The Play-To-Earn Gaming Model is Losing Popularity

A survey by the Blockchain Gaming Alliance (BGA) suggests that for blockchain games to be adopted in 2023, they will need to improve their gameplay.

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Based on new research, the blockchain gaming industry is experiencing a "shift in priorities." The previously popular Play-To-Earn model is no longer as popular, and the focus is shifting to improving the gaming experience.

This research was reported in the BGA's annual report on 12 January. The survey involved 347 professionals representing 252 different blockchain projects or companies. Most of the representatives were young people from middle and senior management of companies involved in blockchain games.

One trend gleaned from the report was an apparent shift in how blockchain game executives view the Play-To-Earn model as the basis for blockchain game adoption. Based on a similar survey conducted in 2021, 67.9% of representatives agreed that the model is most important for the growth of blockchain games, but in the most recent survey, only 22.5% of representatives agreed with this statement. Conversely, the bigger priority for the adoption of blockchain games in 2023 is said to be improving gameplay, which was something 35.7% of representatives agreed with.

Pedro Heddera, head of research and analytics at DApp tracking site Dappradar, said that interest in Play-To-Earn is waning due to "falling cryptocurrency prices and the Free-To-Play model," which is paving the way for a new generation of games for Web 3.0, adding, "the year 2023 will be crucial."

Rowan Zwiers, co-founder of consultancy Blockminds, said in the report that after the previous hype surrounding Play-To-Earn games in the first generation of blockchain gaming, the industry is currently somewhere in the middle of a "return to normalcy."

According to Zwiers, Play-To-Earn models have "proven unsustainable" but have also helped to develop the next generation of more advanced blockchain game dynamics. Hartmann Metaverse Ventures investment director, Felix Hartmann, explained that "cheap Play-To-Earn point-and-click browser games" don't have the funding they used to because "capital has become smarter and more demanding."

Hartmann also suggested that investors are turning to a better experience for players instead. He noted that:

"More top game studios integrating Web 3.0 and AI into high-quality games based on Unreal Engine are enjoying more interest."

Mirai Labs co-founder, Corey Wilton, said there will always be "lovers" of the original Play-To-Earn model, but it is arguably more profitable to create games that "appeal to casual everyday gamers."

The report points out that the biggest problems in blockchain games are poor gameplay and problems with misunderstanding game concepts.

In conclusion, then, the blockchain gaming industry is growing steadily, despite the fact that the current "crypto winter" is very long, according to a portion of the report backed by DappRadar.

The number of transactions carried out in on-chain games has reached 7.4 billion, a 37% increase compared with 2021, and even a staggering 3,260% increase compared with 2020.

The report further states that cryptocurrency has not had a major impact on the number of blockchain players for existing games.

BGA president Sebastien Borget said that this suggests to him that the industry is "putting players first," thus focusing more on the benefits of blockchain for the gaming industry than the volatile market.

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