Game7, a community formed to accelerate the adoption of Web3 gaming, released the first comprehensive study of the Web3 gaming ecosystem. The report covers data from nearly 2,000 Web3 games, over 1,000 funding rounds, and almost 200 blockchain ecosystems. The podcast discusses the global player base and funding trends, country and company involvement in Web3, challenges and opportunities of Web3 game distribution, the evolving landscape of Web3 games, trends and predictions in Web3 game development, and the growth and future of Web3.
Web3 games have varied levels of integration with blockchain technology, with most focusing on tokenized economies and NFT integration to enhance gameplay.
The distribution landscape for Web3 games is evolving, with challenges in reaching players on mainstream platforms, but opportunities on mobile, browser, and PC.
Both startups and established gaming studios are investing in Web3 gaming, recognizing its potential for collaboration and innovation in the industry.
Deep dives
Web3 gaming is a diverse landscape
Web3 gaming encompasses a range of genres and stages of integration with blockchain technology. It includes games that have tokenized economies, where assets and transactions are recorded on a public ledger. Some games utilize NFTs for in-game assets or early access to content. There is also a growing interest in fully on-chain games, which aim to leverage blockchain technology for every aspect of the game, including the game logic and decision-making. However, the majority of Web3 games have a more lightweight integration with blockchain, focusing on tokenization and NFTs as a means to enhance gameplay and create unique experiences.
Distribution challenges for Web3 games
Web3 games face distribution challenges, with mainstream platforms setting restrictions and rules. While platforms like Epic Games have been more friendly towards Web3 games, their limitations can present challenges for game developers. Distribution on consoles is currently limited, with Sony and Microsoft not fully embracing blockchain integration. Mobile, browser, and PC remain the primary platforms for Web3 games, with developers leveraging the opportunities each platform provides. The distribution landscape for Web3 games continues to evolve, with developers exploring new ways to reach players and create engaging experiences.
Defining Web3 game integration
Web3 game integration varies across titles, with different levels of blockchain utilization. A majority of games focus on tokenized economies or NFT integration for in-game assets or special content access. Some games go beyond this and record game history on the blockchain to ensure transparency and trust. Fully on-chain games, though a smaller percentage, aim to leverage blockchain for all aspects of gameplay and world-building. The level of integration with blockchain technology is diverse, with most games opting for a lightweight integration that enhances gameplay and offers unique features.
Diverse perspectives on Web3 gaming
Web3 gaming has attracted interest from both startups and larger established gaming studios. While startups have been at the forefront of Web3 game development and experimentation, larger studios are also entering the space. Established gaming companies like Ubisoft, CCP Games, Bandai Namco, Sega, Konami, and Square Enix are exploring Web3 gaming and investing in blockchain integration. As the industry evolves, there is growing recognition of the potential of Web3 gaming, with more collaborations and innovations expected in the future.
Importance of Game Development Adaptation
In the podcast episode, the speakers highlight the significance of game developers adapting to the web 3 ecosystem. They emphasize the need for developers to focus on game innovation and user experience rather than solely relying on the blockchain or specific chains for success. The speakers discuss how selecting the right chain can influence user acquisition for web 3 games, but stress that the IP and gameplay should be the main focus. They predict that as the industry matures, game developers will prioritize their projects and the value they offer, rather than the chains they are built on.
Challenges and Landscape of Blockchain Networks
The podcast episode addresses the challenges and landscape of blockchain networks in the context of web 3 games. The speakers highlight the overwhelming number of chains available, which poses a challenge for game developers in terms of decision-making. They discuss the importance of considering factors like speed, security, liquidity, and customization when choosing a chain. The speakers also mention the emergence of regional networks that cater to specific cultural and regulatory contexts. They expect consolidation, closures, and team/product consolidations as the industry evolves and more games are launched on different chains.
Game7, a community formed to accelerate the adoption of Web3 gaming, recognized that there had to date not been a comprehensive overview of the entire Web3 ecosystem, and decided to do something about. On November 13th, they released the very first truly comprehensive study that covers the past 6 years of Web3 gaming, using objective and neutral primary research methods. The report captured and examined data from almost two thousand Web3 games, over one thousand funding rounds, and almost two hundred blockchain ecosystems.
What can this data tell us about the state of Web3?
To answer all our questions your host, Niko Vuori, talks with one of the primary authors of the report, George Isichos from Game7, with additional insights from Naavik’s own Web3 analyst, Devin Becker.
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