Taking Web3 Gaming to the Mainstream: What are the Challenges?

In 2021, blockchain gaming activity increased by over 2000%, with a total of $4 billion investment coming into the industry. While 2021 was the golden year for blockchain gaming, the sector will continue to grow throughout this decade, projected to reach $10 billion in investments by the end of 2022.

With such rapid progression, blockchain gaming is not just attracting new users, but also influencing traditional gamers to transition to the Web3 and blockchain space — thanks not only to the FOMO but to the unique opportunities not available in the traditional titles.

In traditional gaming, microtransactions allow companies to receive billions, but gamers receive zero monetary benefits in return for their time investments. The P2E model changes this scenario by enabling gamers to collect, trade, and sell in-game assets, and creating more engagement within the gaming communities. However, the reaping benefits of blockchain gaming are often overshadowed by the complex transition challenges which we’ll explore below.

NFT and Web3 Integration: First Cases

Traditional gaming companies are already making moves toward integrating the blockchain P2E model. We have already seen major gaming studios like Ubisoft, Square-Enix, Nintendo, and Atari introduce projects like in-game NFTs and dedicated metaverse spaces for their gamers.

Last year, Ubisoft became the first major to enter the NFT and blockchain space. The company launched its range of NFTs called Ubisoft Digits, and a trading platform ‘Quartz’ where gamers can sell their in-game assets as NFTs.

While some gamers embraced the idea of P2E and true ownership of in-game assets, the majority of the traditional gamers backlashed against the idea. The announcement video on Ubisoft's Youtube Channel received 95% dislikes, forcing the company to take it down. So, what was the case?

Primarily, Ubisoft used an ineffective approach to introducing the new concept. Primarily, the company focused its marketing efforts on promoting Quartz as an energy-efficient platform for NFT transactions powered by the Tezos blockchain. While this might be exciting news for users familiar with blockchain, it is as good as gibberish for traditional gamers.

Sadly, if game creators don’t spend enough time educating traditional gamers on the Web3 and NFT space, we’ll have few mechanisms to build trust among users, and no information pipeline for those unfamiliar with new concepts.

Tackling Complexity, Payments, and Trust

Functional complexity is one of the main reasons why blockchain games haven’t yet been able to match the status quo of mainstream gaming. The thing is, the majority of gamers just want to chill and enjoy the virtual experience. Whether it’s a storyline or the competitive bond of online gaming, most are in it merely for the experience. The broad technical jargon of NFT, blockchain, and Web3 is something they don’t want a deep dive into.

While the functions of blockchain gaming are massively different from traditional games, there’s a massive lack of education in this sector and virtually no information pipeline for new gamers.

This applies even to functional aspects such as payments. Traditional in-game microtransactions are as easy as saving your credit card details once and then making all payments in a single click. However, transactions in blockchain games can be quite challenging for new users, as in most cases, you have to have a crypto wallet and use on- and off-ramps. So, without proper instructions, most users won’t even know how to buy or sell their in-game assets.

And, of course, there’s the lingering issue of trust. The problem is that we don’t trust what we don’t understand. Add to that the fair share of scams the NFT and crypto space experiences, the lack of a credible infrastructure — and the fact it’s challenging to build trust among new users won’t come as a surprise.

Lowering Entry Barriers to GameFi

To lower the entry barriers to blockchain gaming, developers and project leads need to focus on simplifying the onboarding journey. First, focus on the fun factor of blockchain gaming, not the technical aspects; let users know the benefits of playing these types of games — from monetary to experiential — how to play them. While doing so, one should keep in mind that, ideally, downloading and installing Web3 titles should be as easy as it is with any traditional mainstream game.

The next step is integrating easy-to-use payment solutions. In-game transactions should be fast and easy, requiring as little input from the users as possible, while the process should be thoroughly explained on the website and in the guidelines and include visual guidance.

Lastly, developers must emphasize the game’s functionality, spend more time developing the storyline and plot, provide visually engaging graphics, and release regular updates to provide additional value over time. Free-to-play versions will be a nice bonus, so users can try the game before committing to buying.

The bottom line? To succeed and capture the attention of traditional gamers, Web3 developers have to put the game first, engage the users, and educate them on the benefits, while making the transition process as smooth as possible. As more Web3 titles start to provide a quality experience by removing the existing barriers, traditional gamers will inevitably flock to the space.