CoinGecko recently reported that 29 out of the world’s 40 largest game studios are investing in Web3 gaming, with 7 actively developing their own Web3 games. This trend is unsurprising, as research, development, talent, and investment have been pouring into the GameFi space for some time. Game7’s State of Web Gaming report from last year indicated that institutional investment in blockchain gaming has reached at least $15 billion since 2018. Now, we're beginning to see the fruits of these efforts.
There are numerous reasons to be optimistic about this burgeoning sector. Global gaming events are increasingly focusing on Web3, and innovations like portable Web3 identities are poised to enhance player experiences. Major announcements are being made weekly, signaling the dawn of a golden era for Web3 gaming. Here’s why.
Major Gaming Expositions
The Games Developers Conference (GDC) 2024, held in March in San Francisco, was the largest Web3 gaming event of the year thus far. With over 30,000 attendees, hundreds of speakers, sponsors, and investors, it was a prime opportunity for new games to showcase their potential and for existing games to gain further support.
Next on the agenda is the inaugural Decentraland event. While similar online events have received mixed reviews, there is confidence that Decentraland can successfully host this ambitious event, drawing a large crowd, featuring impressive panels, and streaming seamlessly. Significant prizes for the best new Web3 games will incentivize studios to showcase their latest projects.
Epic Game Launches & Announcements in Q1 2024
The beginning of this year has been marked by substantial announcements, launches, beta tests, and teasers. Notable titles include MetalCore, currently in its second beta test and recently announcing a major partnership with Pixelmon, which will involve a crossover of over one million players. Another significant title is Star Atlas, Solana’s flagship Web3 game, which has been building anticipation for years and reportedly accounts for around 8% of all SOL transactions.
Meanwhile, My Neighbor Alice, a game that has performed well over the past few years, is developing a GenAI game called Cloudborn, featuring an AI-NPC companion, AI-generated environments, and NFTs. Although still in development, it avoids the legal issues currently faced by Shrapnel, which, despite being in the pre-alpha stage, has announced internal issues slowing its progress.
Off The Grid, another noteworthy game, will be available on PC, Xbox, and PlayStation 5, marking a significant step as AAA Web3 titles make their way onto consoles. This move will help onboard traditional gamers into the Web3 space without forcing them to abandon their preferred platforms.
Ubisoft’s Return to Web3 Gaming with AI
Among the top 40 game studios, only 7 are developing Web3 games in-house, including Take-Two Interactive, Nexon, Bandai Namco, Konami Holdings, Krafton, Square Enix, and Ubisoft. Ubisoft, in particular, stands out. Nicolas Pouard, Vice President of the Ubisoft Strategic Innovation Lab, recently announced that Ubisoft’s Web3 games are nearing completion and should launch this year. This follows their Quartz blockchain gaming initiative with Ghost Recon: Breakpoint in 2021, which faced backlash over NFT integration, leading Ubisoft to focus on creating unique Web3 experiences.
Pouard revealed in an interview with VentureBeat that they are collaborating with a community of Web3-interested gamers to ensure success, acknowledging that the technology in 2021 wasn’t mature enough. By 2024, they aim to achieve significant success.
The integration of AI into Web3 gaming is revolutionizing game development, play, and experience. AI enhances the immersive qualities of games by creating realistic and responsive environments and intelligent NPCs that adapt to player actions in real time. This not only enriches gameplay but also ensures unique and engaging sessions.
Leading the Charge: Other Innovators
Ubisoft is not alone in this endeavor. Companies like Animoca Brands and Dapper Labs are also at the forefront of integrating AI and Web3 technologies into their games. Animoca Brands is enhancing its blockchain-based games with sophisticated game mechanics and player-driven economies. Yat Siu, Co-founder and Executive Chairman of Animoca Brands, emphasized the power of Web3 gaming in revolutionizing player interaction and ownership of digital assets. Adding AI to this mix elevates player engagement and opens new realms of creativity and personalization.
Dapper Labs, known for its NBA Top Shot platform, uses AI to provide personalized experiences and predictive analytics, ensuring players receive content most relevant to their preferences. These companies exemplify how AI and Web3 principles are transforming the gaming industry, offering unprecedented levels of interactivity, ownership, and personalization.
The Evolution of Web3 Gaming
The term “Web3 Gaming” may soon become obsolete as every game studio begins to incorporate Web3 in their development, making the distinction unnecessary. This sentiment is echoed by Skale’s CEO, Jack O’Holleran, who believes that the successful integration of blockchain into games will make it a standard feature. Web3 Gaming is evolving, and the future holds immense potential.
Joseph “Coop” Cooper, CEO and founder of Earn Alliance, shared his vision of a future where Web3 gaming is simply referred to as gaming. By 2026, he hopes to see great games built on blockchain that people love to play. Earn Alliance is focused on solving the problem of discoverability by creating a unified hub for Web3 games, making them easy, fun, and rewarding to find and play.
Final Thoughts on Web3’s Ascension
The future of gaming lies in the seamless integration of blockchain technology, making games more accessible and enjoyable for everyone. By creating tools for gamers, building fan bases, and ensuring easy utilization of these tools, the new era of gaming is within reach.
As we continue to see more players, development, and innovation, it is remarkable what time, investment, and talent can achieve. The example of Ubisoft shows how quickly the landscape can change. NFTs, once novel and intimidating, are now part of popular culture. Gamers are beginning to appreciate the benefits of Web3, heralding a new era for the greater good.
