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What is Play to Earn (P2E) in Gaming?

What is Play to Earn (P2E) in Gaming?

The gaming industry has gone through several eras. In the beginning, games were sold on CDs and DVDs, then they evolved into a digital format. But in the past few years, there have been many free games that can be downloaded from Steam or other game libraries. Licensed versions of free games are designed for the player's internal purchases. In some cases, this brings in much more money than directly selling the licensed version of the game.

What is P2E gaming?

But what if players were paid for their participation in the game? Such a financial model already exists and is actively developing. The new format of games is called P2E (Play to Earn). It means that the player downloads the game for free. During the game, he gets different in-game items and levels up the characters' skills. Each in-game item has a real value in the form of NFT. Due to this, items and characters in the game can be sold for cryptocurrency. It is a free market and items can rise in value quickly.

The boy is playing a game

Recall that NFT is a unique cryptographic token that can be used to identify a digital item. It is thanks to this technology that many digital items have become a real commodity. Among other things, it allowed in-game items and characters to be traded on the free market among players. It has created a market environment through which the value of such items has increased greatly.

NFT Coin

The most popular P2E games

A lot of P2E games have appeared in the last 2 years. They all have similar game mechanics. Players get access to the game for free. They then begin to create and develop in-game characters. They receive rewards in the form of in-game items for completing missions or for achievements. Each item is an NFT. That is, it is a unique digital token that identifies the owner. Any NFT can be sold within the game or on the free market. It's a token (cryptocurrency), after all. Each such game token has a market value, which depends on many factors (value, rarity). The more time a player spends inside the game, the more valuable items he can collect.

The developers also make a significant profit from this. The game becomes a free market, where purchases and sales are made between players and between player and developer. In addition, the developer owns a large volume of NFT items that generate profits.

We have collected the most popular games of this format:

  • Axie Infinity
  • CryptoBlades
  • Star Atlas
  • Zed Run
  • Gods Unchaine

Cryptocurrencies are still not widespread, but the GameFi (Game Finance) segment may become its catalyst. It is especially noticeable in low-income countries. In the above-mentioned games, you can earn $100-200 a month on tokens. In India, Indonesia, Africa, Malaysia, Pakistan, and many other countries this is higher than the average salary. Therefore, many people quit their jobs and studies to play and earn NFTs all the time. It creates a great prospect for this kind of gaming in the future.

The future of P2E gaming

Electronic Arts CEO Andrew Wilson believes that NFT and the blockchain-based Play-to-Earn model are the future of the video game industry. Therefore, EA intends to take an innovative and creative approach to the use of this format in their projects. It was announced in November 2021. It was followed by statements of other influential personalities in the gaming world. Major developers already understand that in the future, the Play to Free model will be replaced by Play to Earn. Players will no longer need to buy in-game weapons, characters, or items for dollars. Players will now earn tokens. And this is a new reality.

The concept of Play to Earn is an innovation in the blockchain industry that has the potential to revolutionize the gaming economy. The open economic model ensures that players who participate players who participate in the development of the game world are financially rewarded for doing so. What happens next? Domino effect. Seeing how other users are earning, more and more new participants. At the moment, there is an upward trend in this market. In addition to retail investors, large institutions and investment funds are investing in them. The near of the industry looks quite favorable.

P2E gaming

P2E is a better financial model in the gaming industry. Such a model would not work without NFT. With the development of cryptocurrency, it became possible. Moreover, this financial model is beneficial for both players and developers. According to official data, the most popular P2E game Axie Infinity has a capitalization of over $700 million. That's more than some AAA games that have a standard financial model.

At this point, we expect P2E games to be made by major game studios, including Rockstar Games, Electronics Art, Infinity Ward, and many others.

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Please note: purchasing or selling Cryptocurrency carry significant risk. Prices can fluctuate at any time.
Because of such fluctuations, Cryptocurrency may gain or lose value. This is your responsibility on how to handle your own assets.