Blockchain games became popular during the COVID-19 pandemic, especially in Southeast Asian countries. Players could earn a considerable income by playing these games at home, which greatly promoted GameFi (gamified finance).
Here are some well-known blockchain games:
CryptoKitties, a virtual breeding simulation blockchain game, is considered one of the pioneers of NFT games. Players can buy, sell, or breed cats, each of which is a unique NFT asset. Launched in 2017, it caused congestion on the Ethereum network and holds an important position in the development of NFTs and blockchain games.
Role-playing games, such as Axie Infinity. Developed by Vietnamese game company Sky Mavis, this sprite battle game is known as the "blockchain version of Pokémon." Players can breed, raise, and battle creatures called "Axies," pioneering the Play-to-Earn model.
Sandbox metaverse games, like The Sandbox, allow players to freely build, create, and share in a virtual world, combining blockchain with virtual reality and artificial intelligence technologies. Players own their assets and can earn through creation and trading.
There are also card competition games like Gods Unchained, horse racing-themed Zed Run, and farm management simulation My Neighbor Alice.
GameFi is an innovative concept that combines decentralized finance (DeFi) with gaming, but it has some issues that lead to its lack of success:
Economic Model Issues
Deflation and inflation imbalance: Many GameFi projects have poorly designed economic models. For example, some projects produce too much in-game currency, leading to inflation and rapid devaluation of in-game assets. Others overly emphasize deflation mechanisms, making it extremely difficult for new players to access resources, affecting their entry.
Unsustainable reward mechanisms: Early players can earn substantial rewards through the Play-to-Earn model, mainly from new players joining and initial project funding. However, as the growth of new players slows, these rewards become unsustainable, leading to player loss.
Poor Gaming Experience
Low game quality: Many GameFi projects focus on financial gains, neglecting the fun and playability of the games themselves. It's common to see games with crude graphics and simplistic gameplay, such as simple card collecting or mining simulations, which struggle to attract players long-term.
High latency and high costs: Blockchain-based games, due to the performance limitations of the blockchain network itself, such as congestion on the Ethereum network, can result in high latency in game operations. Additionally, players may need to pay a blockchain network fee (Gas fee) for each game operation (such as trading game assets), increasing their costs.
Market and Regulatory Issues
Excessive market competition: The GameFi field has attracted many developers, leading to intense market competition. A large number of similar projects emerge, diluting user resources, and each project has limited access to users and funds.
Regulatory uncertainty: As the regulatory policies related to blockchain and cryptocurrencies are still unclear in many countries and regions, this poses significant risks to GameFi projects. For example, some countries may ban cryptocurrency-related financial activities, directly affecting the legality and stability of GameFi projects.
Personally, I believe that to attract players, blockchain games should focus on unique and interesting aspects such as profit models and player social interactions. If relying solely on game quality, there is a natural gap compared to traditional games.
