The play-to-earn (P2E) model has significantly failed, exhibiting a decline in player engagement and funding that has fallen over 70% in Q1 2025. This situation arises from a foundational flaw: linking gameplay rewards to volatile tokens has turned players into speculators, making the gaming experience susceptible to market risks. The model's structural failure means new players often face reduced payouts, leading to a vicious cycle of decreased participation and value. In contrast, the emerging play-to-own (P2O) model prioritizes ownership and asset utility over token emissions, allowing players to trade fixed-supply items like skins and weapons in secondary markets. This shift makes the value of digital items stable and derived from their utility and rarity, rather than speculative inflation. Critics argue that profitability in resale markets poses risks, but a proper sink mechanic can maintain stability by controlling supply. The gaming sector now requires better-designed games that foster prolonged player engagement rather than focusing solely on cash extraction. Only through an emphasis on ownership and sustainable gameplay can industries weather the current financial downturn and emerge robustly.

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