The Evolution and Challenges of Web3 Gaming in 2024

The video game sector is undergoing a significant transformation thanks to the introduction of web3 technologies. These innovations are changing the fundamentals of game development, gameplay, and monetization strategies. Termed web3 gaming, this emerging trend advocates for a decentralized, player-focused model, enabling players to have actual ownership of their digital assets, influence the direction of game development, and receive tangible rewards. The impact of web3 on gaming is substantial, with projects like Axie Infinity and Gala Games leading the way by showcasing the vast capabilities of this technology. During the last peak period, the value of their digital currencies surged, drawing considerable attention from both the gaming community and investors.

How the Previous Cycle Affected WEB3 Gaming Today and What’s Different

Many experts are assured that Web3 gaming is still in its infancy but expect it to grow rapidly in the coming years. During the last cycle, many game developer companies piggybacked off Axie Infinity and created Play to Earn games. Entrepreneurs in the field report that the Web3 gaming sphere has the necessary technology to enter the next chapter of its lifespan. However, we need to wait a few more years to bear the fruit of the labor because game development is a hard task overall.

For example, we need not forget the GDD that needs to be developed and implemented iteration after iteration to iron out mistakes and solidify the vision. Moreover, creating a Web3 gaming title is not just creating a game. As a game developer working in the Web3 space, you need to guarantee that your game works both in Web2 and Web3 for it to be a success.

Additionally, the market is completely different now than a few years ago. What was widely accepted in 2021 can not be expected to be tolerated now. Consumers in the field are now much more knowledgeable about the production cycle and the product itself, so game developers need to implement systems that are way more comprehensive and timely in their games. Web3 game developers now need to look at the enjoyment of the game, not just the financial benefits. However, experts believe that we need many more minds and people to come into the Web3 space to transform in this direction. In their words, for the Web3 gaming sphere to become more than just financial project after financial project, we need fresher minds in the industry.

Game developers, especially now, have the data to conclude that finding a balance between player enjoyment and financial benefits is harder than ever. The simple fact that feeds this is that gamers do not enjoy NFTs or crypto, and NFT and crypto enthusiasts do not often play games. Striking a balance in this sector has now become extremely challenging and requires a lot more effort from game developers than previously. In years past, crypto games could rise in popularity astonishingly quickly simply because they were new and completely different from what many have experienced before.

So, How Do Game Developers Do It?

Well, the simple answer to this question really is: It depends. But we can give you some industry examples to help you grasp the reality and gravity of the question.

For example, we want to mention the recent Cross the Ages x Watch Dogs collaboration. Ubisoft’s participation, along with other key partners and investors like Animoca Brands, in a $12 million investment round in 2022 set the stage for the anticipated collaboration between the entities.

This partnership is marked by introducing a novel card series in Cross The Ages, incorporating 51 cards that draw inspiration from Ubisoft’s popular web2 action-adventure series, Watch Dogs. The series will spotlight 24 characters from Watch Dogs, including the main character, Aiden Pearce, his confidante, Clara Lille, and another key figure, Marcus Holloway. The rollout of this collection is scheduled to begin on April 3rd, with an initial release of 17 cards, followed by monthly drops over the next three months, totaling the collection.

Such partnerships are incredibly fruitful for fresh new Web3 games as they pull on the gamer pool of a franchise much older than yours. Cross the Ages only launched in 2023, while Watch Dogs has been in the market since 2014. You can easily imagine how much hype and excitement can be generated from the reveal of such a collaboration and how many people can be onboarded from the Web2 gaming sphere to the Web3 gaming sphere.

Fractionalized NFTs are also a comprehensive tool for onboarding new players. Experts believe that the ability to fractionalize and share ownership over an NFT can potentially onboard a huge number of players onto your game because the bar for entry is much smaller. To successfully play the game, you do not need a full NFT; you only need a few pieces of it. Moreover, this mechanism incentivizes community building and connection management since you and your friends playing the game can pull in your fractionalized NFTs to create more than the sum of its parts.