The play-to-earn (P2E) business model has been under scrutiny lately, with game publishers and developers looking for alternatives to replace it, according to a panel at the NFT.NYC 2023. The Cointelegraph team was on the ground in New York to bring exclusive insights from the NFT event. The CEO of gaming platform OP Games, Chase Freo, stated that companies branding themselves as P2E are shifting their strategy amid the crypto prices downturn. Freo noted that it’s a model that is not sustainable at all, citing Axie Infinity’s shift in some of its flagship titles as an example.
Minoru Yanai from Minto, a Japanese manga and anime design company, mentioned that game companies are now “looking at play and fun, and sometimes earn or swap.” He added that players can still earn tokens and rewards, but publishers and developers are more focused on being sustainable and flexible. Paul Flanagan, head of business development at Estonian mobile game developer CM Games, claimed the core problem with P2E models is that it is a “zero-sum.” “As we all know, most of them are Ponzi schemes, so if you are putting branding sponsorship as a source of money, that might work, but we still need to see that happening,” he said.
From left: Chase Freo, Minoru Yanai, Paul Flanagan and Paul-David Oosthuizen at the NFT.NYC 2023. Source: Cointelegraph
The industry is exploring alternatives to the P2E model, such as marketplaces and partnerships that allow players to return tokens to the game ecosystem instead of playing and liquidating them. The panelists noted that more companies are trying to make sure that the game has a really good core loop that enables players to put back whatever they earn into the game. Freo stated that it is very challenging, but it is necessary to ensure the sustainability of the game.
Speakers on the panel also highlighted that the Web3 gaming industry is seeing more tangible products on the market following years of development. In East Asia, a better regulatory environment allows Web3 gaming companies to raise more funds and seek alternative business models and solutions to improve players’ experience.
Despite the shift in focus, there is still a place for P2E models in the gaming industry, but it must be approached in a sustainable and flexible way. The industry is constantly evolving, and new models are emerging that offer greater flexibility and sustainability. With the rise of Web3 gaming, there are opportunities for game developers and publishers to create innovative solutions that meet the needs of players while also ensuring the sustainability of the game ecosystem.
One potential solution is the integration of blockchain technology, which can help create a more transparent and fair gaming experience. Blockchain can help ensure the security and authenticity of in-game assets, and provide players with greater control over their assets. This can help to prevent fraud and protect players’ investments.
Another solution is the creation of gaming guilds, which can provide players with a community to share resources, knowledge, and expertise. Gaming guilds can also provide players with access to specialized tools and resources that can help them succeed in the game.
While the P2E model may not be sustainable in its current form, the industry is exploring alternatives to ensure the sustainability and flexibility of the gaming ecosystem. With the rise of Web3 gaming, there are opportunities for game developers and publishers to create innovative solutions that meet the needs of players while also ensuring the sustainability of the game ecosystem. The integration of blockchain technology and the creation of gaming guilds are just two examples of how the industry is evolving to meet the needs of players.