NFTs are unique digital collectibles on the blockchain.
Some offer a battling experience with collectible characters like CryptoBlades and Axie Infinity, and others use collectible cards like Sorare.
A newer, play-to-earn model also allows you to generate income from NFT games which we'll discuss more later.
Rather than earning a fungible ERC-20 token like SLP in Axie Infinity or SKILLS in CryptoBlades, you earn NFTs that represent collectible items.
There are few possible ways you might lose your NFT: You attempt to transfer it from your wallet to another that doesn't support your NFT's token standard.
Some offer more traditional video game experiences, and others depend mainly on the collectibility of NFTs.

Source - https://academy.binance.com/en/articles/what-are-nft-games-and-how-do-they-work?ref=AZTKZ9XS&utm_source=BinanceTwitter&utm_medium=GlobalSocial&utm_campaign=GlobalSocial

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