There were two scenes that impressed me at the Korea Game Awards. The main character is ‘P2E (play to earn)’.
#1 ‘Mir 4 Global’, which is not serviced in Korea, won the Game Business Innovation Award at the Korea Game Awards.
#2 WeMade CEO Jang Hyeon-guk said at the meeting, “In Korea, it is stipulated that in-game goods are meandering when they come out, but I have serious doubts about whether it fits the actual game play.” On the other hand, Kim Gyu-cheol, chairman of the Game Management Committee, drew a line saying, “If there is a ban on speculation in the current game law, NFT games are impossible.”
Currently, there is a clear difference between the industry and institutions when it comes to domestic NFT game products. To be precise, P2E (Play to Earn) through NFT is a hot topic. As an executive body, the Game Commission interprets P2E as speculative. On the other hand, the game industry promotes P2E as an innovation. The game industry advocates the logic of sharing profits with users, not speculation.
From the game committee’s point of view, NFT is like a scorecard for horse racing. If you look at the classification regulations of the Game Board, ‘the game results are stored using a device or transmitted over the network to facilitate currency exchange’ is to be judged. NFT is one such case. Just like receiving a prize with a scorecard, it is speculative if you can receive real money through NFT. The Game Committee emphasizes that the regulation several times is a speculation, not a new technology.
The law at issue is the prohibition clause, Article 28 of the Game Industry Act, ‘not to encourage speculation by providing prizes, etc.’. As is well known, the main purpose of this provision is to prevent the recurrence of the past Sea Story incident. The opinions of the game industry and institutions are divided on this. The game industry sees P2E as a new trend in the global game market, but it is a regulation that blocks this growth. The Game Committee sees this as a user protection measure against speculation.
When they say, ‘Let’s do it according to the law’, the position of the Game Committee prevails. However, if we consider the ban as a ‘regulation that prevents the new growth of the game industry’, there are points to discuss. It is a matter of how far to see the meaning of ‘game products’ and the scope of ‘meandering’ written in the current law.
Currently, game products are legally combined with general video games and arcade games. The problem is that it is difficult to get the general public’s sympathy to see that using arcade games and enjoying console games are equally ‘using games’.
In this context, it is worth noting the amendment proposed by Lee Yong of People’s Power recently. The bill of use of the House of Representatives divides the concept of a game product bundled together into an arcade game product and a general game product. An official from the House of Representatives Lee Yong explained, “We expect that it will serve as an opportunity to separate digital games and specific place-type games to establish a regulatory system suitable for each area, and to come up with reasonable regulatory measures suitable for reality.” It was not stated whether the amendment was intended for P2E games. Even if the amendment is passed, it is unclear whether the P2E game regulation will be lifted.
Then there is the meandering range. Luck and currency exchange are important for the Game Committee to judge speculativeness. The reason Gacha, the current major BM, has avoided the speculative network is due to the lack of cash flow. Although it is against the terms and conditions, it is worth considering whether it is possible to put items obtained in the game with cash and those who are lucky enough to earn a lot of money through the story of the sea. Compared to ‘Mir 4 Global’, which has become a representative P2E game, it is difficult to see the same problem as getting black iron in the game and making money from the sea story.
As P2E games become more important, discussions about the concept of game products and the scope of speculation are expected to continue.
P2E, a game reborn as a platform
Increased value of issued coins and stable commission sales
P2E has become a new avenue for the stagnant domestic game industry. The game industry seems to have chosen P2E as a new business after BM. The reason is the host. Game companies that are often passive about P2E say that “fun is more important”. On the other hand, game companies that promote P2E seem to say that “making money is the most fun”. Among existing games and P2E games, P2E games are more competitive. Fun will become important when competing against P2E games.
In fact, WeMade said in its business report, “In the game industry, launching a global game has been a homework for a long time, and the center of it is the most difficult to attract members.” It is easy. This has been verified in Mir 4 Global.”
At the same time, the game industry aims to make the games it serves as a single platform. Until now, game items had a wall with reality. Item cash trading was like a black market while the game companies closed their eyes. Now, game companies are trying to link with reality through NFT technology. The fee generated in this process is reborn as a stable means of sales for game companies.
As of the 25th, the market capitalization of Wemix Coin issued by WeMade is approximately KRW 2.5 trillion. Coin issuance does not cost much. Only 73.79% owned by Wemade. For WeMade, as the popularity of ‘Mir 4 Global’ increases, the value of the Wemix coin also increases, which has the effect of increasing the platform fee income.
The domestic P2E game market movement is divided into four major categories. △ Wemade and Com2us heading to the global market, △ NCsoft and Netmarble, △ SkyPeople who want to play in Korea △ The Sandbox, which aims for the domestic market are representative.
Wemade went global in the first place as the domestic law bans P2E games. And it is producing results. CEO Jang Hyun-guk raises questions about the domestic game law as being different from reality, but does not push ahead with domestic business. Com2uS is reorganizing its organization to fit P2E and preparing global game services.
NCsoft and Netmarble are monitoring the situation while preparing internally. Considering the size of the company, there is no technical problem to immediately enter the P2E game. However, they are cautious about legal review. In the case of NCsoft, the domestic market share is larger than that of the global company. Like Wemade, the game situation is different to pass the domestic market and focus on global services.
SkyPeople intends to provide P2E service in Korea. When the Game Committee defined ‘Five Stars for Klaytn’ as an illegal game because of its speculative nature, SkyPeople filed a lawsuit. It is the will to legally serve legally in Korea after receiving the judgment of the court. It is the toughest move among game companies.
The Sandbox (TSB) wants to serve as a global game company in Korea. TSB, which developed a platform to which NFT is applied, is examining the situation of domestic game laws. From the perspective of TSB, Korea is a market with high NFT understanding and P2E demand. Korea also has the second largest demand for sand coins issued by TSB after the United States. TSB values performance in Korea to make its service successful.
If you look at the global P2E game market, it is expected to develop from luck to effort and creation. CryptoKitties and Exi Infinity, which can be called early P2E, are the lucky ones. However, it is difficult to escape the speculative controversy in Korea for P2E by luck. ‘Mir 4 Global’ is an effort model. You can earn profits by continuously mining black iron. Important luck was missing in the speculative judgment. After that, creativity will be important. TSB added P2E to existing games, such as Minecraft and Roblox, where creation is important. Depending on the popularity and fashion among users, the value may increase significantly.
In the end, the clue is in Parliament
Korea Game Industry Association preparing P2E report
The domestic P2E game issue will eventually be resolved only by the government and the National Assembly. Whenever Chairman Kim Gyu-cheol mentions P2E games, the premise is that it is the ‘current law’. Under the current law, the Game Committee cannot do anything about it, so the National Assembly must step in and amend the law to unlock the clues.
Accordingly, the Korea Game Industry Association, representing the domestic game industry, cautiously approaches the National Assembly. We are not calling for the elimination of P2E game regulations right away. The association is preparing a report to persuade the National Assembly. It’s just about getting lucky now.
The association held a private meeting on the 17th during a visit to G-Star of the National Assembly member. An official who attended the event said, “The association is investigating the current status of overseas NFTs through research services.” “It is difficult to discuss the policy direction yet. I said the same,” he said. In addition to the association, there were Cho Seung-rae of the Democratic Party of Korea, Jeon Yong-gi of the Democratic Party, Ha Tae-kyung of People’s Power, Heo Eun-ah of the People’s Power, and Ryu Ho-jeong of the Justice Party.
The association is known to have been relatively cautious about bringing up NFTs. An official from the association said, “At this stage, it is difficult for us to express our position to the National Assembly or any media company.
Parliament is in the process of finding out. Some lawmakers are interested in NFT issues in the game and are looking into them. In the end, the action in the National Assembly is divided into whether to remove regulations as the game industry insists, or whether speculative protection should be maintained as the Game Committee’s opinion. It has not yet been decided what action to take, and it is weighing the pros and cons.
A National Assembly official predicted that it would not be easy to resolve the NFT regulations. This is because the speculative issue is the most difficult topic for lawmakers to carry. The official said, “In order for P2E to be officially introduced in Korea, it is necessary to revise the ‘prohibition of gift giving and promotion of speculation’, but it is not easy to do. paid out As a member of the National Assembly, the parental group risk is a risk that you do not want to bear.
On the other hand, there are a lot of general gamers who are negative about P2E. It’s a rare moment when general gamers and parent groups agree.