Gaming Studios Lure Players with Crypto Incentives Despite Backlash: Future of GameFi Discussed
Summary:
Despite backlash against "tokenomics," gaming studios will likely persist in using airdrops and incentives to draw players, say industry executives. However, to retain players, games must also provide an entertaining experience, according to leading figures in the gaming sector. Illuvium recently released 200,000 ILV tokens as part of a six-month Play-to-Airdrop initiative, demonstrating the continued use of token-based incentives. Experts believe GameFi is about a decade behind traditional games in terms of development, but a rapid advancement is expected in the blockchain gaming industry. Gaming leaders predict the release of a AAA-standard game in the GameFi sector by 2024.
In the face of backlash from some players against "tokenomics," executives in the gaming industry anticipate that developers will persist in leveraging airdrops and additional incentives to reel in gamers. Industry titan Kieran Warwick, founder of Illuvium, shared in a Cointelegraph interview that this is an effective strategy for garnering market interest. Yet he cautioned that games failing to provide an entertaining experience are destined to fail. Warwick stated that if a game's marketing overshadows its quality, player retention would suffer.
Another figure in the gaming sector, Shi Khai Wei, founder of venture capital company LongHash Ventures, reinforced the necessity of enjoyable gameplay, noting the potential for Cryptocurrency mechanisms like airdrops and play-to-earn to draw in users. However, Shi emphasized sustaining these users requires fun gameplay.
Axie Infinity has been one of the faithful success stories among blockchain games. Nevertheless, a substantial $650 million cybersecurity breach, among other challenges, made it difficult for its developer, Sky Mavis, to retain players post bear market. Shi highlighted that games that achieve a sustainable financial model and successfully attract the right user profile are the ones that will thrive in the long run.
Warwick conceded that the use of token incentives might attract airdrop farmers rather than genuine gamers. Yet, this is a necessary compromise for expanding the player base and gaining attention from existing gamers.
His comments follow Illuvium's recent release of 200,000 ILV tokens, totaling around $25 million, as part of a six-month Play-to-Airdrop initiative. These airdrops will be attainable in various Illuvium games and are set for a release on IMX—an Ethereum NFT-centric network—come end of May.
Gabby Dizon, CEO of Yield Guild Games, suggests that while airdrops could expedite GameFi adoption, not everyone is out to make a profit. In contrast, some players gain social status from these transactions, akin to buying luxury items like cars or high-end fashion.
Dizon and Warwick speculate that GameFi is about 14-15 years behind traditional games, but the disparity will close rapidly as innovation in blockchain continues to outpace conventional gaming development. Warwick notes that a significant portion of the blockchain sector's talent pool comes from mainstream gaming studios, allowing for quicker growth and innovation.
However, challenges remain as building intellectual property through meaningful storylines and universe crafting requires time and cannot be rushed. Warwick observes that leading gaming studios are halfway through the process, which could take up to six to seven years.
In the wait for a GameFi project capable of propelling the sector forward, Yield Guild Games aspires to facilitate such a future game by unifying blockchain games and gamers through a decentralized network of gaming communities.
Wei is optimistic about the GameFi industry's future, predicting the unveiling of a AAA-standard game in 2024.
Published At
4/23/2024 6:20:27 AM
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