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Play to Earn is a genre of token-based games that features a player-owned economy using game assets represented by tokens and NFTs.

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Video games have changed the entertainment preferences of a generation. Since the introduction of tennis in 1958, the game has taken the world by storm, with games like League of Legends, Fortnite and Minecraft being played by millions of players around the world.

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In 2018, Reuters reported that gaming had overtaken entertainment media such as movies, television and music, and this meteoric rise showed no signs of slowing down. The Entertainment Software Association (ESA) estimates that 227 million Americans play video games—about 66 percent of the nation’s population. Spanning countless genres and devices, video games are a huge force in culture and entertainment.

Video game developers have created extremely diverse digital worlds, housing many game mechanics, visual aesthetics, and narrative experiences. Whether through compelling storytelling, pixel-perfect gameplay, or skill-based multiplayer dynamics, video games provide players with immersive interactive experiences that are difficult to replicate through other mediums.

Over the past few years, a new type of gaming experience known as play-to-earn (P2E) has taken over the blockchain ecosystem. This new gaming category offers in-game currency and ownership of projects powered by cryptocurrencies and non-fungible tokens (NFTs) that have real-world value and are directly linked to a larger, interconnected digital economy.

This article examines the impact of this fundamental shift in monetization from one game to another, with players receiving significant rewards for the time, effort, and money invested in games.

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In-game value refers to the appearance of in-game items that have real value. For standard play, game value has become an unstoppable trend. In fact, the traditional game economy model suggests that given the right context and environment, players will assign shared value to video game content, from gameplay to game performance and pure cosmetics.

Strong markets and the increasing value of rare in-game items in games such as Counter-Strike: Global Offensive (CS:GO), Valorant, World of Warships, Genshin Impact and others are evidence of increasing player value. Video games of various genres.

CS:GO is a popular, highly competitive multiplayer first-person shooter (FPS) game. In the traditional format, players join teams of five. As with all players, there are multiple options available, and the best sense of play and accuracy of aim will rise to the top of the leaderboard.

The most valuable cosmetics in CS: GO are sold for tens of thousands of dollars in non-game markets. Within the game platform, players can also purchase “stats” or loot boxes that distribute random gameplay elements. These items are cosmetic only, but the CS:GO playerbase values ​​rare items.

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Another genre of video games is the massively multiplayer online role-playing game (MMORPG), which provides players with items that give them an advantage in the game. These games often use a pay-as-you-go model where players who spend the most money and time get the most powerful attributes or items in the game.

However, unlike CS:GO, MMORPGs mostly have no official connection to the real-world economy, although they do have both in-game and unlicensed markets where non-game items can be exchanged for real money. Unapproved trading is common when players communicate outside of the game to trade peer-to-peer or use third-party sites that facilitate trading without permission from the game provider. This will result in in-game penalties and players assume the risk of engaging in such behavior. However, the demand is there and many players participate in many underground markets.

In “gachapon games” like Genshin Impact, which encourage players to keep spending on loot boxes to get the best items and characters, in-game play makes up a significant portion of the game developers’ revenue. Genshin Impact’s wildly popular gachapon model resulted in the game bringing in more revenue than any other game in its first year, showing the value of in-game merchandise as a driving force even in games without a player market.

Whether it’s a cool new skin as players destroy enemies in a skill-based FPS, or trying to get the most powerful items in the game through MMORPGs or Gachapon loot boxes, the fact that the true value of items in this game is real is clear. are created and captured by players. When deciding to purchase in-game items or loot boxes, players place a very real value on an intangible digital item.

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The concept of value in games often confuses players. Why do players rate in-game items so highly?

The main reason is that social motivations such as peer competition and social interaction, as well as factors such as escapism and stimulation, are a large part of why gamers play video games. Players often build communities around the games that best meet these essential needs, creating real value.

This can be understood by looking at the example of a traditional sport such as golf. At the basic level, golf can be played alone. Get a set of clubs, find a lesson, and you’re good to go. This is single player golf.

However, single-player golf gets an extra boost in multiplayer. With friends, golf becomes both a challenge and a social experience. Each golf shot becomes a fairway compared to the others and the skill level becomes apparent. Friends (or enemies) are made, social hierarchies begin to form, and gaming becomes increasingly important as a meaningful pastime.

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Social status in the golf environment is indicated by items such as clubs and clothing that both highlight and surpass net worth in terms of value. In singles mode, only the golf club makes the player’s shots better, stronger or more accurate. These golf clubs are now more valuable because they add to the social dynamic and competitive play. With this new impetus, items such as signed t-shirts and hats will become items with increased social and real value.

This is incredibly common in the elite professional athletics industry. From athlete-sponsored shoes to specialty apparel and sports gear, fans around the world are finding value in these collectibles, many of which go unused. Popular video games experience a similar effect in the form of in-game valuables and coins.

Players gather as a group for games that meet their needs in terms of entertainment and community. Whether it’s providing a fun competitive experience, offering a welcome distraction, or satisfying some other basic need, the value of a game comes from the integration of the game and its players. By integrating features into the right environment, player and game can work together to build a solid foundation for game value.

In the current model of the general video game industry, game content is controlled by a single entity. This site is game development, game purchase and original features of the game. This is usually called centralization – the concentration of control in the hands of one party or small parties.

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In this context, the game value generated by these online multiplayer games is mostly captured and managed by game developers or publishers, although there are some cases where it is shared to a limited extent. Furthermore, in all online multiplayer games, control of values ​​is inherently given to the game developer.

A clear example of this is a comparison of today’s popular multiplayer video games: Valorant and CS:GO. Both are skill-based FPS games, and all the items in the game are purely cosmetic and irrelevant to the game itself. However, CS:GO players have more opportunities to accumulate value and profit from the resources they invest in the game thanks to the many open third-party marketplace providers and the ability to sell local products. In contrast, Valorant does not allow the game to use third-party markets.

In CS:GO, well-designed game mechanics, a strong competitive player community, and third-party open markets all add up to the value of the game. Each in-game item will have a market value, players will be significantly rewarded with actual ownership, and game developers will benefit from the ongoing revenue generated by the passion for gaming.

The importance of open markets cannot be understated. In closed systems without a market, the value of a game is limited to the original purchase price of a specific game item, as shown in the Gachapon games example. A parallel example is a company that sells rare and valuable shoes, but completely prohibits third-party trading. By opening these projects to free market forces, a strong economy based on public needs can act as a money multiplier. The game company sets the same fixed price as before, but now the player can sell

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