Web3 Gaming: The Next Wave
The remarkable ascent and descent of Axie Infinity has been telling. Considered to be a pioneer since it popularised the idea of play-to-earn (P2E), the game formerly required a four-figure investment because bottom-tier Axies cost roughly $350 each at its height of popularity. But the price of Axies and the in-game money Smooth Love Potion plummeted as a result of weak in-game economics, inflation that threatened the real world’s economy, and a $600 million hack. The same monsters that sold for hundreds of dollars the previous year now go for less than $10.
Another example of a web3 game reaching the same fate is Solchicks. Early in January, the biggest P2P game on Solana, Solchicks, reached its peak with a price of $0.10 and a trading volume of more than 3 million. It is currently trading at $.012 with a volume of less than 100k.
The “crypto winter” we are currently experiencing has exposed several fundamental concerns about the long-term viability of Web3 gaming that were concealed by this hype cycle. Play to earn is now regarded mainly as being unsustainable. When the numbers stopped increasing, rudimentary blockchain-first games ceased to be entertaining.
However, Axie Infinity does not represent the future of gaming that many Web3 developers see. Both small and large video game companies are creating games with the intention of starting over with Web3 gaming.
It’s safe to say that a lot of people are still betting long on Web3 technology and gaming. In 2022, investment in the blockchain gaming industry has already surpassed $5 billion, up from $4.2 billion in 2021.
Getting the basics right: fun
Components of investment and economic ownership will surely be present in any successful blockchain gaming business. But encouraging widespread adoption is the most crucial component.
The blockchain gaming venture that attracts the majority of gamers, or “normies,” will also become the world’s largest Web3 onboarded. A Web3 game strategy that puts the blockchain before enjoyment by prioritizing mass-market dynamics is unsustainable and unscalable. Any blockchain gaming model should, then, start with the fundamental element that made gaming so wonderful in the first place: fun.
From this vantage point, we can use blockchain to improve games, resulting in a complex offer that appeals to players of all stripes, crypto natives, and everyone in between, and offers options. That is Web3 gaming’s coveted goal.
Games as a platform
It is impossible to create a single game that attracts and retains billions of players, on or off the blockchain. In light of this, the expansion of Web3 gaming as a platform makes sense.
The development of self-sustaining ecosystems that benefit both publishers and players can be facilitated by traders, speculators, and guilds. The studio has to put forth less effort to keep users interested.
Gamers can continue to invest and discover fresh experiences made by other players. Second, the wide distribution of a major game would allow independent, innovative developers to make money without stressing over user acquisition. Thirdly, it makes it easier to increase revenue from in-game purchases and subscriptions.
The community factor
Play-to-earn models are popular since they pay more. The notion that money is the only driving force, however, can be incorrect. Traditional occupations do not now provide for the sense of community, dignity, or possibilities that come with digital-first types of work, such as those made possible by P2E models.
To think that play-to-earn will correct every issue in the labor market today is unrealistic. But it’s fair to claim that jobs that are primarily performed digitally. With the help of guilds like IndiGG, gamers may interact with people who share their interests and potential sources of revenue.
Although the game itself is free to play, people who participate through the guild can win money. For anyone into web3 gaming, it might not seem like much, but if you are from a tiny town with few immediate employment possibilities, it could be a game-changer.
Closing thoughts:
Games must, above all, be enjoyable. Because they’ve just been available for a little over a year and it takes years to develop a high-quality game, Web3 games now don’t have as nice of gameplay as the most popular Web2 games. Web3 games may overtake Web2 games in the next five years as more and more competent game developers switch to it, both in terms of quality and popularity.
As web3 games move beyond the P2E business model and focus on delivering high-quality gaming experiences with cutting-edge gameplay, visuals, and social interaction, we are now entering a new phase.
