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Introduction to Traditional Gaming

Co-written by Raphael Bustamante, James de Jesus, and Gabriel Paningbatan
Key Takeaways
  • Off-chain gaming, or traditional gaming, has been the norm for most games throughout the years.
  • Traditional gaming typically entails all game data and assets to be stored on centralized servers controlled by the game developers. 
  • Traditional gaming operates through various business models such as retail sales, subscription services, in-game purchases, and freemium/free-to-play models. 
  • Traditional gaming faces challenges such as  issues with ownership and control, centralization and censorship, security and privacy, in-game content charges, and economic limitations

Are you into video games? We sure are! From Super Mario to Call of Duty to Tetris, Mobile Legends, Pokemon, andeven Candy Crush, video games have long captured most of our happy hours. Helping people temporarily escape from reality, gaming has evolved significantly since the release of the very first video game. 

But, what if we told you the evolution isn’t over? Gaming is constantly advancing, and the latest upgrade is blockchain technology. Yup, you read that right! Blockchain and cryptocurrency aren’t just for investing or transferring money. They’re opening up a whole new world for gaming as well! 

Let’s level up our knowledge together in this course about On-Chain Gaming!

Overview of Traditional/Off-chain Gaming

Before we dive in the new buzz, let’s take a step back and explore how gaming has functioned up to now. Off-Chain Gaming or Traditional Gaming is how most games have operated through the years. Traditional gaming typically entails all game data and assets to be stored on centralized servers controlled by the game developers. 

Think of traditional gaming like the banking system. In this model, the game developer acts as the central bank, managing the creation and distribution of in-game currency and assets. Just as a bank manages your money, the game developer oversees your gaming progress and possessions. For example, a player of Fornite relies on Epic Games, while a player of The Legend of Zelda depends on Nintendo. 

Video games have gone through significant changes over the years to become what they are today. The very first video game,Tennis for Two, was created in 1958 by physicist William Higinbotham to enhance his scientific exhibits. It was a simple game on an analog computer where players controlled paddles to bounce a ball back and forth on an oscilloscope screen.

Recreation of Higinbotham’s “Tennis for Two” featured at the Museum of the Moving Image

Following Higinbotham’s pioneering work, many game developers built on his idea, leading to more complex video games. The 1970s saw the rise of arcade games like Pong and Space Invaders. In the 1980’s, home consoles like the Atari 2600 and Nintendo Entertainment System (NES) became popular. The 1990’s introduced personal computers and Local Area Network (LAN) parties, revolutionizing multiplayer gaming  by allowing different PCs to connect with each other on-site. The 2000s really hit it off for gaming with the widespread accessibility of the internet, leading to the rise of online multiplayer games like World of Warcraft and the advent of mobile gaming where people could just play straight from their mobile phone! 

As of today, traditional gaming operates on three major platforms: 

  • Consoles: Devices such as the PlayStation, Xbox, and Nintendo Switch are dedicated gaming machines. These are known for their exclusivity deals with game developers and for providing a standardized gaming experience. 
  • PCs: Personal Computers (PCs) offer a more customizable gaming experience, allowing players to tailor their hardware and software to their preferences. They typically run on Windows, Mac, or Linux. PCs also support a wide variety of games. 
  • Mobile Devices: Smartphones and tablets running iOS or Android offer a highly  accessible way to play games due to their portability and simplicity. While they may not support as many game titles as consoles or PCs, they have been incredibly popular for casual gaming. 

Business Models in Traditional Gaming

Traditional games operate through various business models: 

  • Retail Sales - Traditionally, video games were sold through retail channels, with players purchasing physical copies of games from stores. This model has evolved to include digital downloads, where games are sold for a one-time fixed price. Examples include Grand Theft Auto V, God of War and The Last of Us. All content of the game is readily accessible upon purchase. 
  • Subscription Services - Recently, subscription services have become a significant part of the gaming industry. Services like Xbox Game Pass, PlayStation Plus, and EA Play offer access to a vast library of games for a monthly or annual fee. This model provides a steady revenue stream for companies and allows players to access a wide range of games without purchasing each one individually. They may also offer some additional perks like exclusive content, early access to new games, and discounts. 
  • In-Game Purchases - In-game purchases, or microtransactions, have become common in modern games. Aside from buying the base game, this business model allows players to purchase additional content such as cosmetic items, power-ups, and expansion packs. Examples of games with microtransactions include the Assassin's Creed series and Elder Scrolls Online. 
  • Freemium/Free-to-Play Models - The freemium/free-to-play model has become especially popular in mobile gaming. In this model, the base game is free to download and play, but players are encouraged to make in-game purchases to enhance their experience, such as through skins or additional content. Some examples of successful games with this model include Clash of Clans and Mobile Legends. 

Challenges and Issues in Traditional Gaming

Despite its long history and diverse platforms, traditional gaming has its fair share of challenges. 

  1. Ownership and Control
    • Players don’t truly own their games. Most of the time, purchasing a digital copy of a game often means you don’t have indefinite access. Game developers and publishers retain control over all in-game content, so players may lose access to all of these if a game shuts down or if terms of service change. This lack of true ownership can be frustrating, particularly for those who invest significant time and money into a game.
  2. Centralization and Censorship
    • Traditional gaming is inherently centralized, with game developers, publishers, and even governments controlling game servers, content, and player data. This can lead to censorship and the removal of content without player consent. For example, games like LittleBigPlanet have seen user-created levels and content removed by developers for violating terms of service. Players often expressed frustration, particularly when they were not given sufficient notice or an opportunity for appeal, since they’ve spent significant time and money into these games.
  3. Security and Privacy Concerns
    • The centralized nature of traditional gaming means player data is stored on centralized servers, making it susceptible to hacking and data breaches. Players have limited control over how their data is used or shared, raising privacy concerns. This issue is highlighted in recent data breaches involving Capcom and Sony where some player information is believed to be compromised. 
  4. Economic Limitations
    • Imagine being so invested in a game that you kept spending on microtransactions for additional content. After a while, you decide to stop playing, but you can’t sell or trade your in-game items to another player. This is a common problem with traditional games. There are limited ways for players to monetize their in-game achievements or assets. Traditional games also typically restrict trading, selling, or transferring in-game items outside of the game's ecosystem. This lack of economic opportunity is a huge downside for players who invested time and money into games but cannot reap the rewards from their efforts. 

Fortunately, a new way to address these problems has emerged with On-Chain Gaming! Let’s check it out!

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