Over the past few days, the web3 gaming community has been buzzing with contrasting opinions regarding its future. Recent token generation events (TGEs) have not met expectations, leading to a dip in sentiment and a shift of liquidity towards meme coins. However, the success of products like Fantasy Top has demonstrated the resilience and potential of gamified experiences in this space. So, is web3 gaming dead?
Is Web3 Gaming Dead?
Jeremy Horn, a notable figure in both traditional web2 and web3 gaming sectors, shared his insights from his 2.5 years of experience in the industry. He emphasized that web3 gaming is not a monolithic entity but a diverse ecosystem with varying levels of crypto integration. You can read the original post on X (formerly Twitter) here. This article aims to summarize the main points from Jeremy's post on social media.
The Web3 Gaming Ecosystem
Jeremy categorizes web3 gaming into three primary types:
- Web3 Native Games: These games prioritize financial rewards over traditional gaming elements like visuals and narrative. For example, the current leading web3 game on DappRadar is Treasure Ship Game, an idle game with a daily volume of $1.52 million. Jeremy predicts that such reward-driven games will dominate the near-term future, focusing on short session lengths and quick liquidity shifts.
- Mobile Gaming with Digital Collectibles: This model already exists in games like NFL Rivals by Mythical Games and Xterio’s upcoming Age of Dino. These games generate revenue through in-game purchases and benefit from the added engagement and monetization that come from collectible ownership. However, they face the dual challenge of competing with free-to-play titles and integrating web3 elements.
- AAA Web3 Gaming: Although this represents the pinnacle for many web3 enthusiasts, it is also the most challenging to execute due to high costs, long development times, and the need for top-tier talent. This sector requires significant investment and innovation to compete with existing AAA titles and overcome the negative perceptions associated with crypto. Despite these challenges, Jeremy remains optimistic about the potential of AAA web3 games, highlighting Xterio’s efforts in this area.
Challenges in Web3 Gaming
Jeremy identifies several critical issues hindering the growth of web3 gaming:
- User-Friendly Technology: Non-custodial wallets pose significant risks that average consumers are not prepared to handle. Custodial wallets and semi-closed platforms offer more security and transaction control, making them more viable for mainstream adoption. Xterio aims to address these issues with its account abstraction technology, fiat payment integration, and secure, high-TPS, low-gas chain.
- Platform Guidelines: Major gaming platforms like Steam, consoles, and app stores currently restrict crypto integration. Until these platforms adopt clear guidelines, scaling web3 gaming, especially AA and AAA experiences, will remain a challenge. Xterio is actively engaging with these platforms to navigate these regulatory hurdles.
Xterio’s Strategy and Future Plans
Jeremy outlines Xterio’s strategic approach to navigating the current and future landscape of web3 gaming:
- Web3 Native Experiences: Xterio plans to focus on web3 native experiences, with several teams having these on their 2024 roadmap. Upcoming titles include Overworld Arena Season 1, Overworld Dungeon, and Overworld Kingdom, each designed to cater to different aspects of the web3 gaming ecosystem.
- Mobile Free-to-Play Gaming: With the imminent launch of Age of Dino, Xterio aims to demonstrate the viability of web3 gaming in driving installs, enhancing player lifetime value, and generating meaningful on-chain transactions.
- Mixed Model Games: Xterio is exploring mixed-model games that combine double-A quality with browser playability and skill-based rewards. This novel approach aims to attract both traditional gamers and web3 natives.
- AAA Gaming: The ultimate goal for Xterio is to create AAA web3 games that captivate millions of players. Overworld, their first AAA game in development, is expected to set new standards in the integration of on-chain assets and economies.
Final Thoughts
In conclusion, Jeremy Horn's analysis of the current state of web3 gaming provides valuable insights into its multifaceted evolution. Highlighting diverse categories from web3 native games to AAA aspirations, Horn emphasizes both the challenges and opportunities inherent in integrating blockchain technology into gaming. As the industry strives for mainstream adoption amidst technical complexities and platform restrictions, stakeholders like Xterio and others are pioneering solutions to enhance user accessibility and gaming experiences. With continued innovation and strategic partnerships, the future of web3 gaming appears promising, poised to redefine traditional gaming norms and engage a broader audience through novel gameplay mechanics and economic models.
