Play-to-earn games allow users to earn cryptocurrencies by playing games. The business model, however, has been deemed as unsustainable, despite the excitement over blockchain-based games.highlighted that the industry is exploring alternatives to replace the P2E“It’s a model that is not sustainable at all,” said Chase Freo, CEO of gaming platform OP Games during a panel at the event, giving the example of Axie Infinity’s shift in some of its flagship titles.
During the panel discussion, Paul Flanagan, the head of business development at CM Games, an Estonian mobile game developer, voiced his opinion on the core issue surrounding P2E models. He described them as"zero-sum" and highlighted their resemblance to Ponzi schemes. Flanagan mentioned that while branding sponsorship could potentially serve as a viable revenue source, its effectiveness in practice remains to be seen.
According to Statista, Grand Theft Auto 5 has sold over 180 million units worldwide since 2015, making it one of the most successful game titles ever released. Based on estimates on the revenue of Rockstar's parent company Take-Two Interactive, over $8 billion has beenby the franchise over the last decade. Considering these figures, Grand Theft Auto has been a profitable title so far. Shifting to a P2E model would be a risky venture for Rockstar.
Lifetime unit sales generated by Grand Theft Auto 5 worldwide as of May 2023. Source: Take-Two Interactive, Statista.its website to make clear that fan-operated servers for Grand Theft Auto 5 could no longer utilize crypto assets, specifically NFTs. A fan-operated server allows modifications to a PC game and interaction between players. As for Grand Theft Auto, some servers implemented NFTs to give players ownership of in-game goods, such as cars and weapons. Rockstar's ban was a setback to fans hoping for NFTs in the franchise.
Rockstar Games dealt a blow to Grand Theft Auto fans by banning NFTs from fan-operated servers. Will the upcoming GTA6 break the pattern and introduce crypto elements?