NFT Games VS. Traditional Games: Differences & Future

The rise of blockchain technology has given birth to a new era in gaming: NFT (non-fungible token) games. Unlike traditional games, NFT games offer players true ownership of in-game assets, allowing them to trade and sell these assets on blockchain marketplaces. This unique feature has led to a surge in popularity, attracting gamers and investors alike. But how do NFT games stack up against the long-established world of traditional gaming? 

In this article, we’ll take an in-depth look at both to predict which approach might dominate the future of gaming.

Note: If you are also interested in exploring the current landscape of NFT gaming, you can check out our comprehensive guide on the best NFT games of 2024.

Key Takeaways

• Asset Ownership: Traditional games don’t allow asset ownership; NFT games do, enabling real-world trading and sales.
• Centralization vs. Decentralization: Traditional games are centralized whereas; NFT games are decentralized and more secure.
• Economic Opportunities: Traditional games offer limited economic benefits; NFT games allow earning real-world rewards through NFTs and native cryptocurrencies..
• Gaming Experience and Community: Traditional games have high production value and large communities; NFT games are slightly lacking though new games like Pikamoon are trying to turn things around. 
• Security and Fairness: Traditional games are prone to hacking; NFT games use blockchain for enhanced security and fairness.

NFT Games vs. Traditional Games: An In-Depth Comparison

1. Asset Ownership

• Traditional Games

In traditional gaming, players invest time and money into games but do not own the in-game assets. For example, in popular titles like Candy Crush, Mario Bros, and Call of Duty, all in-game items, guns, characters, skins, etc. are the property of the game developer. Players cannot legally sell or trade these assets inside or outside the game environment. 

So, while the Global in-app purchase market size may reach $515.92 Billion by 2028 (per The Business Research Company’s latest predictions), the players will likely see no return on these investments. 

• NFT Games 

NFT games grant players true ownership of in-game assets. Each in-game asset is an NFT stored on the blockchain, meaning players have the ability to trade or sell these assets for real-world value. For example, one of the best NFT Games, Axie Infinity allows players to buy, breed, and trade digital creatures called Axies. In 2021, some rare Axies sold for over $100,000 (no jokes), demonstrating the massive earning potential of the NFT gaming model. 

Today, new NFT games like Pikamoon are taking this potential up a notch by introducing free-roam open-world metaverse, where players will be able to explore, hunt, battle, and do so much more than just evolving the NFT creatures (Pikamoons in this case).

2. Centralization vs. Decentralization

• Traditional Games

Centralization is a key feature of traditional games. All control and data are managed by the game developer or publisher. This centralization can lead to issues such as:

• Unfair practices – they can make the rules as they go
• Lack of transparency – particularly in loot box mechanisms
• Vulnerability to hacking – where one security flaw can expose the entire network

For instance, in 2011, the PlayStation Network was hacked, compromising the personal information of 77 million accounts and resulting in a 24-day outage.

• NFT Games

NFT games are decentralized as they’re built on blockchain tech. This decentralization ensures transparency, as all transactions and game data are recorded on the blockchain, forever, making it nearly impossible to alter or hack. 

In addition, the community can also govern decentralized games through decentralized autonomous organizations (DAOs), which democratizes decision-making. A great example is YGG DAO, founded by the well-known Axie Infinity player Gabby. 

YGG invests in the Axie Infinity ecosystem by recruiting managers who identify and train scholars, loaning them assets to play. Scholars share a portion of their income with the managers and YGG. Currently, 19 managers oversee over 4,500 scholars.

This type of decentralization fosters community involvement in decision-making processes, boosting player trust and engagement.

3. Market and Economic Opportunities

• Traditional Games

In-game purchases and economies are confined within the game, providing no real-world economic benefit to players. For example, Fortnite generates billions in revenue through in-game purchases, but players cannot trade or sell their skins or other items outside the game. So, the economic opportunities are relatively limited in traditional games. 

• NFT Games

On the other hand, NFT games let players monetize their in-game activities. They allow players to earn as they play through trading NFTs and earning a particular cryptocurrency. Pikamoon, for instance, uses its native token PIKA to incentivize players. The token is currently trading on the free market, meaning players can withdraw their funds and get real-world benefits. 

The NFT gaming market is booming – with Axie Infinity leading the pack – allowing players to buy, sell, and trade virtual real estate and other assets. According to Chainplay, the trading volume for blockchain games is approximately $7.3 billion in Q3 of 2024, shedding light on the lucrative opportunities available to players.

4. Gaming Experience and Community

• Traditional Games

Despite the lack of economically lucrative options, one thing is pretty obvious – traditional games offer a more polished and refined gaming experience. They often have very high production values. No blockchain game can compete with the likes of Red Dead Redemption 2, CyberPunk 2077 and Alan Wake 2. The communities are usually large and very active, driven by the popularity of the games. Likewise, traditional games like League of Legends boast millions of active players and host annual tournaments with substantial prize pools.

• NFT Games

While some NFT games are still developing in terms of gameplay and graphics, they offer unique experiences centered around player ownership and community involvement. The sense of ownership often leads to more engaged and invested communities. 

For instance, the Pikamoon community, known as the ‘Pika Army,’ is actively involved in the game’s development. They have been instrumental in reporting bugs in beta release, ELO enhancements and other minor game upgrades. 

As of Q3 2024, Pikamoon beta has garnered over 20,000 active gamers, thanks to leaderboard rewards and activity-incentivizing schemes.

5. Security and Fairness

• Traditional Games

These games are susceptible to hacking and unfair practices. For instance, if a game’s server is compromised, players’ data and progress can be at risk. The 2011 PlayStation Network hack, which we mentioned earlier, compromised 77 million accounts. This is a stark example of what may happen if a threat actor exploits the vulnerabilities in these centralized systems. 

• NFT Games

The decentralized nature of blockchain games enhances security and fairness. Transactions are recorded on the blockchain, ensuring transparency and reducing the risk of hacking. Pikamoon leverages blockchain technology to provide a secure gaming environment, where players’ assets are safe and gameplay is fair.

Considering all these key differences, let’s take a look now at what the future of the gaming landscape may look like…

The Future of NFT VS. Traditional Gaming

What to Expect From Traditional Games

In the near future, traditional games will be driven by advancements in VR and AR. By 2027, the global gaming market is projected to reach $398 billion, with VR and AR games contributing a significant portion. 

Big tech giants like Meta (formerly Facebook) and Sony are heavily investing in VR technology, aiming to create more immersive gaming experiences. 

In addition, the integration of AI to enhance NPC (non-player character) interactions and adaptive gameplay will further enrich traditional gaming experiences. Hence, we expect an even broader audience for traditional games in the future. 

However, despite these technological advancements, the lack of true asset ownership and economic participation will remain a major limitation for players.

What to Expect From NFT Games in the Future

The future of NFT games looks incredibly promising, with the market expected to witness exponential growth as blockchain tech becomes even more mainstream. By 2025, it is predicted that the NFT gaming market will surpass $10 billion in annual revenue, driven by increased adoption and the entry of major gaming studios into the space. 

As such, new games like Pikamoon are paving the way by combining engagingly fun gameplay with the economic benefits of blockchain. Couple that with the ability to own, trade, and monetize in-game assets,and these virtual worlds will start attracting professional gamers and casual investors as well. 

Moreover, the development of cross-game interoperability will allow players to use their NFTs across multiple games and platforms, further enhancing the value and utility of their digital assets.

Conclusion: Which Gaming Model Will Prevail in the Future?

Both models will flourish, but we are likely to see the third hybrid model as a convergence between traditional and NFT games that leverages the strengths of both approaches. 

Major gaming companies, recognizing the potential of blockchain, are already incorporating NFT elements into their traditional game offerings. Ubisoft, EA & Square Enix, for example, have already started experimenting with NFTs in their games. Therefore, this hybrid model will enable players to own and trade certain in-game assets while still enjoying the high production values and immersive experiences of traditional games. 

As this trend grows, we can expect more traditional games to adopt decentralized elements, fostering a more inclusive and economically rewarding gaming environment. This convergence will redefine player engagement and ownership in the overall gaming industry, setting new standards for the future.

To stay ahead in this new gaming hybrid model, download Pikamoon now. The beta version is currently available for both Android and iOS users, and the full AAA NFT game release is just around the corner.

NFT VS. Traditional Games – FAQs

Are NFT games better than traditional games?

It depends on your goals. If you want to earn passive income, NFT games are better as they allow you to monetize digital assets and earn real-world rewards. However, if you prioritize top-notch graphics and an AAA gaming experience, traditional games may be better. Some NFT games, like Pikamoon, are striving to offer similar AAA experiences.

How to make money with NFT games?

To make money with NFT games, players can earn by trading in-game NFTs, winning play-to-earn rewards, and participating in staking or yield farming within the game’s ecosystem. For a detailed guide, read our article on How To Make Money With NFT Games.

Is it possible for traditional games to incorporate NFT elements in the future? 

Yes, traditional games can incorporate NFT elements. Some developers like Ubisoft are already exploring ways to integrate NFTs for asset ownership, trading, and enhancing player engagement.

Do traditional games have any form of player governance? 

Generally, traditional games do not have player governance. Game developers and publishers make all the decisions without direct input from the player community.

What is the learning curve for new players in NFT games compared to traditional games? 

The learning curve for NFT games is steeper due to the need to understand blockchain technology, digital wallets, and the mechanics of NFTs. Traditional games have a more straightforward learning process which focuses solely on gameplay and fun.

How does the initial investment for NFT games compare to traditional games? 

Established NFT games often require a higher initial investment, as players may need to purchase NFTs or tokens to start playing, but newer games like Pikamoon are absolutely free to play. Traditional games also involve a one-time purchase or subscription fee without the need for additional investments.