The South Korean game development giant NCSoft Corp has taken a bold step towards developing and launching their play-to-earn NFT game. In the blockchain world of finance that is fast spreading everywhere, the use of non-fungible tokens (NFT) is redefining things. Not only do these games offer tremendous entertainment to game lovers, but they also can earn big.
On the 11th of November, 2021, NCSoft’s Chief Financial Officer, Hong Won-Jun, made the public announcement at an earnings call. He claimed that the technology design had been completed in creation with a particular type of cryptocurrency. In addition, the company releasing such an impressive launch is a step in the positive direction.
Not only is the company launching its own NFT based cryptocurrency, the Massively Multiplayer Online Role-Playing Games (MMORPG), there is more. The company is also applying the play-to-earn model to every developed and distributed game by the NCSoft Company. By the first half of 2022, the company promises to have its official release where players can begin to earn money. The method may involve trading game items or an acceptable type of NFTs.
What are NFTs?
Non-fungible tokens (NFTs) are tokens based on blockchain technology representing a unique asset belonging to an individual entity. It may be a piece, a media file, or digital content. These tokens cannot be reproduced, counterfeited, or altered in any way, which gives the holder complete ownership of this digital asset. Check out one of the biggest projects of NFT Gaming at http://fatehcreative.com/the-biggest-nft-projects-including-nft-games/
While the global game industry is currently experiencing a shift in applying technology in finance, it is a paradigm shift in a positive direction. The system has now evolved to a play-to-earn rather than the conventional pay-to-win models in video games. The new GameFi innovations are based.
A Worthy Innovation
As NCSoft announced NFT-based games, it also propels the creativity of other parallel companies towards the growth of the business sector. On the other hand, it attracts new gamers to try their adventure with the latest software, especially when there is a monetary reward at the end of each successful task. Moreover, the tips in commission result from operating the NFT exchange. Click here to learn more about NFT exchange.
The company shares rallied close to a daily limit of 30% at 786,000 units in response to the announcement. This stock market response shows a positive inclination towards such innovation when successful. Statistically, it is also the first time the stock hit its daily limit in the past six years.
Pay-to-Win (P2W) vs. Play-to-Earn (P2E) Models
The mobile gaming market of South Korea also saw the launch of the Lineage W mobile game that quickly topped the highest spot. In addition, it set a new record of daily sales of Korean apps on the Google Play Store. Over a 9-day sales period, the cumulative sales exceeded the 100 billion won on its debut.
However, the successful launch of the mobile game did not have a positive influence on the shares as it holds a view of the previous P2W model. Perhaps, the resistance in the shares stock is because there is a general perception that the P2W is fast being replaced by the P2E. In addition, the third-quarter operating profit reduced by 56% with a decreased sale of 14.5%.
As for the new play-to-earn model, it had a global hit when South Korea’s first P2E game, Mir4, was launched. This result must have prompted NCSoft and the other game development companies to imbibe the P2E model. Therefore, Wemade Co, the company that produced the Mir4, rules the stock market with rising prices over ten times over 18 months.
Companies’ Response to the NFT-Games Model
In the launch of the global version last August, it has fully adopted blockchain technology. In this Wii game, players can mine black iron, a precious collectible that they can trade for a game coin known as Draco. More so, they can exchange these coins into WEIX tokens, which is acceptable on cryptocurrency exchanges.
Another South Korean mobile game developer, Com2uS Corp, also applies the P2E model to a new MMORPG called the “Summoners War: Chronicle.” This NFT game will also be unveiled by next year. These NFT games based on blockchain form an integral part of how digital businesses in the industry will be run going forward.
Meanwhile, the P2E model is a good step in eh right direction and is gradually evolving. Similarly, the new model is not devoid of its own limitations, but it is fast getting better each time. Moreover, this new model is not limited to South Korea or Asia but has become an exportable model to the entire world. To a large extent, the local market is also banning the model.
Application of the NFT Models in the World
A new initiative in the P2E model also includes the Binemon, one of the much-awaited projects that attracted a lot of interest in cryptocurrency. Also, Binemon’s launch has been a massive success within the play-to-earn model and the short period. Participation has also been increasing within the digital environment.
For example, the Axie Infinity, a pioneering initiative of NFT gaming that sold to the world, grew tremendously in the Philippines. This growth reached up to 2 billion dollars in value because the gaming experience came with blockchain technology. However, the expansion raises some anticipated concerns about its wide acceptance across other parts of the world.
Many hold the idea that this new NFT games model is only more suitable for developing countries globally. Their prejudice is that these P2E models in video games may not have the same results in other parts of the world.
In summary, the global space is still readjusting to the innovation of the blend of cryptocurrencies to the gaming experience. By projection into the New Year, players can also expect some more enjoyable game development patterns towards better player experience and higher financial returns. This new business technique also produces a stunning quality for game development worldwide, especially with the integrated blockchain technology. In turn, this growth will enhance the economy in a more positive direction for all stakeholders.