On-chain data tracker DappRadar recently reported that another $600 million was Inserted into Web3 gaming project Due in the third quarter of 2023, bringing the total investment so far this year to more than $2.3 billion.
Another report from the blockchain gaming community, Game7, it shows Stagnation in Web3 gaming despite market improvements.
Interest in Web3 gaming – a general term used to describe ecosystem habitat Blockchain-Based Video Games – is clear and remains unaffected by the so-called “crypto winter”.
After a prolonged bear market, crypto appears to be getting ready for the next bull runAnd Cointelegraph contacted industry players to characterize the current landscape of Web3 gaming.
According to Immutable product marketing head Michael Powell, the Web3 gaming ecosystem saw the relative calm of the broader crypto industry as a positive thing.
“In markets driven by speculation and hype, it is often easy to get distracted and chase the shiny object,” he told Cointelegraph.
Web3 gaming companies that used Serenity to create products with real value and long-term game plans were the main drivers behind investor interest, Powell said:
“We are seeing a shift away from a play-to-earn approach to a more sustainable gameplay model that emphasizes true digital asset ownership and creates thriving economies for games.”
Omar Ghanem, co-founder and CEO of Web3 gaming platform Gam3s.GG, said several highly anticipated Web3 games are now on the horizon, and “the space has matured somewhat compared to the last two-three years.” of quality and standards.”
While the numbers aren’t as attractive compared to 2022, Uluk Yuka, co-founder of Web3 Gaming-focused Curator Studio, told Cointelegraph that developer activity is increasing for a number of reasons, including Web3 Gaming’s potential for mass adoption, its unique Value proposition included. and the opportunity for portfolio diversification and strong community support.
Yuka noted that investors are also eager for early-stage investment opportunities, which makes the Web3 gaming space an attractive option for investors despite the relative silence of the crypto market in the third quarter.
Balancing Web3 Gaming
DappRadar reports that the top game, Axie Infinity, saw transaction volume of over $90 million – almost double that of its runner-up, Gods Unchained, at $55 million.
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The rest of the list tells a similar story, indicating a “concentration of success,” Can Azizoglou, CEO of Web3 startup incubator Coinox, told Cointelegraph.
He said emerging trends like casual gaming studios are indicative of a changing landscape. “This diversification may lead to a more balanced ecosystem over time.”
Gam3s.GG’s Ghanem points out that each team’s approach to the top 10 list makes a significant difference: “Axie Infinity has always been focused on the Southeast Asia market with countless scholarship programs to grow its user base as much as possible. Axie continues to top these player charts as a result of both the region’s Web3 gaming appetite and the team’s expansion strategy.
Gods Unchained and many others follow a different approach and are not necessarily focused on the same development goals or demographics, Ghanem said.
“I don’t think it’s a negative reflection of the industry or any of those sports. If anything, it shows just how influential Axie IP still is in this space. Like the Steam charts, most players top those lists, with thousands of smaller titles struggling to maintain a fraction of player activity.
According to Yuka, the dominance of one game can create a barrier for new players and developers to enter the market, limiting diversity and innovation in the industry.
Immutable’s Powell said that as investment brings new player communities as well as new top-tier games to market, “we expect to see more innovation and more diversity among game titles with the potential to engage a broader player base.” will continue.”
Daiki Moriyama, director of Oasis Games, stressed that the global video game market is a $200 billion market, and the blockchain gaming industry is just beginning to grow. “At this point, various game developers are in the process of challenging themselves to see how they can create unique experiences that are only possible with blockchain.”
no more games to earn
Play to Earn (P2E) This was undoubtedly the biggest trend in Web3 gaming in 2022. Enabling users to earn in-game assets with monetary value in the real world also attracted audiences other than gamers to the field. However, this became controversial when both studios and gamers leaned too heavily on the “earnings” side of Web3 gaming.
players have started searching Games that focus on the actual gameplay experience. A report from the Blockchain Game Alliance (BGA) in early 2023 suggests that the top factor in advancing blockchain gaming should be game improvements, not P2E implementation.
While Moriyama believes the P2E element will remain a driving force for blockchain games, he stressed that there has been more emphasis on the P2E element in Web3 gaming thus far. He said this problem could be solved by using widely recognized IPs and improving user experience on a large scale.
Azizoglou agrees that the Web3 gaming landscape is no longer just about P2E: “There is a shift toward diverse gaming experiences, which reflects changing player preferences.” While P2E still remains popular, he said the sector has grown to include a wider range of gaming experiences.
Yuka explained that there is a shift from using tokens as currency to using non-fungible tokens (NFTs) as a business model. This means that instead of game studios relying solely on in-game purchases or downloadable content, they now have the option to incorporate player-based economies through royalties and NFTs:
“NFTs provide a way for players, like game founders and employees, to have a financial stake in the game. This essentially makes players more involved with the success of the game, and thus more likely to become enthusiastic stewards of the game they love.
Some founders survived 2020 into 2021 with really low-quality products, Ghanem said, “because the space was so new and players thought, ‘It can’t get any better than this.'”
This time, Ghanem believes that even if incentives like P2E remain the same, the quality of each title is much better. “I think 2024 will further highlight this with titles like Shrapnel, Off the Grid, Trivers, and Wildcard, which will really push the limits and definition of Web3 gaming.”
When the bull run strikes
As industry executives say, the Web3 gaming space has taken advantage of the crypto market lull to steal the spotlight. But what will happen when the next bull season begins, and people are once again focused on price tickers?
Although it is difficult to predict the future of the market, according to Yuka, interest in Web3 gaming may wane during a bullish period as investors turn their attention to other areas of the market.
“However, the underlying technology and potential of Web3 gaming may continue to attract users and developers, maintaining interest in the long term,” he said.
“The integration of blockchain technology into traditional gaming may continue to drive interest in Web3 gaming even during a boom period. Ultimately, Web3 Gaming’s success will depend on its ability to provide unique and engaging experiences for users regardless of market conditions.
Ghanem believes that interest in Web3 gaming will not wane with the boom. “If anything, we are seeing more and more people entering this space from a gaming perspective,” he said, adding that only a fraction of the three billion gamers worldwide are currently in the Web3 gaming space.
“We expect interest in Web3 gaming to grow as gaming is the industry with the most near-term applications and utility for blockchain technology,” Powell said.
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He said Immutable expects massive growth in diverse game types across different ecosystems due to active investment in Web3 gaming, interest from major gaming companies, and improvements in developer tools. Gaming tokens and strategic partnerships are strong signals that the sector is poised for significant growth in the near future.
As the industry evolves, staying ahead of trends and constantly innovating will be key to taking advantage of the future boom, Azizoglou concluded:
“We loved playing games even before Web3, so we’ll keep that going.”
