When the play-to-earn game came along, people thought that it would change the entire gaming industry. Some people even called it the killer of “fun to play games”. However, even before this technology could do anything, it sank into the depths of the gaming market.
P2E gaming is the technology that removes the wall between gaming and trading. So, why is it failing despite having such a good economic strategy? If you do some studying, you will find that its good is bad, which drowned it.
And here are some of the possible reasons why the P2E games dying.
Why are P2E Games Dying?
1. Games Don’t Need Blockchain
Blockchain has its advantages, but P2E games do not need to be on the blockchain. It can also function as a traditional game. The advantage of not being on the blockchain is that the game would be less costly so that even players with a low budget would be able to play. We already see fake coins in traditional games which the player earns and buys various items from that earned coin in the game.
2. Losing the Promise of Earning While Playing
The income-generating capacity of the game is much less than its investment (NFTs), and as these NFTs get older, their income-generating capacity also decreases. There is no difference between new and old players, and how much the income they will generate depends not on their skills but on their investment.
In simple terms, the player gets income not from his playing skills but from his participation in the game. And this is the reason why traditional gamers dislike P2E games. Apart from all this, it is also important to keep your income unchanged because the player’s income comes from the money of new players who take part in the game, just like a Ponzi scheme.
3. The High Barrier to Entry
The P2E game process is so complicated that it is difficult for a normal player to access it. Playing a traditional game requires only skill while playing a P2E game requires skill, technical knowledge, and financial knowledge. Because of this, the player has to study cryptocurrency and blockchain before playing that game.
In addition to all this, to withdraw the income won in the game, one has to go through some banking processes, and since there is cryptocurrency involved, the player may also have to go through tax processes. As a result of all of this, players who are under the age of 18 or do not have this facility are barred from participating in the game.
4. Unnecessary use of NFTs
Traditional gamers hate NFTs. If a game is NFT-based, then that is fine, but why put NFT in it when it is not needed? For example, Cryptokitties, which is a card game, needs the NFT function, but MOBox, which is an action game (like Battle Royale), why does it need the NFT function?
Due to NFT, the game is not instantly playable because, to play it, one has to buy NFT first, so those players who test the game first before buying it do not get attracted. Apart from this, NFT is very expensive.
It is very difficult to play the game without these NFTS; as a result, only those who have NFTS can play this game, and their number is very small.
5. The Prioritization of Money Over Enjoyment
One plays the game because it is attractive and people enjoy it, but P2E games have nothing to do with these two. There are many games on the market, and some are waiting in line to come out, but all of them are the same.
Most of the games are card games, which are not very popular in mobile games. Some games are such that gamers don’t even need to play; they just have to buy NFTs and the game does the mining itself (auto-play). Overall, it gives more value for money than enjoyment.
The only way to attract the traditional player is to make the game more attractive so that the player does not pay attention to earning cryptocurrency, but enjoys the game.
6. The First Come, First Served Policy
The newer the NFT, the better it will give income, and as time goes on, its ability to give income also decreases. Because of this, those players who come late in the game have difficulty earning income.
The problem is buying NFTs is difficult. The platform always launches in limited quantities. This is because the price increases so much that a new player may not be able to afford it. And until NFTs officially come on the market, their price will increase further while their capacity to earn income will decrease.
7. The Battle Between Players and Bots
On average, every Web3 game has bots making up 40% of its entire user base. It is hard to believe in a game where there is money and there are no bots. Luckily, these bots are only found in player-versus-player games like Axie Infinity and not in RPGs or card games.
These bots are harmful to a player as well as to the gaming company. The player using this bot gets some advantages, like shooting, aiming, or something else that gets activated when another player comes into range.
Earlier, gaming companies used to ignore these bots because it was beneficial to them. According to Jigger’s data, the game with the highest percentage of bots belongs to Karmaverse Zombie, with 96%. MetaGear, AnRkey X, and ARIVA have bots that make up around 80% or more of their user bases.
Axie Infinity is the first game to start banning bots. The income of these banned accounts is frozen, and their purchased NFTs are also denied the right to be used again. Surprisingly, there are some top-level and high-income players in these banned accounts.
Conclusion
These risks are not insurmountable and can be overcome through thoughtful product design and continued attention to consumer protection efforts. Ultimately, P2E gaming is not unlike traditional entertainment industries. Each of these has had its challenges to contend with in the march toward consumer adoption.
Given the risks involved with P2E gaming, consumers should be cautious when evaluating P2E gaming opportunities. Points to consider include, but are not limited to, the economic dynamics, security, gaming function, earning potential, and the risks associated with investing before or after a reward currency.
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