The Schrodinger’s Loot-Box, Smallpox Of Pay-to-Win, And Blockchain In Video Games

Simonas Jatkonis
Aug 31, 2018 · 5 min read

With a 2.2 billion player base, $109 billion market revenues, and a 56% growth in the past five years, why the gaming industry still unable to unlock the true potential of blockchain?

Video game market is very competitive but big game corporations are slow to change, especially when we talk changes that can disrupt their monetization models. Maybe that’s why blockchain, a flagship of in-game asset ownership is not embraced so eagerly by traditional developers. At this point, a merger of games and blockchain is entirely in indie’s hands. I’m sure, after a few successful cases on an indie level, big corporations will follow.

There are few blockchain based games in development right now. Some are copycats of popular video games, some had put a bit of imagination into game design and try to create something unique. Most importantly, that a wave of crypto-scams pretending to be video games has ended. Like a quiet fart, they disturbed the market and vanished into the unknown. Still, even counting the farts out, not every blockchain based game can expect the success.

So, What Should An Actually Good Blockchain Game Look Like?

First, it should be an actual game. Preferably, a good game.

Second, it should utilize blockchain tech for a reason. For example, one reason might be to solve problems encountered by gamers in the modern gaming industry.

Third, if a project takes money from contributors, it should have a sustainable, long-term business model. Read more

Modern Gaming Has A Gambling Problem

Even though the current video game industry market is huge, it uses an abusive monetization model whose days are numbered. Most of this growth is fueled by Loot-Box and Pay-to-Win monetization models that face backlash not only by a sizeable and growing minority of gamers but also by legislators all around the world.

Some critics call it: “predatory in design”, “business of addiction”, and “designed to lure kids into spending money”. A number of Asian countries (including China, Japan, and South Korea) already moved with legislations considering Loot-Boxes a subject of gambling laws. Several Europe Union countries took a similar approach.

Tide is shifting but legislations are coming slowly and in many occasions are circumvented by a crafty legal teams of game corporations.

Loot-Boxes And Asset Ownership In A Nutshell

Imagine that you come to a grocery store to buy a nice, red, juicy beetroot for your grandma’s borscht. You pay up front and instead of getting the beetroot, you get a closed bag with a chance of getting a beetroot. There is a possibility that the beetroot you paid for is in the bag. However, there might be a bigger chance that opening the bag will net you an origami middle finger made from your shopping receipt.

In the gaming world, this mechanism of selling a chance to get what you want is called a Loot-Box.

But wait, the situation is even worse than it looks. Even if you find a person collecting origami middle fingers, you can’t sell it to him. The shop sold you only a license to use the middle finger. That’s the in-game asset ownership in the gaming world today. You can’t use it because it’s useless (let’s face it, it’s just an origami middle finger, even if a nice one). And you can’t sell or trade it because you don’t own it.

In the real world, nobody would put up with such bullshit. In the gaming world, it is a common practice.

MERGE: Play, Own, Trade With No Restrictions

At MERGE we use blockchain to solve Schrodinger’s Loot-Box problem by giving complete asset ownership to players. They are free to trade in any way they wish. Creating an in-game token economy and innovative game mechanics allows us to implement new monetization ideas avoiding the gambling ways of the Loot-Box. Read more

Pay-to-Win: Competition Who Spends More

Imagine that you are a passionate cyclist and decide to participate in Tour de France. You come to the start line ready to kick ass. But instead of a sports bicycle, you get a child’s tricycle. Organizer reveals that you have to pay if you want to get on equal terms with competitors. You hand over some cash and get a nice looking sports bicycle. After a first few hours, you are bypassed by some guys on electrical bicycles. You love to race so you hand over the cash.

Well, you are getting the idea about competition in a Pay-to-Win environment. And even after spending thousands of dollars you still can’t be certain that you won’t eat a dust of some spendthrifts motorcycle in the bicycle race.

MERGE: Play-to-Win Solution To A Competition Problem

Competition is a cornerstone of every multiplayer game, and especially in eSports environment. With a help of blockchain tech, we’ve created a monetization model which preserves the sports spirit.

Inspired by an idea of token economy we strive to create a player-centric community. Give the power to the players: real asset ownership, free trade, and fair competition. Furthermore, and game mechanics which allows players to create infinite variations of characters. To base competition on strategy and skill only. Read more

The Last Words

Crypto world enters the end phase of Wild West and quickly grows into maturity. With maturity comes responsibility. Responsibility to contributors, customers, and community. In the upcoming few years, much-needed legislation will purge crypto market of scammers and create more trust in blockchain technology. Only real products that solve real problems and introduce novelties into the market will survive and prosper.

All our team works their asses off to ensure that MERGE would be one of such projects. First of all, we develop a real video game with unique gameplay features that open gates to infinite tactics and strategies. Second, we use blockchain tech to empower players. Third, we have a long-term business model that includes single-player campaigns exploring the post-apocalyptic dark fantasy world of The Merged Earth.

Check out our website for more details on game features, ask questions, and start discussions. We’d love to tell more.

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Merge: Eternal Battlegrounds

First Real Video Game On Distributed Ledger

Simonas Jatkonis

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Merge: Eternal Battlegrounds

First Real Video Game On Distributed Ledger

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