Web3 Gaming Is Entering The Next Stage Of Its Maturity

Gaming

has always been one of the most promising segments for Web3 technologies, offering benefits such as ownership and interoperability of assets, transparent gameplay, and token rewards. However, the road to acceptance and adoption is rarely smooth. Following the 2021 crypto hype, which sparked interest in Web3 games and particularly play-to-earn, there was a backlash from corners of the established gaming community who complained of issues such as low-quality gameplay and NFT shills ruining the experience.

In light of that, the industry has evidently been listening. According to a comprehensive report into the state of the Web3 gaming market published by gaming DAO Game7 in December 2023, the last year or two have shown a marked shift in the way the industry is approaching Web3 game development. For instance, in 2021, there were 29 times more games launched than networks built to support them. By 2023, this ratio had dropped to 2.8 times. This trend indicates a strong focus on infrastructure rather than attempts to ‘replace’ existing Web2 games with Web3 equivalents.

This marks an important shift in strategy that could see Web3 carve out a more stable and successful niche within the established global mega-industry that gaming has become. The strength of Web3 developers lies in delivering the technological solutions that can enable and showcase the core benefits of Web3 games and not necessarily in trying to build a title that can directly compete with a Web2 equivalent in sales.

A Visible Shift Is Underway

The evidence of this shift isn’t something that will take several years to play out. It’s already visible in the types of projects and initiatives that are emerging — or not emerging, in the case of new Web3 game launches. The Game7 report showed that launches were down 65% between 2022 and 2023, while the activity is happening at the infrastructural level.

For instance, Cronos is creating a compelling offer for game developers with the integration of the two most powerful and popular gaming engines, Unity and Unreal, into its high-speed blockchain. Game developers can program their games using the same languages and tools they’re used to handling, such as C++ and Blueprint, and integrate Cronos using a few lines of code. The platform also benefits from integrations with Crypto.com, which offers access to payment services and an NFT platform, as well as the company’s vast user base via the OAuth login. While Cronos was built with use cases such as DeFi and GameFi in mind, the project’s strategy is clearly focused on delivering tools over applications, leaving the creative development to gaming natives.

Oasys

is adopting a similar strategy, albeit with a different infrastructural offering. However, with backing from names like the global video game publisher Ubisoft, it’s positioning itself as a rival to projects like Web3 gaming development platform Immutable. Oasys is building a dual-layered blockchain gaming platform for game developers that can be described as the equivalent of a game console like Xbox. But unlike a console, a blockchain doesn’t require the gamer to buy a new upgrade every few years, and it’s resistant to downtime or breakage.

The Oasys base layer, called The Hub, is a public EVM-compatible Layer 1. The Layer 2, called The Verse, is the ultra-fast Layer 2, supporting Web3 game applications including Ubisoft’s upcoming fantasy RPG Champions Tactics: Grimoria Chronicles.

Bringing Web3 Features To Web2 Gaming

Some areas of development in Web3 gaming could perhaps be better described as feature-based than infrastructural, but still reflect a broader trend of offering tools and services.

Azarus — recently acquired by Web3 gaming leader Animoca Brands — is a streaming platform based on blockchain. Ultimately, it aims to allow players to earn rewards from their streaming broadcasts but has also teamed up with Twitch to enable an additional layer of engagement for online game viewers. Viewers can play interactive games provided by brands like Logitech and Red Bull via a simple web browser extension and earn rewards for doing so. The acquisition seems like a natural fit for Aminoca in its pursuit for a a decentralized gaming experience.