Problem Statement

No Investment Value

Though conventional games are entertaining, their potential is only limited to that. They do not offer any monetary benefits or investment value to the gamers, both in-game and off-game. There is no investment structure associated with traditional games that enhances the financial independence of gamers. The revenue of game companies mainly depends on player recharge and advertising revenue. Players can only invest money in the game and can't earn real money.

Lack of Transparency

Traditional games are centralized in nature. The game developers exert complete control over the gaming assets, and they can modify the gaming mechanism anytime. This leaves the interests of gamers at stake. The players can only play the games. They do not have ownership of the gaming assets, i.e., they cannot buy/sell the gaming avatars as they don't own the gaming accounts.

Zero-Sum Trap

The Zero-Sum trap is one of the major problems the NFT-based gaming sector is trying to overcome. The total amount of real money in the crypto game cannot exceed the total money paid for tokens by all the participants. It is a zero-sum system. Anything else would be counterfeiting real money. Conventional blockchain games offer a single revenue stream generated by trading in-game assets. We are not against the fact that these NFTs will increase in value over time, but the net change in equity remains zero due to increased inflation.

Lack of Physical Activities

The Play-To-Earn games are born out of actual games as the traditional video games do not bring any value to the players. Though combining real-life economy with gamification techniques was a better idea, it still keeps the gamers stuck to the monitors. The gamers have to spend dedicated time playing the games to get the gaming experience. In this busy world, not everyone can afford free time for gaming. Also, gamers in P2E games do not involve in any physical activity.

Opting for the Potential Projects

The gaming industry is growing rapidly with the digitalization and mass adoption of cryptocurrencies and blockchain. A number of games are launched every day. The real problem is determining the legitimacy and potential of these projects. Literally, not all products can have this game-changing ability. As an investor, finding a good GFI project in the market has always been a tedious task. There is no go-to place or publisher brand to find the standard GameFi projects.