GameFi airdrops are here to stay but won’t save a bad game: Execs

Industry insiders predict that gaming companies will probably persist in employing airdrops and similar incentives to draw in players, despite some gamers’ ongoing objections to the economic systems behind these rewards (tokenomics).

Kieran Warwick, the founder of gaming studio Illuvium, shared his thoughts during an interview with CryptoMoon: “This approach offers a great simplicity in capturing market share.”

Games that lack enjoyment or engaging gameplay will ultimately struggle to succeed, according to Warwick.

“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, the founder of LongHash Ventures and an investor in various blockchain gaming initiatives, underscored the significance of:

“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.”

The achievement of Axie Infinity as one of the most successful blockchain games to date is noteworthy. Yet, following a major $650 million heist from its cryptocurrency bridge and other setbacks, Sky Mavis, its developer, faced significant challenges in keeping users engaged during the previous market downturn.

According to Wei, the survival of games relies on their ability to address sustainable economics, establish effective emission plans, attract desirable players, and motivate desired game actions.

GameFi airdrops are here to stay but won’t save a bad game: Execs

Not everyone is looking to make money

Warwick admitted that offering token rewards would draw in people not truly interested in gaming, referred to as “airdrop farmers,” but this was an unfortunate necessity for expanding our player community.

“It also gets us the attention that we need from people who are gamers in the space,” he added.

Last week, Illuvium distributed around 200,000 ILV tokens, valued roughly at $25 million, as part of its six-month Play-to-Airdrop program – a move that has recently sparked his remarks.

At the end of May, Illuvium Arena, Overworld, Zero, and Beyond, all part of the Illuvium platform, will become available on IMX, a Ethereum-based layer 2 specifically designed for NFTs. In these areas, you’ll be able to gather airdrops.

Simultaneously, Gabby Dizon, the CEO of Yield Guild Games, contends that airdrops can significantly contribute to the growth of GameFi, but not all individuals are solely focused on monetary gains.

“You could be buying an asset that gives you social status in the same way that you might be buying an expensive car or a watch or clothes.”

GameFi standards still have a way to go

According to Dizon and Warwick’s perspective, GameFi is approximately 14-15 years behind the current state of traditional games. However, they anticipate this difference to narrow down significantly in the near future.

“According to Warwick’s observation, the speed of new advancements in blockchain technology surpasses that of the conventional gaming industry. This is due in part to the influx of professionals from traditional game studios, which have previously created games with large player bases numbering in the millions.”

“So we’re not starting from scratch, but also at the same time, we are building IP which is the thing that takes the most amount of time — like having people fall in love with the storyline, with the universe that you’re creating and how the characters interact with each other.”

“All of these elements can’t be created overnight,” he added.

It takes approximately six to seven years for a company to build up its intellectual property (IP), according to Warwick’s observation. The foremost gaming studios are currently around the midpoint of this lengthy development process.

Dixon remarks that a leading GameFi project, which has yet to emerge, could significantly advance the sector much like how Clash of Clans and Candy Crush revolutionized traditional gaming during the early 2010s (until that time, we’re in anticipation of this breakthrough game in the GameFi sector).

Yield Guild Games aspires to find a high-caliber game in the future by establishing a decentralized gaming community made up of guilds for blockchain games, connecting developers and players.

In simpler terms, the future of gaming lies in user-created content as more and more players generate unique characters, levels, and expand existing games. However, for a vibrant digital economy to flourish, it’s essential to have technology that ensures creators retain ownership over their work.

— Sebastien (@borgetsebastien) March 20, 2024

Despite some doubts, Wei is optimistic that a top-tier GameFi game will emerge by the end of 2024.

Read More

2024-04-23 06:27