Singapore’s SkyArk Studio thinks it has blockchain gaming figured out
The current crypto downturn may leave some game developers cold-footed when venturing into the industry, but one Singapore-based studio is plowing ahead.
SkyArk Studio is a Singapore-based blockchain game studio backed by cryptocurrency exchange Binance. It currently has over 36 people working on its upcoming project, SkyArk Chronicles.
The game relies on the concept of games to earn games that allow players to earn money via Non-Fungible Tokens (NFTs) and cryptocurrency.
By leveraging blockchain technology and a team of crypto experts, SkyArk believes it can incorporate blockchain technology alongside traditional game development to create the next digital ecosystem.
However, instead of using the traditional play-to-earn model that most crypto games use, SkyArk’s business model revolves around aplie-and-earn strategy, which allows players to earn lucrative rewards when they play instead of doing so solely to make money.
“Game companies tell the public that if they play their games, they make money, which means they don’t have to work anymore,” said Chris Ng, SkyArk Studios founder.
“They tell the audience that they can earn $100 USD every day by playing the game, which is simply impossible.”
One reason is that the current play-to-earn business model is not sustainable. Game companies that rely on this model tell their audience that they don’t have to work if they play their game, Ng added.
Despite this, there have been many concerns from critics of cryptogaming about whether such games operate on a “pay-to-win” model where players are strongly encouraged to shell out money to progress further into the game.
Video game developer Valve (publishers of Dota 2 and its multimillion dollar tournament) has even outright banned the use of cryptocurrencies and NFTs on all games available on their digital storefront, Steam.
Not his first rodeo
Ng founded SkyArk Studio after deciding to venture into the crypto gaming world after it rose to prominence back in 2020.
He previously worked as a financial analyst before co-founding XII Braves, a local gaming company.
SkyArk Chronicle’The play-and-earn model is designed to reward players with collectibles in the form of NFTs, where each hero and character they collect is uniquely different and individually numbered.
This creates value in the NFTs acquired as each hero is different from the other.
The idea to convert the in-game heroes and characters into NFTs came after Ng and his team realized that the process of converting existing art and assets from the game into NFTs was relatively simple. They could use this as a significant form of income, especially for the artists.
A question of motivation
With more than 2.5 billion people in 2022 playing games worldwide, the number of blockchain games has increased by 71% since last year and is now over 1,000.
These games have also attracted more than US$2.5 billion in investment, with the global gaming market itself set to be worth over US$340 billion by 2027, according to Mordor Intelligence.
But with the recent crypto crash that saw cryptocurrencies like Bitcoin fall in value from $68,000 in 2021 to $24,500 as of August 15, the world of NFTs and crypto remains highly volatile and unpredictable.
“I feel that what drives the crypto game craze is not the game design itself, but the extrinsic motivation to earn NFTs that draws players in,” said Nash Lin, a game design and development lecturer at Temasek Polytechnic.
“If the NFTs created have no real value in the virtual or physical world, I think the craze will die out soon.”
While they may have become a breeding ground for exciting innovation, the future of crypto games remains uncertain.
It’s not as simple as turning anything and everything in the game into an NFT,” said SkyArks’ Ng.
“You have to be innovative and create rewards that players feel motivated to work towards. It is also crucial that you understand your audience and reward the game’s dedicated players and collectors, rather than treating them as customers,” said Ng.
This story is the work of student contributors working with Yahoo Southeast Asia.
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