Regulators Considering A Ban On Play To Earn Games
Can a gaming company sustain its company, pay developers and the likes without a considerable source of income from the game?
If gaming isn't rewarding, will there be huge adoption? , will people dedicate time and resources to something that is meant solely for fun or with little stipends that cannot argue for the resources spent?
With the increase in the adoption of play-to-earn games, regulators are shown their stand against the new gaming system. Taking, for example, In South Korea, the Game Management Committee (GMC) in the Ministry of Culture, Sports, and Tourism has issued a strict warning to mobile game marketplaces against listing games that demand the gamer to purchase some tools before he can play the game. The organization believes that play-to-earn gaming is currently used as a money-making scheme which in no distance time can lead to money laundering and the likes. It was disclosed also that the highest amount a gamer can win in South Korea at a time in a game shouldn't exceed 10,000 KRW ($8.42).
How did play-to-earn games come into the digital world?
Before the coming of play to earn gaming system. Most of the online gaming system is free to play but the gamer has to struggle with ads. This is because the gaming company benefits from these ads. Unfortunately, most gamers use ads blocker or even skip the ads before the given time frame. The profit generated from ads wasn't much for the gaming industries and most gamers abandoned online gaming because of the ads. This lead to a reduction of gamers and a shortage of income for gaming industries. Also, the time spent on gaming becomes a waste because there was nothing to show for it.
The coming of play-to-earn gaming issued in a new system of gaming decorated with rewards. The gaming industry can generate income from the sales of in-app tools. The gamer will also generate rewards by playing the game with the purchased tools. The good part is that he can sell all the tools whenever he feels like he needs to quit. Gaming this becomes a win-win for both gamers and the gaming industry. The time spent on games becomes fruitful. Today, many people make fortune from gaming.
Why are regulators making moves towards the regulation of play to earn games?
It is obvious; the same reason why they are against cryptocurrency. Decentralization will also be a thorn in the flesh of the government. If gaming isn't rewarding, of what use will it be to gamers? In what ways is the gaming industry going to generate rewards for itself?. They may come with the argument that it will promote money laundering, but aren't money laundered through fiat? If they are so interested in protecting the economy of the country and in transparency, what is keeping them from embracing the blockchain where all their financial transaction will be open to all?.
Regulation may be ideal instead of an outright ban. At least, it will help prevent underage gaming, and ensure that gaming industries do not sell their in-game tool at a higher price.