As blockchain technology continued to evolve, the gaming industry quickly embraced it. Cryptocurrencies and NFTs have paved the way for a new form of in-game economy where assets have real-world value.
Gamers who spend hours leveling up their characters and crushing rare items have more incentives to do so. Blockchain games reward time through a model commonly known as Play-to-Earn (P2E) games.
This is especially popular in parts of Southeast Asia, where some people can earn full-time income from games alone.
But over time, Defects are starting to appear.. It is becoming clear that P2E models are not always sustainable. They often rely on new users to invest in the ecosystem, and when they lose interest, they can’t pay their bottom line.
“The Play-to-Earn model that shaped the first iteration of the blockchain game creates an unsustainable ecosystem,” explains Justin Hulog, chief studio officer at Immutable, a pioneer in NFT technology. ..
“Creating a product whose only reason to play is purely earning is flawed and misses the points of the game. Often these monetary gamifications are predatory and long-term. Is not accepted. ”
Introducing the “Play and Earn” game
It’s just a small change in wording, but its impact is significant. The immutable champion defends a game model that can earn monetary rewards, but the central focus remains gameplay and entertainment.
We believe the game should be fun. Instead of turning people’s favorite hobbies into “work,” we focus on fun and engaging gameplay while giving players ownership and practicality.
– Justin Hulog, Chief Studio Officer of Immutable
The Play and Earn model is featured in Immutable’s flagship product, Gods Unchained. An online trading card game created in 2018 where players compete in duels with each other.
Gods Unchained uses $ GODS crypto coins as the in-game currency. This can be earned by the user playing the game. You can then exchange coins for fiat money or use them to unlock in-game utilities.
“Our focus on $ GODS is always to unlock additional utilities for our community. With $ GODS, players can use it in-game or market. You can create new NFTs that you can trade on. Recently, we released a new Shine Fusing feature that allows players to burn NFTs and create even rarer NFTs, “Hulog said. increase.
By making sure that $ GODS has the desired utility, Immutable can drive demand and prevent mass sales. This is where games you play and earn often tend to fail.
“We are working on unlocking more $ GODS use cases, including staking, voting, governance, etc.,” he adds.
Gods Unchained players can earn money through the game, but it is not presented as a main focus or selling point.
US $ 200 million to facilitate expansion plans
As of January 2022, Gods Unchained has approximately 80,000 active players and $ GODS has a market capitalization of over US $ 10 million.
Following its success, Immutable is now preparing to launch its second blockchain game, the Guild of Guardians. The game already boasts a community of 400,000 people.
Coupled with this, the platform secured US $ 200 million in Series C funding in early March, led by Temasek and other investors, including the Animoka brand and Tencent.
Immutable, currently worth US $ 2.5 billion, is actively planning expansions to materialize in the coming months.
First, we plan to more than double the size of the company to 400 people. This means that next year, many jobs will hire more than 200 new employees worldwide.
From a cash perspective, fortunately, a runway of more than four years is planned, even with active employment. This means that you can increase your workforce even if other traditional tech and crypto companies suspend hiring.
– Justin Hulog, Chief Studio Officer of Immutable
Immutable will also use its funds to invest in the NFT marketplace Immutable X to expand its gaming studio.
“To be a leader in blockchain games, we need to be a reliable platform for developers looking to build blockchain games, as well as building games owned and operated by Gods Unchained, Guild of Guardian, etc.” He continues.
Given the success of NFT games in countries such as Indonesia and the Philippines, Immutable also considers the Southeast Asian market to be one of its major target markets.
“This region is very important in terms of how we think about growth in Immutable. In addition to ensuring the reach of our current products, the company can also create customized products for this market. I’m aiming, “he explains.
“We understand the richness of diversity in these regions and we have a large community with different motives, needs and languages, so we prioritize localization as one of our key strategies for expansion. It does more than just translate our products and marketing into the local language. It is tailoring both our products and content to the needs and interests of each region’s market and its diverse communities. is.”
To achieve this goal, Immutable has begun expanding its recruitment process in Southeast Asia.
The future of NFT and blockchain games
Although interest in NFTs has diminished due to the recent market crash, Immutable is fully convinced of NFT’s position in the digital future.
NFT I’m going to tokenize the world And the game will be their first major breakout vertical. Video game assets have always been a highly desirable digital collection in their own right.
In 2020, players will spend US $ 74 billion just to collect in-game items and want those items, so they will do nothing in return. With NFTs, you can own these items instead of getting a license from a gaming company.
– Justin Hulog, Chief Studio Officer of Immutable
This technology ensures that the time and money players spend on games is not sunk cost. That said, revenue potential does not in itself drive user recruitment.
“Games with great gameplay that players want to play without incentives, like Gods Unchained and Guild of Guardian, will be a major driver of mass adoption of blockchain games,” he adds.
