StartKryptowährung NewsFunction over fun? Analyst says P2E games dont need to be fun to retain users

    Function over fun? Analyst says P2E games dont need to be fun to retain users

    Video Function over fun? Analyst says P2E games dont need to be fun to retain users

    Play-to-earn (P2E) blockchain-based games gathered investors’ attention in late 2021, with Axie Infinity leading the pack with over 2 million active users. In P2E games, players are awarded crypto or nonfungible tokens (NFTs), as they progress throughout the game. These digital assets can be sold using marketplaces and cryptocurrency exchanges, generating income in a decentralized manner.

    However, there is a large discrepancy between P2E and traditional PC and console gaming experiences. In that sense, crypto games are a couple of decades behind due to the restrictions imposed by blockchain technology.

    Yes, most crypto games lack a decent user experience

    Although the promise of AAA-level crypto games eventually developing exists, so far, most of the launches gravitate toward digital trading card battles, decentralized finance (DeFi) disguised as role-playing games and collectibles.

    Read more: Unblocking Blockchain: Gaming Is the Tipping Point for Mass Adoption

    Unsurprisingly, crypto games critics focus on the lack of fun, or a comparable user experience versus the traditional market, as pointed out by analyst Udi Wertheimer.

    “ayyy what are you doing tonight let’s play the new crypto game together!”said no one everbecause crypto games aren’t funand also don’t exist

    According to Anton Link, the CEO of NFT renting and leasing protocol Unitbox Protocol:

    In terms of adoption, the traditional gaming industry beats the movies and TV entertainment by a large margin. A recent report from Newzoo suggested that the video games market will reach $200 billion in 2022, a 5.4% increase year-over-year. In addition, the report states that the gaming segment entices 3 billion players, far higher than the estimated 320 million crypto users worldwide.

    Read more: As NFT sales collapse, this Candy Crush developer-turned-VC says blockchain gaming is speculation

    Even if Wertheimer’s remarks are correct, meaning the demand for crypto games will remain sluggish, capturing a mere 0.5% of this segment equates to 16 million users. Moreover, there’s nothing impeding someone from seeking some form of revenue in P2E and, separately, enjoying traditional games on consoles, PCs and mobile apps.

    In regards to the potential expanding P2E user base, Anton Link, the Unitbox Protocol CEO said:

    There’s a considerable difference between collectible NFTs and in-game avatars, armors, weapons, land and spaceships. Likely the prejudice against P2E games comes from the 67% decline in NFT trading volume from May 2022 to July 2022, according to data from DappRadar. Furthermore, Axie Infinity has been plagued by a massive $600 million Ronin bridge hack on March 29.

    DeFi-focused games could generate income for many

    There’s plenty of valid criticism for the crypto gaming industry, and forcing users to buy items or tokens sits near the top of this list of complaints. However, one should note that the multiple DeFi applications are disguised as games, such as DeFi Kingdoms, Farmers World and Sunflower Land. In these cases, expecting free compensation without any initial investment would be weird.

    Read more: Blockchain Gaming Needs Triple-A Titles to Truly Go Mainstream

    Despite the challenges in onboarding users and creating sustainable in-game economies with sufficient incentives, Link explained that “It will only be a matter of time before institutions start lending against NFTs.”

    He elaborated with:

    Maybe, in the near future, players will no longer have to buy digital monsters and spaceships before adventuring in P2E. Even though there’s valid criticism for the crypto gaming industry, a 10x increase in active players to 16 million is not far-fetched. More importantly, this growth and the new models supporting it do not need the same user experience provided by traditional games that don’t require interaction with blockchains.

    The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk. You should conduct your own research when making a decision.

    Read more: Says them it to blockchain games – Krypto-NFTs

    Source: 🔗

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