Opportunities of play-to-earn blockchain games for businesses

Historically, the video game industry has always operated on a pay-to-play model previously driven by arcades and quarter slots and now by must-buy gaming platforms. So when a new model was introduced in the domain that gave players a chance to earn by playing games, it was destined to bring a paradigm shift in the industry.

Introduced as part of the web3 momentum, the play-to-earn-games model works on the blockchain to give players a way to earn through cryptocurrency or non-slingable tokens. The idea behind play-to-earn games is simple. Instead of buying a game, the model pays you to play it with a built-in incentive architecture that rewards your time with items that have verifiable ownership, which can then be traded, sold or bought.

While still in its infancy, the play-to-earn blockchain gaming business model is expected to grow at a CAGR of 21.3% to a market size of $3618.4 million by 2028. Noting the meteoric rise in the future of the play-to-earn industry, it has become critical for blockchain and gaming enthusiasts to know about the phenomenon. In this article, we’re going to dive into the model in detail, touching on the basics of how it works, the benefits, the different models, and finally, how you can start your play-to-earn crypto gaming business.

What are play-to-earn games?

Play-to-earn blockchain games business model allows the players to earn crypto income by playing games. Although each game is different, the reward mechanism is usually the same – staking, trading NFT items or farming with the game’s cryptocurrency. The players can then use these assets to buy cryptocurrency or NFTs in the decentralized world.

Some examples of play-to-earn game business model can be seen in games like Splinterlands, Farmers World, Upland and Gameta etc.

The mechanics of play-to-earn blockchain games

Understanding the different elements of p2e games helps define how the model works – a piece of information that contributes to a successful blockchain game development process. Here are the various factors that come into play in the development of the model.

Web3 game

The critical part of any play-to-earn games business model lies in having a game that works in the web3 or metaverse. Currently, three types of games p2e game developers are choosing to enter the space –

Metaverse Games – metaverse is a virtual space where the players can interact with each other and create, own and monetize their virtual assets. Some of the popular metaverse p2e games include Alien Worlds and Decentraland.NFT Trading Cards – NFT cards are virtual collectibles that run on limited supplies just like physical trading cards. Their value increases based on their utility, scarcity and ownership. Some famous trading cards p2e games include – Sorare and Gods Unchained. Role-playing games – the last play-to-earn blockchain game business model that developers typically espouse are those where the players get to control the in-game characters with unique skills, features and weapons. The players in turn have to complete the tasks to progress in the game and get rewards. Some well-known RPG play-to-earn crypto games include Blankos Block Party and Axie Infinity.

Cryptocurrency

The next part of the play-to-earn business model lies in having cryptocurrencies attached to the play-to-earn games. Game developers usually have two choices – to build a game-specific cryptocurrency or use the existing ones. For example, in the case of building a cryptocurrency to be used in the game, while it is beneficial in the long term, in the short term, it is not profitable.

NFT

Another critical element of the play-to-earn model lies in having NFTs in the game. The mechanics of play-to-earn games run on NFTs that can be bought, owned, traded and even exchanged or sold on NFT exchanges. They are the primary motivators for the gamers to invest their time and money in a game.

Smart contracts

Smart contracts are an important behind-the-scenes element of the play-to-earn games business model. The way smart contracts work in play-to-earn crypto games is pretty simple. Every time a player buys an NFT or in-game element, its ownership is transferred to their name through a smart contract, which then serves as proof of authenticity and traceability.

Integration with crypto exchanges

Connecting your play-to-earn mobile game to crypto exchanges and NFT marketplaces can give you an edge in the growing p2e space. Integrating it will make it easy for your players to buy, sell or trade their cryptocurrency and in-game NFTs. The first step in achieving this partnership is to get your NFT listed on OpenSea or Coinbase.

Now that we’ve looked at what p2e gaming stands for and the mechanics behind the play-to-earn-money model, the question is, why should you read into a space that’s still in its infancy? The answer to this is that while most play-to-earn models are in a growing stage, the benefits they bring to developers and gamers are setting the entire blockchain gaming industry up for success.

Benefits of play-to-earn games for developers and studios

Play-to-earn crypto gaming industry is on the way to success and virality because of its long-term benefits for game developers. The game studio can launch an MVP to introduce the concept, tokens and NFT – elements that will get initial investments from players. Because the players will own the blockchain assets, they will be interested in investing.

Additionally, developers can build an immersive, unique experience for the players, rewarding them with high engagement and retention. Finally, on the monetary front, studios get the option to earn commission on the sale, and trade NFTs and tokens in-game, leading to the long-term success of the play-to-earn mobile gaming platform.

Benefits of play-to-earn games for gamers

Historically, the gaming space has followed a closed model in which players spend money to play a game or buy in-game assets, but the moment they finish the game, or the game to some reason is closed, all those expenses are going to waste.

Play-to-earn crypto games work so that the players completely own the in-game elements. This means that assets the players unlock can be used to trade or earn through marketplaces even after they stop playing the game. Thus, play-to-earn crypto games serve as a means of passive income for the players.

These benefits of play-to-earn crypto games are enough to shape the future of the domain as one that is profitable, supports virality and creates a rewarding experience for players. On that note, let’s take a look at the current state of the play-to-earn blockchain gaming industry.

How does Appinventiv help set up a play-to-earn business model?

In our experience as a play-to-earn game development company, we have identified that game studios, developers and partners work like business partners. The players hold in-game assets for trading, increasing the assets’ value (and developers’ profits). The game developers in turn give them a rewarding experience where they can collaborate with other players and get a passive source of income. The way to achieve this lies in creating a good play-to-earn blockchain game business model. Here’s how we achieve this as part of our blockchain game development services.

A. Finalize the different playing games to earn crypto models

In the p2e space, there are four game business models that studios typically choose from – Pay-to-Play, where gamers pay an initial amount before playing, Free-to-Play where gamers start the game for free and then spend to advance elements for sale , and Play-and-Earn where players earn based on their in-game efforts and their outcome through blockchain economy.

Our blockchain experts brainstorm the pros and cons of each model with the clients and finalize one.

B. Build play-to-earn crypto games

The essence of the play-game-to-earn model is to create a platform that invites players to buy and trade virtual assets to progress in the game. On that note, the best game genres are multiplayer online strategy games, role-playing games, and trading games. We help our customers create an immersive web3 gaming experience.

C. Fix the revenue streams

There are three primary ways to monetize play-to-earn NFT game development – ​​In-game purchasing and trading between players, transaction fees on the sale of assets on exchanges, and display advertising. We help our clients integrate one or a combination of different monetization options into their play-to-earn-games business model.

After the creation of the play-to-earn blockchain gaming business model, we help our clients with the execution part starting with creating the gaming platform on web3, building cryptocurrencies and NFT, and finally the platform with connect crypto exchanges, making trading assets easier. Finally, we help you answer what does the future hold for the play-to-earn crypto gaming industry? With a platform ready to join the leagues on the back of an immersive experience.

Want to get your play-to-earn game idea to market? Talk to the mobile game development company trusted by game studios worldwide for a bug-free, rewarding gaming experience.

THE WRITER

Sudeep Srivastava

Co-founder and director