What are play-to-earn games?

What are play-to-earn games?

The play-to-earn gaming model embraces the idea of an open economy and financially rewards every user who adds value by playing and spending time in the gaming ecosystem.

NFT & Video Games, Play to EarnPin
NFT & Video Games, Play to Earn

In the past, the perception about games was that they were just a way of having fun. That perception is changing now as a new class of games are emerging. These games are not only fun, but they are also attractive investment opportunities.

Speaking of investments, in recent times, the industry has seen big venture capital firms invest a lot of money into it. As much as $9.6 billion was invested in the global gaming industry in the 18 months leading up to 2019, and 24 blockchain-based gaming companies have seen $476 million in investments in the first half of 2021 alone.

In recent times, play-to-earn games like Axie Infinity and The Sandbox have gained popularity, and one thing they have in common is their economic system.

Take the traditional game The Sims for example, where a player can buy in-game assets with the in-game currency — but the currency and assets have no real-world value. This is because there was no infrastructure for liquidity in the game.

play-to-earn games
play-to-earn games

Another traditional game, World of Warcraft, does have a marketplace where players can buy in-game assets and exchange characters, but it is very unorganised. Blockchain technology in combination with the play-to-earn model has solved all these issues.

Gaming News 24/7 - Reinout te Brake -  Video Games Podcast - Game Consultant - Video Gaming News 2021
Gaming News 24/7 – Reinout te Brake –  Video Games PodcastGame ConsultantVideo Gaming News 2021