Today I am going to explain why almost all play -to -earn games die . I will discuss some reasons why all these games die But let's get into the most obvious one first, The money must come from somewhere when it comes to play -to -earn games the idea is pretty simple you play the game and you earn money .Well, where does that money come from to keep players playing?
It would seem that you would need to keep paying them. now There are tons of ways you can pay these loyal players .But let's go through a few different ideas .As an example , new players. many play -to -earn games follow this model whereby money is pumped Into the system by a new player required to buy an item. for example to play axi infinity, You must buy an axi which is a character used in the game. when someone buys an axi ,They are putting money into the game that is then through a series of transactions, possibly cashed out by another player. This is not sustainable because there is no case where every player has made money if one player makes money .It is made from the money that another player has Invested or injected into the game. Almost all play -to -earn games work this way. by taking money from new players and giving it to older loyal players. So this just isn't a good idea.
Let's move on to where the money can come from. another one is a membership model. Another way these games can raise money is through a membership model, where they charge all players a set fee to participate and play the game. This is a much better model than the previous model because it means the fee is equal for all players. A membership model would look like a seasonal membership fee that is the same for all players, where the skillful players will win the money that the skillless players paid in.
To me, this is a much more fair model, but it also leaves a ton of money on the table, which is probably why many protocols don't even consider it. It's also much easier to market that when you pay $100 to buy an axi, you get to keep that axi as something that you own, compared to a $20 seasonal fee to play the game that expires once the season is over.
The next another option can be Pay to win. Another revenue option is the Pay to win route. Now thisone's pretty obvious, and we see it in some games like Minecraft, where you can spend a few $100 to jumpstart your way to hard-earned tools and items. Because this is seen as giving rich players an unfair advantage, some other games raise revenue this way, but instead of giving things that are useful like items or tools, they instead give other useless things like a different skin, or the option to change your username, or just the ability to flex by changing how you look.
Up until now, the options that I just explained aren't really good options for the users.This brings us to another option, Advertisements. So the next option, or at least the best option
that I can think of, is an advertisement model.Now this is
outside money coming into a game, and it's not from lower skilled players, and it's also not from the hope of speculative investors making money. In fact, it's an actual business model.
The Play to Earn game could have a few advertisements throughout the game that raises monthly revenue,of which some of that could be portioned off for skillful players to reward them for playing, and the rest could go to the devs to continue to develop the game. Thus, the development team has an incentive to build a game that attracts a lot of users. The players have a sustainable way to actually earn money while they play, at least if they're good, and most importantly, without taking it from the skillless players, and these advertisers get a new paid advertising route that may be really effective for their goals.
I thinks I have written to much about my thoughts. Hope you enjoyed reading it.