Kieran Warwick says AI tools will bring play-to-earn back, and Illuvium could gain from it - eGamers.io

Play-to-earn gaming is set for a resurgence thanks to artificial intelligence tools, according to Kieran Warwick, co-founder of Illuvium. In a recent post on X, Warwick declared: I cannot believe I'm saying this, but Play-to-Earn is going to make a comeback. He argues that AI has dramatically reduced development costs and time, making high-emission P2E games with short lifespans viable once again.

Warwick's stance represents a significant shift from his previous position. He admits he was once one of P2E's biggest opponents, calling the model unsustainable and comparing it to a Ponzi scheme. While his economic assessment remains unchanged, the technological landscape has evolved to make these games worth developing.

The new formula Warwick describes involves three key components: extremely high emissions, a simple game built around a farming mechanism, and easy access through mobile or browser. He predicts these games will have short lifespans, with players eventually moving on as yields diminish. By then, developers could already be working on their next title.

Short-term games, long-term impact

Warwick envisions a return of headlines about players in developing countries earning more from games than traditional jobs. However, he acknowledges the playing experience will be stretched thin, with users primarily tracking yields and timing their exits. There will be almost zero loyalty to most of these games, he wrote.

He likens this emerging trend to DeFi Summer and sports betting, emphasizing that crypto's permissionless nature ensures these games will be built regardless of approval. Warwick warns that many participants will lose money, though he believes the model is economically viable for developers.

AI changes the economics

Previously, creating even basic P2E games required significant time and investment. Teams like Axie Infinity attempted to build sustainable economies with long-term token demand. Warwick cites Axie Infinity as an example where SLP issuance eventually outran burning, forcing teams to reduce rewards to rebalance the economy.

AI has fundamentally altered this calculation. Warwick points to Roblox as evidence of how quickly simple games can grow, citing a game called Grow a Garden that was built by a 16-year-old in days and later acquired by Splitting Point Studios. It reportedly earned $12 million in one month after reaching 21.6 million concurrent players.

Potential benefits for Illuvium

Despite Warwick's controversial take, he believes this trend could benefit Illuvium. With many declaring crypto gaming dead just two months ago, a successful wave of new P2E games could reignite interest in the sector. Warwick hopes players drawn to quick-yield games might discover deeper titles like Illuvium.

The studio has faced challenges recently, implementing wage cuts in August 2026 to extend its runway beyond 12 months when monthly revenue fell below $10,000. Despite this, development continues on Illuvium: Arena and The Overworld, with recent updates and events planned through late October.

Warwick concluded with an optimistic forecast: I think this gets stupidly hot again. And much faster than people expect. The Illuvium team continues working on its games while navigating the current market downturn, with Warwick having won a seat in the Main Council during Epoch 11 elections.