Experimentation and maturation to be seen in P2E games.
The evolution from a play-to-earn (P2E) to a play-and-earn model suggests that there is still experimentation and maturation to be seen in these games, says Aron Beireschmitt, the CEO of Laguna Games and founder of Crypto Unicorns. He believes nothing has changed.
Beireschmitt said that with blockchain technology, crypto natives and gamers are now able to play, own, and also monetize from the play-and-earning models. But whether it’s sustainable or not, is to be seen. He said charting a path to sustainability through the combination of economic farming simulation, and real-time skill-based gaming loops to attract more users into the ecosystem. Beureschmitt explained that gaming loops, besides having a semblance of form and function, also need to be fun and engaging for players.
However, he says blockchain-based games are not for everyone. The CEO said Crypto Unicorns target a demographic that is more in line with those who are crypto natives. Beireschmitt sees a lack of incentive alignment for free-to-pay, wherein developers maximize on extracting value from the minority of players who spend on free-to-play games. It creates a mismatch in the paradigm, while Web3 gaming enables players to reach a new level of autonomy and ownership in terms of in-game items, assets, and skills.
Beireschmitt says this is what makes the play-and-earn model compelling as players can earn along the way while playing their favorite game. He said Web3 enables players’ provenance and ownership, and with governance models, they are empowered to take ownership of the direction of the game, the ecosystem, and intellectual property. Furthermore, in-game economies are a sticking point for most play-and-earn games. Beireschmitt highlighted the factor that aids is the dynamic between passive and active players. He emphasized that for dynamic to be sustainable, skill-based gaming loops and token sinks must be implemented as it returns the player back to the economy and ecosystem.