The world of Web3 games has been in development for several years now. Studios in this space have found it difficult to gain the trust of Web 2 gamers and overcome image issues stemming from the “play and earn” era, and traction has been slower than expected. So what will it take to encourage more mainstream gamers to pick up and play his Web3 games?
As the crypto bear market continues, investors and startups alike are looking to Web3 games to answer that very question (and especially) to attract the next wave of users to crypto and the broader Web3 industry. and diving deeper into emerging areas.
To find out how the industry thinks about the next stage of growth for Web3 games, we spoke to eight industry leaders about the future of the field, how they’re tackling challenges, and more. Ta.
For Ed Chang, Head of Games at Ava Labs, the Web3 industry is definitely still young, but he is hopeful that there is room for Web3 elements to complement and add value to the gaming experience. “We want every game to leverage blockchain elements, whether it’s physically owning items, playing and earning rewards, or building payment rails for microtransactions, creators, and modders. I believe it can be done,” he said.
We’re expanding our horizons and looking for more founders and investors to join our TechCrunch+ survey. There, we survey top professionals about industry challenges and opportunities.
If you are a founder or investor and would like to participate in future surveys, please fill out the fields below. this shape.
However, some of these people pointed out that there are still some fairly difficult hurdles to overcome before Web3 gaming becomes mainstream.
“The biggest challenge is that we are still figuring out how to design Web3 games and deciding as an industry whether to prioritize the ‘play’ or the ‘earn’ part,” Solana Foundation said Tiffany Dong, Senior Associate of Gaming. .
We’re also tackling Web3’s very obvious UX (user experience) issues. Robbie Ferguson, co-founder and president of Immutable, said: “Most Web3 services expect users to set up a new wallet and connect it to the platform. This already includes multiple inconvenient steps that can lead to catastrophic losses if not done correctly. There’s also the fact that this process typically needs to be run repeatedly for each service.
Still, the industry appears to be learning quickly. Dong points out that Web3 game developers first focus on building games that are engaging and fun for the community, and blockchain.He points out that he focuses on complementing the experience without using technology to define it. Did.
As for the play-to-ear model, it appears to be coming to an end. Carlos Roldan, CEO and founder of Elixir Games, noted that the term is “widely misused,” especially in the context of pyramid schemes and pyramid schemes that capitalize on trends.
“This exploit took advantage of the play-to-earn trend, which was particularly popular in 2021-2022. Since the trend, the term has become less commonly used, and the industry has changed the focus to We are moving towards more accurate wording that better aligns with the true gaming experience, such as “Play and Earn” or “Win and Earn.” “If I had a choice, I would stick to ‘playing for fun,'” he said.
Read this article to learn which regions are leading in the adoption race, how games can grab attention and stand out, and more interesting insights into the challenges and opportunities for Web3 games in the near future. Please find it.
Here’s what we investigated:
- Chris AkhavanChief Gaming Officer; magic eden
- tiffany donSenior Associate, Games; solana foundation
- ed changHead of Games Department, Eva Institute
- Carlos RoldanCEO and Founder, elixir game
- michael wagnerco-founder and CEO, automaton (Developer star atlas)
- Urvit GoelHead of Global Business Development, polygon lab
- robbie fergusonCo-founder and President unchanging
- John LindenCEO, mythical games
Chris Akhavan, Magic Eden Chief Game Officer
How big is the current Web3 games market? And what do you think are the most effective metrics to track growth?
Web3 games are still in their early stages. In 2021, the industry saw its first wave of play-to-ear models. Naturally, that model wasn’t sustainable, but it got game developers and investors excited about his Web3 gaming opportunity.
It’s currently in a quiet period as many of the studios that were founded and funded at the time are developing games. I expect the market to remain mostly quiet until some of these second wave of his Web3 games start releasing next year.
The metrics you track are pretty much the same as you would track any other game, including installs, DAU, retention, and LTV. In addition to that, it also tracks his Web3-specific KPIs such as wallet and marketplace metrics.
What is the one word you would use to get people interested or skeptical about Web3 games on board?
Please be strong. The pipeline of games in development looks great. MapleStory, Eve Online, Limit Break, Azra, Shrapnel, Wildcard, Zynga, and many others are hard at work creating great games.
What are the biggest challenges facing Web3 Games in terms of adoption from both gamers and traditional game studios?
The reality right now is that building quality games takes a long time. The industry will have to be patient while the studio builds his next wave of Web3 games.
What do you predict will happen to the Play-to-Ear model over time? What other Web3 gaming elements will the industry move to?
The act of playing for money has disappeared. A functional economy that expects everyone to extract value cannot work. The industry is moving towards gameplay powered by Web3’s ownership and economic partnership between gamers and developers.
What types of Web3 games do you think will see the most adoption going forward? How have your expectations changed over time?
All genres that feature in traditional games can benefit from Web3 ownership, especially core genres with strong economics. [will benefit more]. I’ve always expected it since he entered the Web3 space a few years ago.
What advice would you give to other game developers to get noticed and stand out in this field?
Gone are the days of hype pre-selling NFTs and tokens for games that haven’t been released yet. At this point, it’s essential to focus on releasing great games that people want to play.
How can traditional and Web3 game studios work more closely together?
Whether it’s Web2 or Web3, game developers are always great at sharing knowledge, data, and case studies with each other. I think it applies to these two segments as well.
Which regions or countries will be at the forefront of Web3 gaming adoption over the next five years? Where will it take time to gain traction?
Asia appears to be leading the way in investing in Web3 games. Korean and Japanese game studios are particularly leaning towards Web3. As with basic play, I think the Web3 model is proven in Asia and will eventually be adopted in Western markets.
Tiffany Dong, Senior Associate of Games, Solana Foundation
How big is the current Web3 games market? What do you think are the most effective metrics to track growth?
Compared to the multi-billion dollar gaming industry, the Web3 gaming market is still new. However, the potential for growth is very high, and we know that crypto gaming could see an explosion in users and activity. As Web3 gaming matures and games move beyond the classic “play and earn” model, we are bullish on the future of the industry.
There are two important groups of metrics to track growth. It’s the number of players and the level of activity of those players. The daily, weekly, and monthly average number of users, number of unique wallets, and number of on-chain transactions clearly represent the momentum of the game and the level of excitement in the community.
What is the one word you would use to get people interested or skeptical about Web3 games on board?
You put a lot of time, attention, and money into the games you play. Web3 offers you the chance to truly own the fruits of your pleasure.
What are the biggest challenges facing Web3 Games in terms of adoption from both gamers and traditional game studios?
The biggest challenge is that we are still figuring out how to design Web3 games and deciding as an industry whether to prioritize the “play” or “earn” parts. Currently, Web3 game developers are focused on building games that are engaging and fun for the community first, and complementing that experience with blockchain technology, without using blockchain technology to define it. You can see the changes.
Web3 also faces some significant UX challenges, including wallet onboarding and fiat on/off ramps. Gaming may be the next vehicle for him to sign up his billion users to his Web3, but it still requires some education to fully participate in this field. Players do not need to open an exchange account just to participate in the in-game economy.
