Rise and Hype of Play-to-Earn

50 Years of Gaming History, by Revenue Stream (1970-2020)
Source from Visual Capitalist: Captures the growth of gaming industry.

In a time of uncertainty in the world where the stock market is trending down, amid a global pandemic, and the fear of inflation – gaming is looking like a striving cockroach in the nuclear wasteland. The gaming industry has grown year-over-year with record-breaking revenue as the other traditional industries have been affected by the global pandemic.

Three decades ago, the gaming industry was still in its fancy, serving niche groups at malls in the form of arcades. Since gaming is intrinsically tied to technology, the growth has been a quantum leap. It has surpassed many industries in the entertainment sector from movie studios and national sports media as many people’s main go-to recreational hobby.

However, over the last decade, many gamers and developers have felt disenfranchised with game publishers becoming more corporate with monetization-driven business models to stiffen progress and introduce artificial roadblocks until players use their credit cards to overcome a small bump or cosmetic skins.

Some gamers have utilized their medium and created a career from it; You-tuber, influencers, streamers, and professional eSports players. This has brought the idea to many players of earning from their gaming pastime.

Blockchain technology introduced many new concepts of earning like NFTs, cryptocurrency, and Play-to-Earn. Many have seen the opportunities and some have already leaped head first with time and a large sum of money invested. There are a fair amount of success stories while many are still waiting for more accessibility to come in.

The reality is currently the industry for P2E (Play-to-Earn) is still in its infancy. Hype and cases of overnight fortune are pushing many to go forth but far from what many hopeful players are experiencing. The ones that get in early or the insiders who partner with the right influencers to drum up excitement are usually the ones that take home the initial big dollars. Other pain points are from over-promised projects and rug pulls that left many investors and fans of the project being left out in the cold.

Like many revolutions, there will be growing pains. As things move toward more mainstream, regulations and safety nets for more customer friend products are on the horizon. Creative and experienced developers will be creating a more innovative ecosystem where assets will blossom as the product, platform or brand grows with an incentive for holders to stay loyal and not just to do a flip on newly released NFT assets.