The current play-to-earn gaming model is not sustainable and is poised to transition to a “play-and-earn” model, where graphics and gameplay will take precedence over financial incentives for players, experts said at a conference for Indian game developers.
Photo credit: India Game Developer Conference
The primary objective of the emerging model will be to build games that are fun to play, where players will be incentivized for their skills and the number of hours they spend on the game.
“I think Axie Infinity has played a very important role in the play-to-earn gaming space and has given a lot of food for thought to developers and builders in this space,” Abhishek Anand, business head of IndiGG told Tech in Asia. “You cannot create a sustainable economy where players just look to capture value without creating any value.”
Value creation in a game happens by building the network effect, where the addition of new players leads to increased competition, variety in online matches, and more people buying and trading items using in-game marketplaces.
Currently, play-to-earn games like Axie Infinity and Pegaxy are facing a severe inflation problem, where most players cash out their earnings as a daily wage and don’t use their tokens productively within the game.
See also: Is Axie Infinity too big to fail?
While the economics for a Web2 game is designed only for the players, Web3 games incentivize producers, consumers, and investors as well, said Siddharth Menon, co-founder of crypto exchange WazirX.
Meanwhile, experts including Stefan Colins, metaverse partnerships director at Venly, addressed the possibility of interoperability between wallets on different blockchains in the near future.
Editing by Arpit Nayak
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