How Free-to-Play NFT Games Are Disrupting the Crypto Market by DailyCoin

By 2022, the gaming market will be valued at $220.79 billion and is constantly growing. Traditionally, the gaming industry uses a couple of business models, including premium pricing and free-to-play (F2P) games.

The use of Web 3.0 and crypto-technology is revolutionizing gaming by changing the traditional notions of the industry. But do these changes work both ways? Do the games affect the crypto markets?

Free-to-Play and Play-to-Earn games

The free-to-play model departed from the previous approach, sometimes known as premium-priced games, where users paid for the game’s cost upfront, and game performance was based on the number of units sold. In contrast, F2P games allow users to access a significant portion of their content for free and cannot require payment to continue playing.

These games’ business models are based on free onboarding of new players. However, they are encouraged to make in-game transactions to access the additional content. The F2P game model was first used in early massively multiplayer online games (MMOs). It was later adopted by major game publishers to combat piracy.

The most important aspect of free games is the number of players a game can keep consistently engaged and get them to buy additional content. Web 3.0 technology brought new concepts into the gaming industry, such as ownership of in-game items and gaming to make money.

The non-fungible token (NFT) technology enabled the creation of an in-game economy and ownership of assets. By using NFTs, players are empowered to achieve proven ownership of digital assets, which was impossible before.

Play-to-earn games offer real value to players in exchange for the time they spend playing. The use of blockchain technology has made the essential link between the winnings in the game to real value in the form of cryptocurrencies and NFTs.

Can gaming affect the crypto industry?

The gaming industry is changing, but can gaming also affect the crypto markets? In an interview with DailyCoin, Matvey Diadkov, CEO of NFT gaming metaverse Chainers.io, claims that the crypto world can benefit from the gaming industry because it presents a “massive way to attract new audiences.”

On the other hand, it is difficult for traditional game developers to escape the crypto world. They must adopt it for payments or as a method of exchanging assets where necessary. Like any other successful crypto project, crypto-based games must have good mechanics and provide value to the players. Diadkov believes that pump-and-dump games are becoming a thing of the past as new games invest in long-term goals.

“I would say that it is a trend change and a departure from the play-to-earn model. At least from the one on which popular projects were launched last year. Crypto did not bring anything new to the economy – it is just a good tool . And if your game does not create added value in terms of entertainment, then the value of your token or NFT will be close to zero,” says Diadkov. According to Diadkov, crypto games will not replace the traditional approach to the game industry and game development, but will most likely become a “class of games of its own.” Since crypto projects are in most cases community-driven, with their own economic system, the games will adopt the same principles of the core game mechanics.

On the other side

While free-to-play games that provide real value to players are on the rise, some experts believe that the current play-to-earn economic model is unsustainable. Some play-to-earn models rely on a steady flow of new players, resembling a pyramid scheme where the older players earn based on how many newcomers they bring. Game developers will need innovative game mechanics to maintain long-term value.

Why you should care

The free-to-play model is becoming the main approach in the gaming industry. With the introduction of Web 3.0 technology, the gaming industry is moving towards new types of game mechanics where players earn rewards with real value. Some predict that within the next five years, games to make money will make up 90% of the gaming market.

Read more about games to make money that teach users about cryptomining:

Learn About (BTC) Mining With Play-to-Earn Games: A Review

Read more about the best play-to-earn projects:

Top 10 Play-to-Earn Projects to Watch Out for in 2022

See the original on DailyCoin