Play-to-Earn vs. Play-and-Earn: What Are the Differences?

The video game industry has undergone several economic evolutions. Traditional models relied on one-time purchases or subscriptions. The rise of digital has introduced microtransactions and free-to-play games funded by in-game purchases. With blockchain, new systems have emerged. Play-to-Earn (P2E) allows players to earn cryptos or NFTs by playing, while Play-and-Earn (P&E) prioritizes entertainment while offering optional gains. These models transform the player experience and the economics of video gaming. This article explores their differences, advantages, and limitations. It also analyzes their impact on the industry and the challenges they face.

Understanding Play-to-Earn (P2E)

Play-to-Earn (P2E) is based on a business model where players earn monetary rewards by playing. This system has gained popularity thanks to blockchain technology, which allows for the securing and authenticating of digital assets.

The fundamental principles of Play-to-Earn

The P2E model gives players the opportunity to earn cryptos or NFTs by completing specific tasks within a game. These rewards vary depending on player involvement and game mechanics. Some games require simple actions, like completing quests, while others rely on strategic competitions.

One of the key elements of P2E is the ownership of digital assets. Unlike traditional games where earned items remain under the control of the publisher, P2E games allow players to actually own their assets. They can be traded, sold, or used in other compatible games. This ownership brings a new dimension to gaming, transforming virtual items into goods with real economic value.

The advantages of the P2E model

P2E offers several advantages for players and the video game industry.

Firstly, this model allows for monetization of gameplay time. Players no longer play solely for fun but also to generate income. Some have managed to make P2E their main source of income, especially in countries where economic opportunities are limited.

Next, P2E fosters a broader economic inclusion. Players from struggling regions have found in these games a way to improve their standard of living. Axie Infinity, for instance, has enabled thousands of players in the Philippines to earn an income during the pandemic.

Finally, decentralization and ownership of assets enhance player autonomy. Thanks to blockchain, they can freely trade their items and manage their assets without relying on a central company. This model brings greater transparency and eliminates the risks of censorship or arbitrary account removal.

The drawbacks and challenges of P2E

Despite its advantages, P2E presents several challenges that limit its widespread adoption. The first issue relates to repetitiveness of gameplay. Many P2E games focus more on rewards than on the gaming experience. Players often perform repetitive tasks to maximize their gains, which detracts from immersion and enjoyment.

Next, P2E faces excessive speculation. Some players and investors buy digital assets in hopes of reselling them at a higher price. This dynamic creates economic bubbles where the value of items relies more on speculation than on their utility in the game. When demand drops, assets lose value, leading to financial losses for players.

Finally, the economic sustainability of P2E games remains a central question. Many of these games rely on a constant influx of new players to maintain rewards. Without a viable and balanced business model, these games risk seeing their ecosystem collapse in the long term. Some projects have already failed due to ineffective management of their internal economy.

Understanding Play-and-Earn (P&E)

Play-and-Earn (P&E) differentiates itself from Play-to-Earn (P2E) by its player-centric approach to enjoyment. It integrates financial rewards without making them the main objective. This model prioritizes an immersive and engaging experience, where gains remain a supplement rather than an end goal.

The fundamental principles of Play-and-Earn

The Play-and-Earn model is based on quality gameplay. Players engage in adventures, battles, or strategies without solely focusing on profitability. Unlike P2E, this model does not compel users to perform repetitive tasks to maximize their gains.

The rewards naturally integrate into the game. They do not disrupt the experience and do not impose a constant profitability logic. Players can earn NFTs or cryptos, but these gains remain secondary. This approach attracts a broader community, including gaming enthusiasts and not just investors.

The advantages of the P&E model

Play-and-Earn offers several advantages for both players and developers.

First, it provides an immersive and entertaining experience. Developers create rich universes where the enjoyment of playing takes precedence over monetization. Game mechanics encourage exploration, competition, and progression without financial pressure.

Next, this model attracts a wider audience. Unlike P2E, which often targets players looking to generate income, P&E appeals to fans of classic video games. Users do not feel obligated to invest or play to maximize their gains. This diversity allows games to reach a broader and more stable audience.

Finally, Play-and-Earn fosters better retention. Players remain engaged in the long term because they genuinely enjoy the experience offered. They do not abandon the game when rewards decrease, unlike P2E games, where profitability heavily influences engagement.

The drawbacks and challenges of Play-and-Earn

Play-and-Earn also presents challenges, especially for developers. The first issue concerns the balance between gameplay and rewards. Creators must find the right middle ground between an engaging experience and viable economic mechanisms. A game too focused on gains risks resembling a P2E, while a game that limits rewards too much may not interest users seeking financial incentives.

Moreover, financial gains remain lower than in the P2E model. Players cannot rely on P&E as their primary source of income. Since rewards are secondary, gains vary depending on gameplay time and individual performance. Some users may find this model less attractive if they are seeking immediate profitability.

Finally, developers must create rich and engaging content. A P&E game cannot rely solely on the economic aspect. It must provide a comprehensive experience, with well-thought-out mechanics and a captivating universe. This requirement entails higher production costs and careful management of the game ecosystem.

Play-and-Earn represents a more balanced alternative to Play-to-Earn. It highlights the enjoyment of gaming while offering moderate earning opportunities. This model attracts a broader community and ensures better retention.

Comparison between Play-to-Earn and Play-and-Earn

The Play-to-Earn (P2E) and Play-and-Earn (P&E) models present fundamental differences. Each has its own goals, effects on user experience, and economic implications.

Main Objectives

The Play-to-Earn emphasizes revenue generation. Players seek to accumulate cryptocurrencies or NFTs by performing specific actions in the game. Developers often design these games with integrated reward systems to attract a player base motivated by financial gain.

Play-and-Earn, on the other hand, prioritizes entertainment. The main goal remains the enjoyment of playing, with opportunities for earnings as a complement. Developers strive to create engaging experiences before integrating economic elements. This model targets a broader audience, attracting both traditional gamers and crypto enthusiasts.

User Experience

P2E offers a gameplay that is often repetitive. Players must complete specific tasks to maximize their gains. These actions include collecting items, combat, or completing missions. Some games impose an optimized strategy to ensure stable income. This structure can lead to fatigue if the game does not renew its content.

P&E offers a more immersive experience. Developers integrate rewards naturally into the game, without making them the core of the system. Players evolve in a more varied environment where the enjoyment of playing remains the priority. Financial gains do not dictate player behavior, allowing for greater diversity in gameplay.

Sustainability and Long-Term Engagement

P2E relies on a model where earnings are the main motivation. If rewards diminish or if the internal economy of the game collapses, players leave the platform. This dependence on income makes these games vulnerable to market fluctuations. Several P2E projects have experienced a rapid collapse after a period of high speculation.

P&E offers better player retention. The attachment to the game primarily relies on the quality of gameplay. Players remain engaged, even if rewards decrease. This model fosters a more stable community, with social interactions and events that enhance long-term engagement.

Economic Implications

P2E creates internal micro-economies where digital assets circulate among players. These ecosystems require rigorous management to avoid inflation of rewards and a drop in asset value. Some games struggle to maintain economic balance, leading to losses for players and decreased interest in the project.

P&E generates additional income for players without imposing a dependency on monetization. Developers diversify their revenue sources through sales of digital items and commissions on transactions. This model limits risks associated with speculation and ensures a more stable economy.

Case Studies and Concrete Examples

Some games perfectly illustrate the differences between Play-to-Earn (P2E) and Play-and-Earn (P&E). Their success and challenges allow for a better understanding of the issues surrounding these models.

Axie Infinity (P2E)

Axie Infinity represents one of the first major successes of Play-to-Earn. This game relies on buying, breeding, and battling creatures called Axies, which are NFTs. Players must own at least three Axies to participate in battles and earn SLP tokens, which can be exchanged for real currency.

The game achieved global success in 2021, attracting thousands of players, particularly in emerging countries. Many saw an opportunity for stable income. However, the game’s economy suffered from reward inflation and excessive speculation on NFTs. The value of SLP tokens plummeted, reducing player interest. The P2E model showed its limits in the absence of sustainable economic balance.

Gods Unchained (P&E)

Gods Unchained adopts a Play-and-Earn approach, prioritizing gameplay over monetization. This collectible card game operates similarly to Hearthstone, with advanced strategy mechanics. Players can obtain cards in the form of NFTs, but these rewards remain secondary.

The gaming experience relies on confrontations and mastery of strategies, rather than on the pursuit of financial gains. Players can trade their cards, but the game does not require any initial investment. This approach ensures greater stability and better player loyalty. Gods Unchained shows that P&E can integrate rewards without compromising the quality of the game.

Play-to-Earn (P2E) emphasizes profitability, while Play-and-Earn (P&E) prioritizes the enjoyment of the game with earnings as a complement. P2E attracts players motivated by income but suffers from economic instability. P&E, on the other hand, ensures better retention through a more immersive experience. The future of Web3 gaming will depend on the balance between these models. Developers will need to create sustainable and attractive games. Players will have to choose the model that matches their expectations, considering both the enjoyment of the game and economic opportunities.

Luc Jose A.

Diplômé de Sciences Po Toulouse et titulaire d'une certification consultant blockchain délivrée par Alyra, j'ai rejoint l'aventure Cointribune en 2019. Convaincu du potentiel de la blockchain pour transformer de nombreux secteurs de l'économie, j'ai pris l'engagement de sensibiliser et d'informer le grand public sur cet écosystème en constante évolution. Mon objectif est de permettre à chacun de mieux comprendre la blockchain et de saisir les opportunités qu'elle offre. Je m'efforce chaque jour de fournir une analyse objective de l'actualité, de décrypter les tendances du marché, de relayer les dernières innovations technologiques et de mettre en perspective les enjeux économiques et sociétaux de cette révolution en marche.