Web3 gaming has somewhat of a mixed reputation. It was once hailed as the next big thing in the Web3 world, only to fall short as developers turned out games that were little more than mining skins that were not fun to play. Rug pulls and other scams have also tainted the image of the industry.
However, many still believe in the future of Web3 gaming- and this week, at the World Blockchain Summit, several industry experts were invited to discuss whether where the industry should be headed.
These included Oleg Boytsov, founder and CEO of Artyfact, Carney Mak, head of investment-Fintech at FXHB Asset Management, and Irene Umar, Co-founder and CEO of W3GG.
When queried on what Web3 gaming offers, panellists unanimously expressed the hope that Web3 games could offer consumers a larger stake in the games that they play.
Irene argued that in the current paradigm, gaming distributors get a huge cut from games, but gamers get nothing despite spending plenty of time playing those games.
What the Web3 world and blockchain technology offers gamers is the opportunity to participate in a more distributive ecosystem, where they control the data and game items that they create, and get a stake in the system.
In addition, this participation would also onboard gamers into the Web3 world.
“The game industry has always been about infusing gaming into life without feeling guilty, and by playing Web3 games, people can start to learn about creating wallets, holding tokens, using tokens, and more. Games and entertainment are at the forefront of mass adoption precisely because people love to play games and we consume these media on a daily basis.”
The Challenges of Building Web3 Games
That being said, the panellists also noted that the industry faces different problems than the Web2 gaming industry.
“Investing in Web3 games is difficult. While in the Web2 space, the challenge is to find a game publisher willing to publish your game, in the Web3 space, the challenge really is the lack of regulation. Without it, investors aren’t sure of their investments, and therefore can find investing in a Web3 game risky or unpalatable.”
-Carney Mak, Head of Investment-Fintech, FXHB Asset Management
However, he noted that the Web3 gaming space also offers a very different type of opportunity. NFT innovation has brought about new opportunities by opening up new fields for exploration for consumers.
Irene echoed these sentiments, and suggested that moving forward, Web3 games would be created with more fun in mind, and with newer business models on how to monetise games.
“The market itself is a unique opportunity. Gamefi founders need to know what games are all about, and each game is a universe unto itself. Think about games like pokemon, where players are able to immerse themselves into a whole new world.
And think about how free to play games were supposed to die out, because of a lack of monetisation, but look at how many studios have created successful free to play games like Candy Crush. We all have these on our phones.
The Web3 gaming scene has gone through many trials, but we have survived thus far- and we will continue to do so.”