From P2E to AAA Experiences: The Evolution of Web3 Games

cryptonews.com:

Disclaimer: The text below is an advertorial article that is not part of Cryptonews.com editorial content.

The video game industry is currently valued at $178 billion (said to reach $258 billion by 2025), occupying a huge portion of the market share within the entertainment industry. What makes these figures possible? And what can we expect for the future of video games? The answer lies in the history of video games and the evolution of their revenue models. 

In its earliest days, developers and publishers used Buy-to-Play models where users would have to purchase games (such as Super Mario, Zelda, and Final Fantasy) in order to play the complete version of a game. As video games evolved, so did their revenue models. Many developers adopted Free-to-Play frameworks, in which players could access games (such as League of Legends, PUBG, or Fortnite) for free, only needing to pay for bonus downloadable content (DLC) and microtransactions (in the form of cosmetic and utility assets).

By 2018, the introduction of blockchain technology gave birth to GameFi, aka gaming finance, which refers to the merge between web3 and gaming. By leveling the playing field between players and publishers through financial rewards and increased governance abilities, blockchain games like CryptoKitties and Axie Infinity empowered players in unprecedented ways. According to DappRadar, a single day of blockchain games accounts for nearly $12 million from millions of gamers worldwide. These early iterations of blockchain video games used Play-to-Earn (P2E) models, in which players collect cryptocurrencies or NFTs produced in the blockchain-based game. Players generate income by selling these rewards, which can be exchanged for fiat cash in return.

Howeve