New Business between Traditional and Play to Earn Game

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The advent of the GameFi game, Play-to-Earn, has brought along a new diverse and sustainable stream of revenue in the benefit of business and health of tokenomics.

In traditional games (non P2E) generate money from upfront charges in sales, micro-transactions and subscription pass. In 2021, global gaming grossed over $180B while blockchain gaming generated $20B. 

Axie Infinity is the biggest blockchain game, in popularity and revenue, making over $1.3B in 2021. Most of the revenue generated was thanks to their breeding and trading system. While other blockchain game companies are still only using traditional upfront sales or pre-sales in the form of NFTs non-fungible token in the form of in-game assets; like character, items, land, etc.

Here is a breakdown to compare business model for both traditional and blockchain gaming

Business Model 

Upfront sales is selling a product or service to customers before access to the product.

Freemium is zero or lower barriers to entry but customers can opt into spending for additional services or in-game items

Partnerships focus on working with brands and influencers to create content that requires payment to access. Typically require negotiation on fee structure on license, revenue share, co-development, etc.

Transaction is the charge of a fee for a service that enables or executes a transaction between two parties.

Subscription charges a fixed fee to access services for a period of time.

Advertising focuses on selling advertisers and companies your user’s attention and time by providing space to promote their product and services on the platform.

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Renting / Financing charges a fixed or variable amount to use or own an asset.

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Many blockchain games have implemented these but Subscription or Advertising.