Web3 Games Urged to Shift From 'Play-to-Earn' to 'Play-And-Earn' Model for Greater Adoption
Summary:
Gracy Chen, Bitget's managing director, urges Web3 games to shift from a "play-to-earn" model to a more interactive "play-and-earn" scheme to expand their user base. She states that the current strategy, which overlooks gameplay for monetary incentives, needs changing. With more Web2 game founders entering the crypto gaming space, the industry is slowly shifting to more player-centric games. However, Chen warns against investment in low-quality GameFi projects and advises focusing on user-centric strategies and finished products. The report also notes an increasing interest in Web3 games among large gaming companies.
Web3 gaming should transition from a "play-to-earn" model to a "play-and-earn" framework to pull in more mainstream crypto users, states Gracy Chen, Bitget's managing director. She critiques the current strategy of Web3 games, which puts too much emphasis on the monetary aspects while neglecting the actual gaming experience. To lure Web2 gamers by 2024, Web3 games must enhance their focus on gameplay, she articulates in a conversation with Cointelegraph. Earlier, players were attracted by the 'play-to-earn', as illustrated by Axie Infinity. But the shift needs to be towards 'play-and-earn'.
Web3 games are generally seen as lacking user focus and engaging gameplay, with many past games primarily serving as vehicles for profitable crypto rewards. However, with Web2 game creators entering the cryptogaming arena, there seems to be a move towards more player-focused games during this bullish cycle, Chen highlights.
Despite her enthusiasm over more user-centric games, Chen informs that the majority of today's GameFi projects remain low quality but carry high valuations. She advises investors to channel their investments towards games with complete products and user-focused strategies.
Evidence of a significant interest in GameFi is indicated by 72.5% of big gaming companies investing in Web3 games. A 2023 CoinGecko report reveals that of the 40 largest gaming firms, 29 have stepped into Web3, though only 24.1% (seven out of 29) are developing blockchain games.
In early February, the Pokemon-inspired GameFi project Pixelmon secured a seed investment of $8 million from a number of Web3 games. Prior to this, more than 60% of the project was bought by LiquidX, a Singapore-based Web3 venture capital studio, for a cool $40 million in September 2022. Despite the significant financial backing, Pixelmon's inaugural game, 'Warriors of Nova Thera', only entered alpha testing in April.
Web3 games, despite their lack of user-centered projects, made up more than 30% of all decentralized application (DApp) activity during 2024's first quarter, according to a report by DappRadar released on April 11.
Published At
4/30/2024 3:07:00 PM
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