Blockchain games (such as "Axie Infinity") have sparked a "play-to-earn movement" by establishing an in-game economy based on cryptocurrency rewards and non-fungible token (NFT) purchases.
The early success of these games has encouraged some game developers and publishers to fully commit to the "earn from gaming" model. This is not only a bold move but also an unnecessary one.
The right approach to games based on cryptocurrencies and NFTs is to link gameplay with real-world rewards, which is the key to retaining players and enhancing player loyalty.
However, outside the Web3 ecosystem, there are already established methods to reward players and enhance their loyalty, so there is no need for blockchain to achieve this.
Publishers can utilize the time-tested "play-and-earn" (PAE) strategy, rather than the volatile "play-to-earn" (P2E) formula, which has been effective long before NFTs and blockchain technology caught the public's eye, and it only gets better.
The Dawn of Play-to-Earn and Play-and-Earn
Traditionally, gaming has always been a one-sided market: you (as a player) could buy games from developers if necessary, and then consume through in-app purchases (IAP) from developers. You invest time and money in games for the intrinsic fun value, but get nothing tangible in return, while companies earn all the revenue.
Now, the situation is changing.
Web technologies like blockchain and NFTs promise to make players "owners" and beneficiaries of the gaming experience, introducing an element of "earn while playing."
On the other hand, "play-and-earn" has evolved into a way to reward players materially beyond the intrinsic fun of games. While players may not necessarily become "owners" like in "play-to-earn," they do gain purchasing power through tangible rewards such as gift cards.
Both approaches are meant to meet the need to engage players in new ways and turn gaming into more of a two-sided market. However, notable examples of both approaches show that today, for mobile game publishers, "play-and-earn" is a more reliable option, proven to help increase player loyalty and lifetime value (LTV).
Play-and-Earn Enhances Loyalty in Mobile Gaming
Now, compared to "play-to-earn," "play-and-earn" is clearly a better driver of loyalty. So, how can you leverage it to make your next game more impactful, or to update your current game portfolio? Many "play-and-earn" strategies have laid the foundation and created the dual environment you're looking for.
For example, Mistplay adopts a platform-driven loyalty approach. We partner with game publishers to bring their game libraries to our platform, helping players discover games that match their interests through our AI-driven recommendation engine and AI-driven TROAS campaigns.
PapayaGaming, publisher of games like Card Cash and Bubble Cash, adopts a slightly different "play-and-earn" approach. It leverages the "thrill of competition"—a key driver of player engagement according to our "Loyalty Report" data—allowing players to compete against each other, in its words, for "real cash prizes." All its games employ popular mechanics and deepen player engagement through ongoing tournaments, also promising rewards. Thus, Papaya hosts 15 million tournaments daily, reaching 37 million global game downloads in just four years.
Avia Games specializes in specific games like Papaya. Like Papaya, Avia Games leverages players' competitive spirit across various game types. Players simply download an app to participate in over 180 million tournaments monthly. Its game library is similar in content to Papaya, featuring competitive versions of classic games like bingo, card games, and dominoes.
These are just a few examples of the current "play-and-earn" model. But there are countless other examples, and there is much room for innovation. Unlike blockchain games, "play-and-earn" has been proven to cultivate long-term player loyalty, which may be the most important indicator of profit growth in a saturated gaming market. In 2024 and beyond, I encourage game publishers to consider the value beyond gameplay by implementing "play-and-earn" opportunities to enhance engagement and retain players investing time in your games.
