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The massive growth of play-to-earn gaming will adjust the economy: panel

What will happen when a bear market hits blockchain gaming, a sector that has never really seen a downturn?

The most obvious game to watch is market leader Axie Infinity, the game of teams of cute playable characters competing against each other much like Pokemon.

“Right now I can see that the Axie family is extremely strong. It’s not going to go away, ”said Ben Heidorn of Blockade Games, the company behind the NFT-based Neon District game, on Thursday at NFT.nyc, the digital collectibles conference held November 2-4 in New York.

Bear market

If there were to be a bear market in crypto anytime soon, as many are expecting, Heidorn knows that no one really knows how this will affect blockchain games that have made so great strides in recent years. He predicted that the most popular blockchain game to date would survive successfully.

This reflected the overall optimistic mood of the Play-to-Earn panel on the last day of the conference. As digital items increase in value in games, panellists predicted that games will adapt the world economy to them, from enhancing the global notion of a minimum wage to boosting economies in developing countries.

Heidorn shared the stage with Jason Chapman from Konvoy Ventures and David Zastrow from Axie Infinity on stage at the Palladium Theater, one of the multiple venues where NFT.nyc was held.

Game monetization

Play-to-earn is a new way to monetize video games made possible by cryptocurrency and blockchain technology. In its purest form, developers can publish a game that includes in-game items and currency that players earn, which can be exchanged for either other items or cryptocurrency outside of the game.

When a game is good enough it adds value to those digital assets, which causes the developers’ own treasure troves to increase in value so that the game is worth making in the first place.

In all of these games, “the end goal is the same, to give people the opportunity to change their own lives,” said Heidorn.

The story goes on

100x

Panellists agree that these economies will evolve quickly. “Play-to-earn in Axie or Neon District is an experiment,” says Heidorn. We won’t be able to predict how the economics of games like these will change over time as this sector grows in popularity.

Zastrow estimated that the current size of the decentralized gaming space is 2.5 million players and predicted that people in countries like South America and Africa would soon discover blockchain games, expand the player base and quickly become industry leaders. Chapman estimated that 100 million players would appear in the next few years.

“In the next few years it will be 100 times what it is today,” said Heidorn.

Great studios

The question is, what kind of games will these players be drawn to? Nobody expects it to be an Axie Infinity world forever. The ongoing discussion in Web3 gaming is when blockchain games will reach mainstream video game quality, known as triple-A games.

Heidedorn pointed out that, for example, Ubisoft (a big studio) has been in the room for years, but it’s complicated.

“The TripleA model is – you can’t just attach a blockchain to it,” said Heidorn. “If the assets in the game are of any use, you will have to completely reorganize your economy.”

Therefore, he expects triple-A quality to come more from the existing companies as more and more funds flow into blockchain games and studios are built more thoroughly.

“I know that there are teams that have massive triple-A talent right now,” said Heidedorn.

Not welcome

Meanwhile, Steam, the main platform for game distribution in traditional games, has stated that NFTs and blockchain games are not welcome.

“I was angry. I love valve. I respect Steam and everything they did for the community, but they missed the boat, ”Chapman said.

However, Heidedorn predicted that it will only be temporary. “At some point they will give in and the blockchain will return to the platform,” he said.

One model that is heavily used in mobile gaming is known as free-to-play. These games are open to anyone to try, but to be successful, players usually have to purchase in-game items. Heidedorn pointed out that around 2% of gamers buy a lot of items and end up subsidizing the games for everyone else.

However, if these items become something people can speculate about, he predicted that the proportion of players purchasing items will massively increase. This is one of the ways blockchain is making game development a lot more doable.

Chapman said that this increased power for players is one of the things he likes so much about this industry. The players can share in the advantages of successful games. People have more opportunities to find their way around the world.

The blockchain gaming industry “trains gamers on what to expect from their games,” Chapman said.

Read the original post on The Defiant.

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