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Challenges
In most of the web2 games, there is no concept of asset ownership that can eventually be turned into cash and cash equivalents. Furthermore, in-game assets cannot be traded or exchanged. There is no means to monetize assets based on their uniqueness or rarity or cumulative historical value metrics, that a gamer collects by progressing in the game he or she plays.
The Majority of the NFTs have just a visual element associated with them. There is an impending lack of NFTs with deep use cases. There have been studies that have indicated that most of the NFTs without use cases will eventually see erosion in their value over the finite time periods due to large amounts of NFTs being launched with no barrier to entry without any utility associated with it. This will create oversupply of non-use NFT inventory and affect the market acceptance as asset class.
P2E games represent a new viable revenue stream for players who can earn the in-game rewards by playing. However, most of the projects fail to create sustainable economic utility for these tokens, which leads to heavy supply and less demand. This inflationary supply leads to depreciation in price and eventually, a total collapse of the game value creation. Most P2E games have a poor token utility design due to the lack of historical data, limited time focused on deep data research on blockchain, and lack of behavioral science identification for game economics.
Every year, over $15 billion is spent on the purchase of in-game assets and millions of hours are spent on game engagement. This leads to wealth inflow in a select group of gaming publishers and application stores while the people who are spending money to play these games are not being rewarded. In this era of creator economy, there should be a way to monetize every engagement in the game - whether resources spent on time or money.
The Majority of the Blockchain or Web3 games have simply focused on the P2E model, whereas Web2 games focus on the in-game experience and gameplay and sticky addiction factor designed within. There aren't any Web2 games that you can reward yourself for playing and there aren't any Web3 games that present sticky addictive gameplay with immersive graphics and intuitive provocation. Best games needs best of both worlds of Web2 and Web3 unified as one.
Last modified 1yr ago