Blockchain gaming is maintaining some impressive statistics from last year. In 2024, this field is expected to grow even more strongly as traditional game projects incorporate Web3 properties. But will that expectation become reality by the end of 2024?
The use of blockchain technology in gaming had a major impact on the industry last year. Despite the prolonged bear market, often referred to as “crypto winter,” the sector’s dominance and funding has increased. This continues into 2024, with traditional (Web2) gaming leaders shifting to Web3 gaming.
Despite this, there is still much room for growth in the blockchain gaming space, aiming to realize the full potential of the sector.
Key findings from 2023
Blockchain Gaming Alliance (BGA) shared a report on January 12, surveying 347 experts representing 252 projects or companies in the blockchain sector. The research gives a detailed insight into the current state of the gaming sector, impressive statistics along with some changes.
First, the blockchain gaming industry performed very well and showed growth despite adverse market conditions last year.
According to the survey, blockchain games can be considered a step forward from traditional games. It has several key benefits such as asset ownership, player reward model, and enhanced revenue business model.
These numbers depict a promising scenario, but there are nonetheless many shortcomings. Although the industry receives significant funding, the pace of development is not proportional.
“$18 billion has been poured into Web3 gaming in the past two years, but development has been significantly slower than funding. Many projects will go into operation in 2024 when they reach the 2-3 year mark of development. Achieving a reasonable Web2 standard (~50 million players) would triple web3’s user base overnight,” Robbie Ferguson tweeted.
Obstacles block the way
Blockchain technology still has a long way to go to reach its full potential in the gaming industry.
Focusing on several challenges, experts from Blockchain Game Alliance (BGA) identify the biggest gap as user experience. More than half of respondents agreed that onboarding challenges and player accessibility are the biggest issues in the sector.
Unix Gaming co-founder and CEO Mirko Basil Doelger said:
“The gaming industry has spent the last decade trying to simplify the onboarding experience. For all its innovation, blockchain gaming has been unintuitive and frustrating to introduce. Blockchain game developers should understand that the game needs to work for the players. We need to jump through the necessary hoops to attract players, instead of requiring players to jump through hoops to play the game. The reality is that if your blockchain game cannot provide an equivalent or superior experience, you will be eliminated.”
Additionally, fear of regulation is another common concern. This is something that the entire blockchain and cryptocurrency industry has been uncertain about for many years. But many gaming enthusiasts remain optimistic about the new year.
Far away from the golden age
Players’ attitudes towards the play-to-earn (P2E) model have changed significantly. P2E exploded in popularity in 2021 and 2022, but players of these games lost much interest as the prices of the assets they earned plummeted.
Currently, only 22.5% of candidates surveyed believe that P2E can be a factor driving the industry in 2024. This number is significantly lower than in 2021 when more than two-thirds (67.9%) of Respondents support this model.
Instead, the focus has shifted to nurturing the gaming experience and making adoption of these games mainstream.
In 2022, capital will need to be more innovative and demanding amid a deepening bear market.
“As a result, cheap point-and-click adventure browser play-to-earn games no longer receive the funding they once did. Instead, many advanced game studios integrating Web3 and AI into modern games, based on Unreal Engine are gaining more traction,” CIO Felix Hartmann of Hartmann Metaverse Ventures affirmed.
Meanwhile, Rowan Zwiers, co-founder of consulting firm Web3 Blockminds, considers the model explored as “unsustainable”. However, it became hot and paved the way for this year’s newest, more mature gaming momentum: free-to-play gaming. According to Pedro Heddera, head of research at DappRadar, this is the next generation of Web3 games:
“2024 is shaping up to be a decisive year of success or failure.”
Several others from the survey also offered their opinions on what’s to come.
