P2E Gaming: The value proposition 

The unique primary offering from GameFi is that it commercializes Gaming and introduces finance into gameplay. It infuses the concept of rewarding gamers through cryptocurrencies, NFTs, and other in-game assets that might be of value to gamers. As much as that might seem interesting to many, the current blockchain games are not exactly providing the “Gaming” experience. While the system aims to provide earning means for gamers, P2E games focus more on finance than gaming experiences.

The GamePLAY In “Play-To-Earn” Seems To Be Missing

One of the arguments here is that play-to-earn games lack the fun that keeps gamers hooked to the system. And this fun is one approach that has helped the traditional gaming system stand the test of time. Earning is nice too, but most hardcore gamers actually care more about the fun than they do about the rewards. 

To dominate traditional games, p2e games must offer the challenge that most of their current systems today do not have. Traditional video games offer intrinsic and immersive gaming experiences that mostly come with the challenge, higher difficulty level, and fulfilment of putting in the work to win these games. 

Game developers must address the unique motivational elements that can draw non-crypto enthusiasts into the P2E arena, not with offers or providing rewards but by developing games that can satisfy the expectations of traditional players. Or, to put it more simply, make their games more enjoyable and more challenging.

The commercialization of fun ultimately alters the nature of Gaming, giving birth to unresolved design issues for the industry. Gamers do not seem to enjoy their experiences, and most are beginning to see fewer reasons to keep playing. Users want to see GameFi adoptions where the fun and gaming experiences aren’t less prioritized than rewards. 

Payment sustainability

Another pressing concern with P2E games is that these systems don’t have sustainable ways of rewarding users. When it comes to p2e games, the idea is to play them and earn money. However, the money given as a reward is also generated from the players playing these games. And this approach has made many compare the system to a Ponzi. 

In most cases, new players pump money into the system when they buy NFTs, giving them access to play the games. Other popular models include membership plans and advertisements. Ultimately, most of the revenues used in rewarding existing players are gotten from other players. 

Sustainability is a factor of concern for p2e games. The market becomes less saturated when the network gets fewer users and the buzz fades. As everyone becomes aware that the model cannot continue, fewer and fewer individuals purchase NFTs or membership plans for the games. When this occurs, a significant number of payouts and almost zero inflows cause the balance to fall until it reaches zero.

Lastly 

The concept of P2E games is fascinating. And one with the potential to revolutionize the gaming landscape. However, prioritizing financial rewards over fun makes it bleak. And existing blockchain games might need to revisit their propositions. Although this is only the beginning for GameFi. Users want to see the sector improve with better gaming systems that can develop great fun-to-play games with NFT technology. 

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