What Is The Play To Earn Economic – update 2021

New business models and virtual economy coming soon  “Blockchain Game” and business model “Play to Earn” are two of the next major developments in the gaming industry. electronic

The  Play-to-Earn  (play for money) business model is the latest development in the game industry. It is a business model that includes open economy concept and provides financial benefitsto all players, who add value by contributing to the game world.

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Blockchain is the next big step for the gaming industry, as users will demand more control. Consumers are king, and those who empower consumers will reap the benefits. This will come with brand new business models, revenue streams, and in-game economies.

play to earn
play to earn – the newear

These virtual economies will empower consumers by adding real-world value to their online entertainment through blockchain-powered applications.

And before we go into more details, as always” This is for informational purposes only and should not be considered investment advice. If you get value in this article, please like, share the page to help the page continue to grow” Sincerely thank you!!!

Summary of the game economy

Business models around video games have evolved as technology becomes more accessible to users. If before in the late seventies and early eighties, people played their games on arcade machines with coins bought from local game center owners or 9x generation like us. I already know the net shop, Save a lot of money just to buy hours of play with your close friends with the empire, haflife, raids of all kinds…

Nowadays, we play games on our smartphones while traveling by public transport or at leisure. When we want a deeper experience, we play games on personal computers. or dedicated PS4 at cyber game…  Regardless of the platform, there are business models suitable for all players (Selling copyrights, weapons, skins, tournaments…)

Free-to-play game models are no longer crap

For example: LOL (league of legends) is a free game to play, but to have a better champion skin, stand out from other players, you have to spend money to buy them.

Some of the biggest games on the market are actually available for free. Last year, Honor of King alone  reachedrevenue $2.45 billion . Among the biggest games on the market are titles like League of Legends ($1.75 billion), Peacekeeper Elite ($2.32 billion), Roblox $2.29 billion, and more, all of which generated million-dollar revenue for its parent companies. ( according to the: https://tekdeeps.com/if-games-dominated-digital-sales-in-2020/)

play to earn – top 10 free to play titles 2020

Basically all are available for free. However, each developer has their own ways of getting users to pay for them.

It’s no exaggeration to say that the free-to-play games business model is exploding right now. Games like League of Legends and Dota 2 are often mentioned in the mainstream media as part of esports tournaments, and their million-dollar business is related.

This just shows that the free-to-play business model has matured and that the developers have learned the art of making money from free games.

3. So why does it make sense to say “Play to Earn”?

Over the past few years we have seen many free games shut down their servers. When the number of players dwindles and the cost of running the server is more than what the game publisher can handle, the servers that operate the game are often closed.

Items purchased by players, plowed, and everything they once “owned” will disappear as soon as the game server stops working. For example, the games Evolve, Orcs Must Die! Unchained, Blacklight Retribution, Marvel Heroes, Paragon and The Mighty Quest For Epic Loot, Swordsmanship 2,..

The idea of ​​ownership  in the game industry is an illusion. Consumers only purchase licenses to use digitally distributed games, downloadable content, and digital items. The rightful owner will always be the company behind the game.

Games have become a service and no longer a product that consumers can own. Gamers pump money into a game, but never get any value back when the game is out of hot or closed.

Digital distribution is a farce. Everyone pays full price to play a copy of the game they don’t own. The real feeling of owning a product will never get old. Ownership is real and no one can take it away even the game publishers.

With blockchain technology, we can apply the same rules to digital assets. Gamers can actually own digital items. Developers can tokenize each digital asset on the blockchain, which means everyone has the ability to track its availability, rarity, and ownership history. Based on its usability, it will inevitably have a certain value that will decrease or increase over time.

play to earn – market place

For example, developers can tokenize a sword from an action game or a cool car from a racing game, and players can store these ownership contracts in a wallet owned by the player. owned. In addition, players can freely trade their items or give them to friends. On top of that, users can freely transfer digital ownership, but there is always only one person who has actual ownership of a certain item belonging to a certain player.

4. Should “Play To Earn” be incorporated in “Free Games”?

The  Play To Earn  business model has many similarities with the  Play Free to play model. Often a Play To Earn game also uses mechanics seen in free-to-play titles. However,  Play To Earn  also allows players to earn or earn valuable digital assets.

Basically, Play to Earn are titles that give players ownership of in-game assets and allow them to increase their value by actively participating in the game. Besides, by participating in the in-game economy, players are creating value for other players and developers. In return, they are rewarded with in-game assets. These digital assets can be anything ranging from cryptocurrencies to in-game resources that are  crypted on the blockchain. That is why the Play To Earn business model is very suitable for  blockchain games .

In the Play to Earn business model, developers reward players for putting time and effort into their game. For example, in Axie Infinity, players earn Small Love Potions (SLP). Players need these tokens to create new Axies, but they can also sell tokens to other players on the open market.

5. “Free Play to Earn” business model

As noted above, not all blockchain games under the  Play to Earn  model are free to play. Currently, Axie Infinity, which is often described as a real money game, still requires players to first purchase three Axes before starting to play.

This means that gamers interested in the game need to pay a few dollars first, before they can try it. Players who don’t like Axie Infinity (you’re an outsider!) can still sell their Axie in the market, maybe even make a profit.

So the most successful blockchain games will be the ones that combine the  Play to Earn process with the monetization of the  Play to Earn business model. New players do not need to pay to try a game. Only when they join the community and learn more about the game will they potentially make a good investment and increase the experience and fun of playing. Let’s call this “Free Play for Money”, or F2P2E.

An example of this business model is the card game Gods Unchained. Players are free to participate in the game and have fun. While playing, they will unlock ‘simple cards’. They can create value when they have two simple cards and some flux, an in-game currency earned by winning competitive games. Players can merge these two tokens into one player-owned, tradable card stored in their blockchain wallet. Yes, they can also sell these tokens on the public market.

6. What happens when blockchain game servers stop working?

One of the easiest questions to ask is  “what happens when game companies close the servers of their games. Suddenly you have these tokens in your wallet that cannot be traded”? It is a big problem, however, with  blockchain, we have solutions for that.

The first will be blockchain tokens that can be pegged to multiple assets from a variety of games so called INTERACTIVE. Blockchain game startup Enjin is even building its entire business  around this concept.

Interoperability is understood as a token for a gun in one game, be it a card or a sports car in the other. This means that gamers can use a game item in multiple games. It’s a form of interoperability. Even if a game is shut down, items can still be used in other games through a mechanism we call  Crosschain

The second solution also involves blockchain technology. What if we don’t need a centralized server, but run the game entirely on a bunch of local files and a block chain. This means that the blockchain verifies all transactions, movements, and ownership of assets. For example,  Nine Chronicles  is an upcoming role-playing game built around this concept.

Another example is  Xaya . This is a blockchain solution for games built on blockchain technology. Blockchain stores every movement, action and transaction. The Xaya blockchain is much cheaper for transactions and enables so-called ‘Game Channels’ that enable fast-paced gaming on the blockchain.

This could be something favorable for action games, for example. Isles of War, Taurion and  Soccer Manager Elite are just some examples of games coming to the Xaya blockchain. In these examples there is no centralized server. It is the users who keep the network running. As long as there are at least three users, the network should be able to function.

7. User benefits when participating in the “Play to Earn” economy

Developing a video game takes a lot of time and resources. These games are created by game publishers. However, the benefit of the Play to Earn business model is that a gamer can always generate some marketable value. Even if players join for free or for a fee, these items players buy, or play out for rewards can always be resold as real business.

Game publishers like Fortnite and League of Legends are making billions of dollars. Players spend money and throw their time into a bottomless pit. When they stop playing these games, their wallet will be empty.

The opposite of Play to Earn will change this. All obtained items represent a certain value. This means that gamers will always be able to earn money as soon as they leave the game. For example Every card in Sorare can be sold and so can every Axie in your wallet.

8. Ending

The development of blockchain today has opened up more opportunities and new forms for users and specifically players when games are not only entertainment but also become a small part of the economy. open economy. The benefits are now not only focused on the publisher’s side anymore, but instead, players are rewarded with worthy rewards when it is themselves and the community who decide the success of a game.

See you in upcoming articles, you can join the Doan Gia Capital community to update the latest information!!!

Best regards !!!

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