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Amidst ongoing debate among gamers regarding the incorporation of “tokenomics” into gaming experiences, industry executives predict that gaming studios will persist in utilizing airdrops and other incentives to attract players.
Founders Share Their Views About Gaming Platforms
Kieran Warwick, founder of gaming studio Illuvium, emphasized the effectiveness of such tactics in capturing market share. He stated in an interview with Cointelegraph, “It’s a very easy way to get market share.”
However, Warwick also underscored the importance of prioritizing fun and gameplay quality in gaming experiences, asserting that games lacking in these aspects are destined to fail.
Warwick said, “The problem with that is if you’re using it as a marketing tool and you don’t have a good product to back it up, then your retention is abysmal.”
Shi Khai Wei, founder of venture capital firm LongHash Ventures, echoed this sentiment, emphasizing the critical role of enjoyment in gaming experiences. Despite the ability advantages of token incentives, Wei emphasized that sustainable economics and attractive gameplay are crucial for a recreation’s fulfillment.
Shi Khai Wei, “Crypto is very good at acquiring users because of incentives — we have airdrops, play-to-earn mechanics and speculative elements, but to keep the players there, you need to have fun gameplay.”
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Axie Infinity stands as one of the most outstanding achievement memories inside the realm of blockchain video games. However, challenges such as a $650 Million bridge hack have posed hurdles for its creator firm, Sky Mavis, in retaining users’ post-bear market.
Wei said, “Games that figure out sustainable economics, the right emission schedules, attracting the right kind of players and incentivizing the right kind of gameplay, those are the games that will survive.”
Wei emphasized the importance of implementing sustainable economics, attracting the right player demographic, and incentivizing enjoyable gameplay as key factors for a game’s survival in the competitive gaming landscape.
Idea To Make Money
While Warwick acknowledged that token incentives may attract airdrop farmers rather than genuine gamers, he views them as a necessary tool for expanding the player base. He highlighted the attention garnered from individuals active in the gaming space as a positive outcome of token incentives.
Warwick’s perspective aligns with Illuvium’s recent initiative, releasing 200,000 ILV tokens valued at approximately $25 Million for its Play-to-Airdrop program.
Gabby Dizon, CEO of Yield Guild Games, emphasized the potential of airdrops to accelerate the adoption of GameFi (gaming decentralized finance). However, Dizon noted that financial returns may not be the primary motivation for all gamers. Despite being several years behind traditional gaming, Dizon and Warwick anticipate rapid progress in the GameFi sector, driven by blockchain’s faster innovation rate compared to traditional gaming.
Warwick highlighted the time-consuming process of building intellectual property (IP) in the gaming industry, noting that leading gaming studios are only halfway through this process.
He emphasized the desire for persistence and highlighted the anticipation for a dominant GameFi assignment that would propel the sector ahead, corresponding to Clash of Clans and Candy Crush in the early 2010s.
Yield Guild Games envisions a destiny in which blockchain games reach the same quality as traditional gaming giants, aiming to facilitate this progress through its decentralized network of gaming guilds. Despite uncertainties, Wei expressed confidence in the GameFi industry’s potential, predicting the release of an AAA-standard game in 2024.
In conclusion, while the integration of token incentives into gaming experiences may face skepticism from some gamers, industry executives believe that such strategies will persist as gaming studios strive to attract and retain players in the evolving landscape of GameFi.
Nancy J. Allen is a crypto enthusiast, with a major in macroeconomics and minor in business statistics. She believes that cryptocurrencies inspire people to be their own banks, and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning. She frequently researches, and posts content on the top altcoins, their theoretical working principles and technical price predictions.