In creating play-to-earn games within a dynamic and profitable economy, developers cannot afford to only focus on profits. Of course, the game players want to get more rewards. Still, they also understand that that depends mainly on their activity within the game. Meanwhile, the first lesson to learn is how the NFT gaming technology works and who holds the stakes.
The play-to-earn game’s technology is based on shared ownership or partnership between the players and the developers. That is, the players are eligible to own and hold valuable assets within the play to earn games economy and be able to trade them legally. Another implication is that it brings more players into the game environment and creates a demand for the collectibles.
The Developers Focus on creating Play-to-earn games
As the play-to-earn games grow in popularity and register more new active players, the NFT collections also grow. And when that happens, the profits the developers also make increase. However, before the game’s full launch, the developers must have invested some cost for design and launch. So, repayment of such fees is the minimum target that every developer expects.
The developers’ primary focus is to recover the invested cost into the game. And every time a player makes any transaction on the game, the developer makes some money. Therefore, you will find developers creating multiple avenues for exchanges and trading within the competition among the players. For example, the developer can make up to a 5% royalty fee each time a skin NFT is sold on the game.
While the trading is exciting for the developer due to profit-making, he must also ensure trades are safe and secure. The developer makes some money when a player sells any NFT token to another player. And that profit is not just a few times but continues indefinitely for every trading.
Developers’ actions on play-to-earn games
According to the analogy above, every developer must seek a way to set a profitable fee within the game for trade cuts. On the other hand, they should encourage more players to carry out these transactions and trade their assets. In some games, new players will have to buy the initial assets required to enter the competition from existing players.
A similar principle applies to every typical game on the blockchain network. But a good question will be what happens to the games on the existing cryptocurrency network? How can the developers make money? The earning approach works smoothly when the developer uses the native cryptocurrency approach.
But it will take a different method to get more deals when it comes to using the existing cryptocurrency approach. One recommended way to make it happen is to display adverts to players within the game environment. At this point, the developer focuses on keeping the players engaged with the game for as long as possible. The more time the players spend within the game environment, the more the chances of the developers getting revenue.
Why are Play-to-Earn Games so popular?
The emergence of play-to-earn games has brought about an undeniable shift in the gaming experience and profit-making enterprise. These changes are evident in the developers’ effort to create stunning games and the players’ perceptions. Players will gradually begin to realize the potential value of their endeavors and measure their enjoyment by the reward value.
However, the developers should note that players can sense when the gaming economy is becoming greedy. At the same time, communication is essential to their belief in the system, and a one-way direction will not suffice. Meanwhile, the players also want to own assets that give them a stakeholder’s feeling.
The players usually want to be involved in the game economy by owning digital assets. In addition, they contribute their quota to ensure the assets’ value increases. On the other hand, not all the players are concerned about the robustness of the game. Instead, they prefer to focus on making money and more money from their playtime.
Play-to-earn games in Developing Countries
When it comes to managing the game economy, we can also compare the economies of developing countries with developed countries. We can achieve that by focusing on the developing countries where many players are more focused on making a living on gameplay. A typical example of such an experience is that of Filipinos in the Philippines.
Here is how the story goes for the Philippines: it all started when the pandemic struck the world in 2020. The Philippines’ unemployment rate increased to 40%, while the minimum wage in the country was still meager. According to research, the average income in the Philippines was about $230 a month. But then, the Axie Infinity happened in the Philippines.
It allowed players to begin earning from playing the game, a phenomenon initially unknown to many. When the players started in 2020, each could make up to $1000 monthly from active playing. All they need to do apart from active play is to farm more in-game SLP currency. As you would expect, the population of players on the game network proliferated.
As the game grew in popularity, it became more prominent and evident. It became a massive phenomenon that the Philippine government noticed that many people have started making a living on it. In response, the government announced to the game players that they must start paying taxes. However, one may still wonder how the Filipinos got into the game.
Earning Potentials of developing countries on Play-to-Earn Games
One of the fundamental questions that one may consider is how the Filipinos could afford to start the game. Play-to-earn games such as the Axie Infinity have a minimum entry fee or the essential assets to start the game. In the case of Axie Infinity, every new player must buy three axies to start the game. Now, not all players can afford the initial investment into these games.
What then is the solution? To overcome this barrier, players come together to form an NFT rental community known as guilds. Each district contains different players and would-be players. The general idea is for Axie owners to be able to rent out their NFTs to players at a meager cost. Players can earn more cryptocurrency and share profits with the owners as they play.
On a final note, it is essential to understand to have a full grasp of play-to-earn games. Hopefully, the contents of this article have given you a better understanding of the gaming economy. If you are considering your chances on play-to-earn games, let’s discuss.