Play-to-earn (P2E) is a new online business model capturing the gaming industry’s attention — but what are the exact pillars on which it stands? Let’s check it out.
It is no secret that the gaming industry has seen a lot of changes over the last few years. In recent years, the evolution has been taking place at a fast rate, especially since the concept of “Play to earn, watch to earn” has become increasingly popular.
However, among all the concepts, play to earn outstands everybody. But ever wondered what P2E is? and what are its pillars of existence?
QUICK OVERVIEW OF WHAT P2E GAMES ARE?
In PLAY TO EARN games, players are given the opportunity to generate income as they play a game. Yes. There is nothing complicated about the game. Your only task is to complete the tasks given to you in the game, earn rewards, and follow all the rules.
When you achieve a specific milestone in the game, you will receive either some tokens or in-game coins, or any other kind of bonus based on the achievement. As a player, if you manage to earn any digital assets during the course of your game, you can gain real value for those assets. As these assets in the game can be resold and can be held by the player via a crypto wallet.
Now that we know what P2E games are, let’s shift our focus to the real deal, “THE PILLARS”:
THE PILLARS OF P2E GAMES:
There are six fundamental factors that determine whether a P2E game will stand up in the market or not!
01. Marketability: This measures the size of the audience and how appealing the game is to them. As a rule of thumb, the more marketable the game is, the lower the cost to acquire a new user will be. In addition, the larger the potential market for the game could be.
02. Monetization: The monetization process measures the likelihood of users making a purchase and their willingness to spend per purchase. Game developers who are able to keep players engaged will be able to generate more revenue by making their games more monetizable.
03. Keeping players engaged: Retention refers to how likely players are to stick around for the duration of the game. Any game that has a high retention rate has a better chance of monetizing its users since those players keep returning.
04. Economic Sustainability and Player Earning Power: These two measures indicate the stability of the economy in a game, and therefore the prices that affect players’ earning potential. The more stable the game’s economy is, and the more chances players have of earning money, the more likely they are to play, stay and invest in it.
05. Marketplace Trading Volume and Minting Power: P2E games offer a new monetization avenue; minting power determines how much a game can charge for newly issued non-fungible tokens. A fresh NFT with a higher price tag is more likely to generate revenue for the company.
A game’s marketplace trading volume indicates the volume of transactions that occur in the marketplace; the higher the volume, the higher the revenue potential. It is reasonable to charge a higher fee for transactions if your game can earn the player a lot of money.
06. Perceived Longevity: This is an important one. According to players, perceived longevity is a measure of how long the game will last. The higher and more stable the price of NFTs will be the greater the belief players have in the longevity of a game. Investing in a game that doesn’t look like it will be a flash in the pan will attract players.
All these five pillars are necessary for a play-to-earn game to be successful, but they also have to be balanced carefully. Currently, the play-to-earn market is still in its infancy and there is a growing suspicion that there will be other, additional pillars coming into play at some point in the future. In the meantime, take note of these six important pointers.
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