Pong, released in 1972, was the first game to grab wide-scale public attention.
Since then, gaming has exponentially moved forward – 8-bit pixels have turned to 3D polygon narratives, have grown in scale, and voice acting has been introduced to create more immersive experiences.
As gaming advanced, so did the experience. “skill to earn” is a culmination of the technological advances now intertwined with gaming, such as blockchain, AI and web3 in general. This has led to a rapidly inclusive and collaborative gaming landscape, aiming to give players and developers the gaming experiences they want.
Skill-centric economies
The gaming industry has experienced a renaissance in recent years, but the virtual landscape has completely shifted, as has the nature of in-game economies.
The industry is profoundly shifting from traditional, vanilla pay-to-play models to a more intricate, skill-centric, collaborative landscape. It’s not merely about playing; it’s about recognising and rewarding the efforts players put into their games and translating that effort and time into a comprehensive reward system.
By providing a space where innovation is encouraged and rewarded, “skill to earn” is more than a concept- and can become a pillar of the industry, where creators and their audience can genuinely collaborate and be rewarded organically.
Empowering developers, fostering innovation
The gaming industry has recently experienced a widened spotlight on game developers that, while still focused on major developers, such as Ubisoft and EA, also encompasses indie developers. These new avenues and experiences, coupled with web3 integrations and the micro-transactional nature of games nowadays, lend to a shift in paradigms where developers can take advantage of a platform to showcase their talents and creativity.
Players also benefit from this shift, evolving from passive consumers to active contributors. Recently, gaming has witnessed a collaborative scene where players become integral to the creative process. Take, for instance, participation-based beta testing, where players are granted access to a limited version of a game close to complete development, essentially ironing out details to avoid teething issues. By actively reviewing the game and commenting on what works and what doesn’t, the players shape the game into an experience that works for all parties involved.
The dynamics of ‘skill to earn’ platforms
Indie developers, who usually do not have access to significant advertising budgets and rely on word of mouth to get the word out, benefit from increased visibility due to the flock of gamers who want to play the more established titles. For instance, this was the case with indie success. Australian-based Cherry Games’ Hollow Knight debuted on Steam, a PC gaming platform, in 2017 and became a sleeper hit, eventually released on the Nintendo Switch in 2018 due to massive demand and recognition.
It was even announced during a Nintendo Direct, a video presentation of upcoming games created by Nintendo that draws millions of views – now that’s exposure! With initiatives like these, indie games and triple AAA-developed games can co-exist on a single platform, emphasising renewed visibility for under-platformed devs.
The healthier gaming economy directly fuels the “skill to earn” schematic because players are more directly involved in gaming than ever before. Thus, players want more than an essential “play to earn” experience but a more profound, extensive approach that rewards invested effort and time.
Leveraging the power of innovation is not just redefining in-game economies but creating a platform where players are incentivised to upskill, developers are acknowledged for their creativity, and the entire gaming experience becomes a collaborative journey towards a unified and stable gaming economy.
Success stories
The “skill to earn” ecosystem has already produced numerous success stories highlighting the transformative power of recognising and rewarding skills and creativity. Once relegated to the background, developers are now at the forefront of the gaming narrative. Their creations are not only valued but economically rewarded by a discerning audience.
For example, Eric Barone is the celebrated developer of indie darling Stardew Valley. As the sole developer of a critically acclaimed game that has sold over 20 million copies, he is a celebrated creator, earning a spot on Forbes Magazine’s 30 under 30 in 2017. The scene has encouraged a new lens, allowing developers to be recognised for their efforts more rewardingly.
The success stories emerging from this ecosystem serve as a testament to the potential of skill and creativity, fostering a gaming landscape that is not only dynamic but also economically fulfilling.
As we continue to see significant developments in both the traditional gaming industry and the web3 gaming industry, I hope that the gaming industry embraces the power of “skill to earn” to improve the ceiling of the games we create and the gameplay consumers experience. By doing so, as a collective, we can skew away from a web2 “play to earn” saturated experience to an environment in which skill, innovation and transparency are emphasised. It is a matter of when and not if “skill to earn” will become the new norm in the next few years.
I certainly believe so