They don’t have a sustainable way to keep paying players.
Money must come from somewhere
New players
Membership
Play to win
Giving rich players unfair advantages
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The games aren’t fun when you take away the ‘earn‘ part.
Would you pay Axie Infinity money to play game?
Traditional games are fun! People pay those companies millions of dollars to play them - and they expect no monetary return.
A ton of play-to-earn games are basically just financial ideas, where the marketers have tried to add a game aspect to attract users, i.e. customers.
Human motivation is volatile when paired with fluctuation rewards.
External rewards reduce internal motivation.

Many games don’t need blockchain technology.
From Youtobe-Whiteboard Crypto
