The challenges facing Web3 games development
Web3 gaming has to jump some hurdles before it can secure greater mass adoption
With a new year underway it’s time to look at Web3 gaming and how the market could change.
Web3 games utilise blockchain technology, marking a shift from traditional gaming platforms. These digital games often grant players the ability to have complete ownership over their in-game assets. Online wallets can be used to hold gaming collectibles and in-game assets which act as an integral part of the iteration of Web3 games.
In 2021 there was a big crypto hype that created a buzz around much of blockchain. This was dominated by the concept of non-fungible tokens, but as time went on ties to Web3 gaming emerged. The concept of gamers owning their assets spearheaded new development ideas. Investments in 2021 reached peaks of over $1 billion.
A tough 2022
Going into 2022 however, things began to take a downward turn. Crypto found itself battling the crypto winter with the value of deals being down. Seed funding rounds were also seen to take a significant drop. In addition, some bad players cast a shadow over the market with the likes of the FTX collapse. Despite these issues, many still have faith in the Web3 space, CEO of Animoca Brands, Yat Siu spoke out on the events of FTX. Siu noted that while many may be feeling discouraged it’s important that work continues into Web3.
Gaming is set to play a big part in what Web3 can accomplish and is projected as the next big vertical. A recent survey conducted by Coda Labs and Raptor PR showed that 75% of respondents believed that they would be working with Web3 aspects in the future. However, some believed that Web3 wouldn’t be around for long and that many Web3 games are believed to be scams.
While there’s potential for blockchain to grow through Web3 gaming there are various challenges that these projects need to face. One of the most important aspects is player adoption. Web3 gaming for many is still a new concept, one that many are dubious to jump on board with. A key aspect of mass adoption will be the games themselves.
Making web3 games better
Making games isn’t easy, and just because a team may understand blockchain that doesn’t mean they are going to create a good game. Even if the Web3 aspects are working great, players will lose interest if the game itself is lacking. As with most emerging markets, people jump on the hype train who maybe aren’t suited for its long-term success. As that issue fades out, hopefully, the Web3 space is left with passionate developers who can focus on the future quality of Web3 gaming.
Some titles have already made promising steps in Web3. Sky Mavis‘, Axie Infinity gained intrigue with its ability to collect and own NFT unique digital pets. These pets can be traded on NFT marketplaces and players can earn Axie Infinity Shards. These shards act as the game’s governance token. It hasn’t all been plain sailing as developers struggled with solidifying the games ecosystem. Sky Mavis also suffered a $625 million cryptocurrency theft. This money was later reimbursed.
A large issue that faces Web3 projects is bots and scalpers. Concerns regarding blockchain scams and bots occupying Web3 gaming are major issues that prevent more players from exploring these titles. Since many are using online wallets for the first time, hackers and scammers are hoping to capitalise on people’s inexperience. Going forward, projects will need to ensure that users have wallets that are easy and safe to use.
For Web3 gaming to expand to the next level developers will be looking toward creating better games, with sustainable tokenomics. A Web3 game that is simply bad to play, will die early on. However, a good game with a poor tokenmics system will struggle to maintain longevity. These aspects, along with the entry barrier may all prove critical to achieving a wider audience.
Many Web3 titles require the user to pay high-level entry price, this often turns players away before they can truly experience the game. Lower entry requirements, or a longer period of being able to play without paying could see more users commit in the long run. Games such as NFT shooter Ev.io allows gamers to play the game without an online wallet or even a sign-up process. While they won’t have access to the Web3 earning aspects of the game they can at least play and then later sign up to take part in the blockchain earning aspects.
With a turbulent 2022, many will be hoping that this year proves better for growth and adoption. According to MarketsandMarkets the global blockchain gaming market is projected to grow from 4.6 billion to 65.7 billion by 2027. With a hopeful return of investment funding for new projects, and a better view of what is needed there’s still much hope to be had for Web3 developers. More studios are trying to achieve a triple-A standard quality, such as the recently launched Bless Global which managed to secure 2 million pre-registrations.
This year will be an interesting, and important one for Web3. Across the year we will be following the biggest developments and the games that could be integral to changing the space.