Web3 Gaming Had a Big Year in 2022. Here Are the Top Funded Projects.
Written by Ditto PR’s Conna Chen, Associate Account Executive, and Elijah Pollack, Content & Strategy Associate.
Web3 gaming is a fast-growing industry that promotes individual ownership, decentralization and community building in the world of gaming. In the past, Web3 gaming has faced problems among developers whose main focus is to maximize profitability of Web3 games, instead of focusing on content and community building, which are keys to succeeding in this space.
As is the case with many aspects of blockchain, there are some Web3 game creators getting it right. As a reward, these projects are seeing increased adoption and investment activity that sets them apart from the rest.
Here are some of the gaming companies that have raised the most money to invest in Web3 gaming:
- Mysten Labs, a Web3 infrastructure company, raised $300 million in Series B funding to scale its blockchain, “Sui.” Investors believe that Sui will be a low-cost creator-owned network, geared specifically for games. NCSoft, a global gaming company and an investor, plans to work with the firm on potential Web3-powered games.
- LootMogul received $200 million from Global Emerging Markets to develop blockchain gaming for sports organizations and athletes to deliver an immersive fan experience. The sports gaming market is huge — users spend hundreds of dollars to buy and customize players in games such as NBA 2K. Players will be able to buy sports metaverse properties or merchandise to engage with their favorite team or athletes. This is an opportunity to expand the Web3 community by bringing Web2 users into the metaverse, as well as for brands and athletes to promote and monetize by engaging with fans.
- Immutable closed a $200 million Series C round last March to build games that will have true in-game economies. The funding will be used to double its team for global expansion and to scale its gaming studio. Immutable believes its products will attract up to a billion Web2 players by creating a breakout Web3 game.
- Revolving Games, a Web3 gaming studio, completed a $25 million Seed round in September. The funding will be used to develop decentralized games in-house and alongside global franchise partners. Nearly half of the funding has been used to develop publishing tools that enable Web3 games to launch faster and more efficiently. The company already has multiple partnerships lined up, including with blockchain gaming platform Gala Games and NBCUniversal. It is developing a massively multiplayer online game (MMOG or more commonly MMO) based on Battlestar Galactica.
- Playstudios, a global gaming studio, earned $10 million in August to launch a new blockchain division. The funding will be used to grow its strategic innovation through blockchain loyalty and reward models. There is potential to launch and evolve current titles, such as Tetris and myVegas, into the metaverse and tokenize loyalty programs for players.
So, what are investors looking for in this space?
Investors believe that Web3 services will become a leading feature in the future digital asset industry and are looking for developers that build blockchain-based games. Gaming is a massive, profitable industry, and there is serious money to be made for investors if they know to look in the right places.
2022’s big fundraising winners point to some possible trends to watch in 2023.
In 2023, millions of people will enter the metaverse as the quality and quantity of blockchain games increase. Those who were previously skeptical will feel more pressure and incentive to explore Web3 gaming.
We also see mid-market gaming studios breaking into the Web3 world and being the fastest to market.
The gaming industry is worth hundreds of billions, and is only projected to continue its substantial growth in the coming years. Technology continues to improve, and communities have increasingly come together to enjoy a massive variety of games. Investors would be hard pressed to find an entertainment industry that has more potential profitability than Web3 gaming. As developers continue to create more unique and special projects, Web3 gaming will grow from the niche industry it currently is into a mainstream part of gaming culture.
