The Evolution from Play-to-Earn to Play-and-Earn

The video game industry has experienced several economic evolutions. The first models relied on the one-time purchase of games. Then, subscriptions and microtransactions allowed publishers to diversify their revenues. The emergence of blockchain has introduced the Play-to-Earn (P2E) model, where players earn monetary rewards while playing. This system has evolved into the Play-and-Earn (P&E) model, which prioritizes the joy of gaming while offering earning opportunities. This article explores this transition, analyzes its impacts, and examines the future perspectives of these new economic models in Web3 gaming.

The Play-to-Earn and Play-and-Earn models

The Play-to-Earn (P2E) and Play-and-Earn (P&E) models have transformed the video game industry by integrating economic mechanisms based on blockchain. These models offer players the opportunity to monetize their gaming time while influencing game design.

How Play-to-Earn (P2E) works

The Play-to-Earn model is based on a simple principle: players earn monetary rewards by performing specific actions in a game. These rewards often take the form of cryptocurrencies or NFTs, which can be traded on specialized marketplaces. This model relies on blockchain to ensure transparency and security of transactions.

Games like Axie Infinity, Gods Unchained, or The Sandbox popularized P2E. These games allow players to acquire digital assets they can use in-game or resell.

P2E presents several advantages. It offers economic opportunities to players and allows them to truly own their assets. However, this model poses challenges. Excessive monetization can harm the gaming experience. Some titles focus too much on financial gains, creating repetitive and less engaging gameplay.

How Play-and-Earn (P&E) works

Play-and-Earn prioritizes the enjoyment of gaming above all. Players participate in immersive experiences where financial rewards are secondary. This model seeks to avoid the pitfalls of P2E by integrating gains in a more balanced manner.

Games like Illuvium, Big Time, and Ember Sword illustrate this approach. These titles offer captivating gameplay with integrated earning opportunities in a natural way.

P&E offers a better balance between entertainment and monetization, attracting a wider audience. However, its integration requires more complex design, as it must maintain a sustainable economy while ensuring an immersive experience.

Key differences between Play-to-Earn and Play-and-Earn

The Play-to-Earn (P2E) and Play-and-Earn (P&E) adopt different approaches to monetization and gaming experience. These differences influence player motivation, game design, and the economic stability of ecosystems.

Player motivation

Player motivations vary according to the model adopted by the game.

In P2E, players primarily seek to earn money by playing. The competitive or playful aspect often takes a back seat. Some players treat these games as a lucrative activity, accumulating digital assets that they resell on specialized marketplaces. This approach attracts an audience motivated by profitability, but it can harm immersion and enjoyment of the game.

In P&E, motivation is based on entertainment. Players participate primarily to enjoy the game world. Financial rewards exist, but they remain a secondary bonus. This approach prioritizes long-term retention by maintaining an engaged community around gameplay rather than solely profitability.

Game design and quality

The design of a P2E game differs from that of a P&E game.

In P2E, the design often relies on financial incentive mechanisms. Developers integrate systems that allow players to mine, trade, or earn tokens based on their activity. These games may prioritize profitability at the expense of gameplay quality. Some games become repetitive as their model relies on a cycle of accumulation and reselling of assets.

In P&E, the design emphasizes an immersive gaming experience. Developers focus on storytelling, gameplay, and social interactions. Earning mechanisms are integrated naturally, without disrupting playability. This approach fosters richer and more attractive worlds, where players remain active for the pleasure of playing rather than purely financial motivations.

Economic sustainability and player engagement

Economic sustainability represents a major challenge for Web3 games.

In P2E, virtual economies are heavily dependent on the influx of new players and the value of tokens. A decrease in demand or a drop in prices can lead to an imbalance, making the game less attractive and sometimes unsustainable. When profitability decreases, players leave the platform, triggering a domino effect that weakens the ecosystem.

In P&E, the economy is based on a diverse player base, reducing dependence on revenues from digital assets. The main attraction of the game lies in its immersive experience, which guarantees constant activity even in the face of economic fluctuations. This approach offers increased stability and allows games to maintain long-term growth without relying solely on asset transactions.

The shift from P2E to P&E reflects a desire to improve user experience and build more sustainable economies in the world of Web3 gaming.

Factors leading to the shift towards Play-and-Earn

The evolution from Play-to-Earn (P2E) to Play-and-Earn (P&E) stems from several factors. Player expectations, ecosystem sustainability, and regulatory challenges have pushed the industry to rebalance the economic model of Web3 games.

Player feedback and expectations

Players are seeking more enriching gaming experiences.

In the P2E model, some games have emphasized monetization at the expense of enjoyment. Many players have expressed frustration with repetitive gameplays focused solely on token accumulation. Developers have understood the need to offer more immersive experiences, where enjoyment takes precedence over financial rewards.

Player engagement also relies on the balance between gameplay and earning opportunities. P&E meets this expectation by integrating reward mechanisms without compromising the gaming experience. This approach attracts a wider audience and fosters sustainable loyalty.

The sustainability of game ecosystems

Web3 games must ensure a stable economy.

In P2E, some virtual economies have suffered from inflation of rewards. Excessive issuance of tokens has caused economic collapses, making games less attractive. P&E seeks to create viable models where rewards remain balanced, and the value of assets is maintained over the long term.

Engaged communities play a key role in this transition. A game based solely on financial gains loses its appeal when the profits diminish. P&E fosters the creation of active communities that remain involved through captivating gameplay and social interactions.

Regulation and public perception

The Web3 gaming industry must adapt to regulations.

Cryptocurrencies and NFTs are subject to strict regulations, varying by country. Some governments impose restrictions on the exchange of digital assets, complicating the adoption of the P2E model. P&E, by focusing on gaming rather than speculation, mitigates these risks and aligns better with legal standards.

The industry’s image is improving thanks to this transition. P&E values user experience over immediate profitability. This approach reassures traditional players who are hesitant to adopt blockchain games. It also enhances the credibility of studios that favor more sustainable economic models.

Case studies: a few games illustrating the transition

Some games have evolved from Play-to-Earn (P2E) to Play-and-Earn (P&E) by adjusting their gameplay and economy. This transition has improved the player experience and ensured greater stability for gaming ecosystems.

Axie Infinity

Axie Infinity has long been an iconic model of P2E. Its economy was based on the buying, breeding, and selling of Axies, digital creatures in the form of NFTs. However, the game’s profitability plummeted when the supply of tokens exceeded demand.

To counter this problem, developers integrated elements of P&E. They enhanced gameplay and introduced new mechanics to encourage players to invest in the game beyond financial gains. This transition has increased player engagement and stabilized the game’s economy by reducing reliance on monetary rewards.

The Sandbox

The Sandbox offers a virtual universe where players can create, own, and monetize their experiences. Unlike traditional P2E games, The Sandbox has adopted an approach where content creators and players benefit from a decentralized and dynamic economy.

The P&E model manifests itself through rich interactivity. Players do not simply accumulate tokens, they participate in building a metaverse by purchasing digital land, creating games, and trading assets. This involvement has fostered a committed community, reinforcing the sustainability of the ecosystem.

Gods Unchained

Gods Unchained is a collectible card game that has evolved to integrate elements of P&E. Its model is based on strategic gameplay, where players truly own their cards in the form of NFTs.

The game prioritizes competition and strategy over monetary aspects. Players earn cards and rewards based on their performance, which encourages them to improve their skills rather than simply accumulate tokens. This model has promoted player loyalty and ensured a balance between entertainment and economic opportunities.

What are the implications for the future of gaming?

Play-and-Earn (P&E) is gradually establishing itself as a dominant model in the video game industry. This evolution transforms the player experience and alters the strategies of developers. Widespread adoption, technological innovations, and challenges to overcome will determine the future of this model.

The widespread adoption of P&E models

P&E attracts a broader audience by offering more engaging gaming experiences. Unlike Play-to-Earn (P2E), it does not rely solely on monetization. This accessibility appeals to traditional players, who prioritize quality gameplay above all.

The integration of P&E mechanisms could become a standard in the gaming industry. Developers are looking to reconcile entertainment and economic opportunities without compromising playability. This model could expand into various genres of games, promoting broader adoption by studios.

Innovation in game design

Technological advancements influence the evolution of P&E. Artificial intelligence improves in-game interactions, making experiences more dynamic. Augmented reality and virtual reality offer new perspectives to enhance player immersion.

The emergence of hybrid genres strengthens the diversity of experiences. Some games combine elements of RPG, strategy, and simulation, while integrating P&E mechanics. This evolution encourages the creation of new concepts, attracting diverse player profiles.

Potential challenges

Regulators are monitoring the integration of NFTs and cryptos in video games. The lack of a clear legal framework limits the adoption of P&E by major studios. Appropriate regulation could reassure market players and encourage their participation.

The volatility of tokens remains a major challenge. A sudden drop in the value of assets can affect the economic viability of games. Developers must design balanced ecosystems to prevent financial crises observed in some P2E games.

Traditional major studios are still hesitant to fully integrate this model. The distrust of players towards blockchain microtransactions hinders massive adoption. A balance between immersive experience and sustainable economy will be essential to convince these market players.

The evolution from Play-to-Earn (P2E) to Play-and-Earn (P&E) represents a maturation of the Web3 gaming industry. While P2E prioritized financial gains, P&E restores balance between entertainment and economic opportunities. This model attracts a broader audience, improves the stability of virtual economies, and promotes enriching gaming experiences. Developers must innovate to offer engaging games while maintaining a sustainable ecosystem. The future of Play-and-Earn will depend on regulation, the adoption by major studios, and the improvement of blockchain technologies. If these challenges are met, P&E could establish itself as a standard of modern gaming, combining immersive gameplay and balanced economic rewards.

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.