The GameFi Cycle - Why all Play To Earn (P2E) games die

Scam alert: I will never contact you. Don't look up the tokens mentioned in the comments (they are scams). Be very skeptical in the comment section. Be safe <3

I think the latest with apple and google is the biggest downside haha

Playing games consume a lot of enegry in the form of power/electricity. That energy is wasted on fun. lol. What if this energy was used to hash, like in mining. Then players who play the game actually provide security to the blockchain via PoW. This mining could reward players or not. Since the game is fun, it will be played rather a reward is earned or not. However, earning a token or coin for mining a block on the games blockchain creates an attraction. Using a Auto market maker that holds a liquidity pool of USD and the game token or coin, where players can cash in their tokens for USD at a ratio of 100 to 1. Each set of 100 game token or coin cashed in will burn that token or coin making less in the liquidity pool than USD, and raising the tokens value. Soon the token will be worth more than the USD. This will create a trading opportunity where traders will buy the coin or token with USD filling the pool with more USD causing the USD to lower the value of the token or coin and a supply and demand system is created.

NFT's can be used as in game store items that record the achievements using the NFT. That way no two NFT's are the same as each player plays differently and wins or looses differently.

Take Madden 23 for example. Each player could be an NFT, each stadium, playbook, or play scheme. AS games are played these NFT's record data specific to that NFT. When TD's, catches, yards gained, fumbles, etc happen, the NFT changes. When team trades or Draft, or sign free agents, that data follows that NFT. That way no one can have the same players and new players NFT's can be minted with each draft. Stadiums can be minted when owners buy new ones or upgrade old ones and effect the game via crowd numbers or field turf.

No one can easily hack into the game and make mods that cheat, because the mining's PoW consensus will not except fake blocks of data.

Now the game is already fun, so players will play anyway, and an egosystems is created that earns money. Throw in some tournaments and even a fantasy daft and it could be really cool. So what do you think?

Neoxa flipped the play to earn strategy and went with what just works:

1. Neoxa is a PoW fork of Ravencoin (fork of BTC) which launched fairly without ICO or premium getting 45% of the 5000 block rewards per minute.

2. Neoxa is also a fork of Dash which provides 45% payment of the block rewards to smartnode operators which QC the miner's work and locks each block for extra security.

3. Neoxa runs game dev approved servers on the games that we already play and love like Rust, Minecraft and GTA5 and pay them 5% of the block rewards to its players.

4. 5% of the block reward goes toward the dev fee to hire devs, pay for servers, marketing, listings and more.

5. Coming soon will be monetizing streaming and in game advertising to bolster the gamers reward.

Come check it out!

Artyfact is here to bridge the gap lacking in P2E games

I agree to everything that this video says. I think that some developers in their enthusiasm for this new block chain technology have wrecked their brains trying to figure out a way to build games on top of it, and the result is a brand of game mechanics that is more reminiscent of pyramid schemes than of entertainment. Maybe the block chain can be used for something in some games. I just don't know what it would be, and I think that if you set out to design a game that could not be made without block chain technology, then you are going down the wrong path from the outset! If you want to make a game, focus on making it fun and entertaining, and if you then discover that you need to use the block chain to realize your idea, then by all means try it out. Just don't hoodwink yourself and your players into thinking that a game can generate money out of the blue without anyone paying the bill.

The economy for this games is not established, at all. Check our concept where Bitcoin halving model used to distribute infinitely.

I really like your point of view, thanks for the video.

I totally agree with these 4 points. In my opinion, an honorable mention / exception are trading card games. One can argue about the fun, but there is definitly a market for them and I think it really makes sense to make these cards tradable NFTs.

Great explanation! P2E need to be fun rather than games that people play purely for the goal of financial gain

When Ai takes away all normal ways to earn fiat or crypto, you'll will be happy to earn by gaming...

The main problem that I see is: gamers do not produce output- so techinically there is nothing to pay them for. Only pro-gamers gererate output by gathering crowds at events and helping gaming equipment companies market their products, effectively making them sales managers in the classical sense of the word. For this reason I agree completely- we have to look for bodies that will gain themselves when giving money towards a game. Energy drink companies- dominos pizza- and any company that produces goods that are complimentary to what gamers do. Non- pro tornaments can be another way- they were around since before crypto right? we can have admission fees into tournaments where only the top 3 (for example) get a monetary prize at the end.

The last thing i want to try and communicate- games like The Sandbox allow players to create their own assets from scratch and sell them on the in game market to other players for crypto- Vox receive a comission just like on a minted NFT and everyone is happy.... BUT!!!!! the assets you conjure up are actually very easy and fast to make- and the maximum beauty of a pixelated asset is.... mehhhh.

So ye- we have another game called "Barotrauma". Its a steam game that just came out of early access recently. The game has a huge fanbase and very positive reviews, people are absolutely loving it and are spending thousands of hours in it. Whats more is that it only weighs 1.5 gb- requires you to have cabbage-like specs on your pc and for me is much more visually impressive than these pixel games. even though Barotrauma is a 2d game... But the element of the game that's really relevant here- is the Submarine creator tool. If anyone knows what im talking about, please back me up- if people had an easy-to-use marketplace where they can trade these submarines, tinker with them after having bought them ( there is A LOT to tinker with) and resell them to people. If the game studio managed to get an order system going- by which a player can request a submarine to be made by another player to some exact specifications, these things are easy to start making but require alot of time and effort to make good. For those who have no clue what im talking about- its kinda like photoshop, but after you made the picture- you have to make the submarine work by establishing hulls, waypoints, and connecting all the electricity. When you are done building, you will then need to test the sub to see if it doesnt run out of voltge for some reason, and doesnt uncontrollably sink to the ocean floor..... blah blah blah.

The point is- it took me around 30 hours to build a medium sized sub and test it. Not everyone has, or even wants to spend this time- but everyone who plays the game wants a good sub. It's a ready market that nobody has started to reap. It has all the boxes ticked- the game is fun, the sub builders are actually producing output for other players, this makes the game both: pay-to-win and play-to-earn, players inside the game can make money if they can be bothered to go through with the building (it won't be fun for all, just for weirdos like me) and the players that can't be bothered can just pay and receive awesome digital products and actually use them (like the Sandbox but better). The game developer can be taking comission from every trade and will have to regulate plagiarism somehow in the game. When made with love and care, these subs can also look very very nice and can be used as NFT's on markets that have nothing to do wth the game. Obviously this game is just an example and the same formula can potentially be applied to literally any existing good game, but with Barotrauma all the elements are already there- apart from the market itself. If modders stopped doing what they do for free- then i think alot more gamers will start making money from their hobby. And not just the modders themselves- if you see what i mean.

Amazing video man :]

I disagree with you man, not all play to earn games die because most people still plays mortal kombat x and more other games :]

But if you add skins etc as rewards only, then players can sell them, company makes a profit off the transactions. Which makes the items scarce and drives demand, which in turn keeps the market place going because players will keep reselling for profit.

I agree but not the last part that BC is not needed in these games because blockchain makes transaction more easier than what old games we used to play.

You could put code in the NFT that if someone sells the in game item to another player in the in game marketplace the original owner being the game studio takes a cut from it. It still works. Also creating this in game marketplace and creating a used marketplace could entice more players to play the game and that in the end would make more money. Also limited edition items would work. There is a lot there that you never talked about that could make a game work extremely well on blockchain. Even I haven't said everything.

Ok so i am building a NFT game and i don't want people to be buying anything in the game exsept for land (where you can build a house a business etc) and this is free to play not aviting it as a play to earn as its not how people can earn money is from making stuff looting stuff from enemys and searching for stuff you have a chance to get a rare items or even better then you can sell them to other players (Time in the game could mean money) so how I am thinking this will work for most people is

- Player 1: that grinds in the game for 8h day have more chance of getting rare items
- Player 2: has only 1-2h day/week but can buy that item from Player 1 making Player 1 money from his hard work
- The game makes money from the transaction 10-20%

Mmmm...interesting.

Great video , concordo com tudo !!!

If your business depends on constantly creating new memebers, that's called a pyramid scheme.

Agree with the points in this vid, but here is my idea:

Developers could use this to cultivate brand loyalty.

Make generic attribute buffs the tokenized aspect that is able to be transferred across games from dev. They could manifest as gangsta gold in gotham, a pocket watch in the old west, and a crystal in fantasyland.

The dev could make money from initial sales and from porting from game to game/some type of "socketing" process.

This would generate revenue and also create brand loyalty. A gamer that has developed a 10k$ arsenal with one developer would be reluctant to try a competing dev's game and be reduced to pleb status.

This would also give 🐋 plenty of wells to throw their $ at without becoming completely PTW.

Great breakdown as always. Thx!!!

False, not all play to earn games die. Look at Castles the NFT Game, giving away "cash" Wax token prizes and going strong.

😀😀😀

Nice

Not fun at all, "rn". It'll boom again soon, wait for the new idea.

Nft games must die.

Blockchain solves no problem anyone has better than any already existing technology.

Earn should be optional, this type of game are scam.

Much information. Caw!

We are already in the big crash, Inflation is a catastrophe. This CPI report is a colossal failure. To bring the housing market to a halt, the FED will have to pull all the stops. The unfortunate issue is that other markets are being decimated. If you want to stay green, you have to rely on a lot of diversification. Currently up 14% and being careful. Still a better deal than leaving it in a savings or checking account yielding 0-1 percent interest.

Great content, really enjoyed it.

How about making an actual good game and where there's a specific currency that you only get from players(from grinding and stuff). That has actual use in-game like getting characters to a certain level or something along the line. That currency can be exchanged with real-world money from players. But the game developer/publisher will get some cuts from that. obviously There will also be something you buy from the game developer/publisher like cosmetics stuff. Battlepss etc.

That's a pretty great video to sum up all the problems with blockchain gaming. I would add your missing a revenue. Transactions with it's game token and the gaming developers collecting transaction fees. Gala Games own L1 network I can see catching these as an example. Also secondary market commission sales or fees.

wtf minecraft pay to win???

Bald man brought me here

Fantastic video

Minecraft P2W?????????? LMFAO WHAT

Ah yes,
THE game known for p2w,
Minecraft.
🤦‍♂

Great video; clearly articulated points.

While not blockchain PTE, Entropia Universe is what other PTE developers should strive to be like.

Sent here by Asmon the Balding One, great vid!

Did you just say MINECRAFT is PAY 2 WIN?
Out of ALL the games out there, you choose MINECRAFT?
bro...

The argument about player motivation changing when the reward structure is shifted from playing to financial is so on point its scary. It would be difficult for a player used to financial reward from enjoying even a well designed play for fun game.

You need to scale back and think realistically how it is actually hard to make a popular multiplayer game. Tons of expensive af MMO and PvP-match games made by proffessionals have failed to capture an audience for long period of time, so even if you are create a game with best of intentions, there's extremely low chance for it to succeed. You have no idea how many multiplayer games i liked closed shop because there weren't enough audience for it. And that's without any you yours blockchain earn2play bs.

Imagine this: we have an abstract filthy rich filantropist who want to create a popular fun multiplayer game from scratch and can afford to loose money just for the sake of art. Even in that case, even by hiring proffesional dev team and having infinite budget - it is not at all guarantee that the game will resonate with players.
Amazon tryed to get into big videogame business and failed again and again, even by having infinite money to spare.

Also we already have play-to-earn PvP games with sponsors. That's called e-sports

I like how most of the comment section - particularly, the top voted comments (probably boted) - is filled with shilling for exactly the very same unfun garbage P2E games the video talks about, while they try to claim that the points the video made do not actually apply to them

I'm sorry, but I don't think P2E will ever succeed or have a place in gaming.

1) While I agree that an ad supported game would be the most favorable, I don't see that happening. From what I know it's hard enough to keep purely ad supported games up and running, to cover development, hardware and software costs. I don't think it will ever be possible to run a game only on ads and to pay your players (a decent amount) at the same time. You will always have to rely on players spending money while others get some

2) Since you mentioned it, no matter which model a game chooses, there is no way ever every player of a P2E game will actually earn (a decent amount of) money off of it. Simply because of 1). And as for any other model: because of whatever some people spend, first studios / publishers / hardware / software licenses have to be paid, then whatever is left can go to some players.

3) The name "play to earn" already implies it's a business model. When you advertise a game as "play to earn", of course people will join it expecting to make money off of it. Granted, it still could be fun to play, but that's not its first and foremost purpose.

4) No game needs blockchain tech. Blockchain has one property which sets it apart from other ways to store data: the blocks are immutable. But to offer this feature, many other important properties are lost, like efficient searching of the data. And I'm sorry, but no game is or will ever be so important, that the immutability of its data is anywhere near relevant to require implementing it on a blockchain. Any kind of assigning ownership or trading between players can be and has been done plenty of times just using an ordinary database.

The biggest problem of P2E games is, they don't produce anything of value. Of course there may be people who see a value in spending (lots of) money on virtual items, but that is usually whales, not the majority of the player base, which every F2P game illustrates perfectly.

There have been games like Diablo 3, back when it had its real money auction house, which were primarily built towards "normal" gamers who buy a game and play it for fun, not expecting a payout. An average player could just play the game for fun, while some made a quick buck selling more rare / valuable items on the marketplace. However, once monetization seeps into games like this, usually it affects gameplay in a bad way. As far as I remember for D3, it meant that it was very hard to obtain the items you needed / wanted for your character, and it required a lot of grind and luck - or the (real money) auction house. This destroys any fun to be had with the game, and we're back to square one.

Bots are causing inflation? In the game?