Web3 Gaming: 7 Predictions for 2024

The resilience of Web3 gaming, bolstered by an emerging crypto bull market, is paving the way for what industry experts are forecasting as a defining year in 2024. The sector, which has weathered the volatility of crypto bear markets, is now positioned at the brink of a potential upswing, fueled by both market dynamics and technological advancements.

Crypto market excitement, coupled with the anticipated commercial release of several high-profile blockchain games, is set to usher an unprecedented number of gamers into the Web3 space. Dmitrii Morozov, CEO of GG MetaGame, notes, "The groundwork laid in 2022 and 2023 with alpha and beta stages is coming to fruition, with many titles set for commercial release in 2024, potentially bringing Web3 gaming to new heights."

Recent data from DappRadar highlights the momentum, showing about 1 million unique active wallets engaging with Web3 games daily in recent months. However, these numbers might just be a prelude to a much larger movement. Siu projects an influx of up to 100 million gamers by next year, a surge driven by the transition of numerous titles from their alpha and beta stages in 2022 and 2023 to full commercial launches in 2024.

"2024 is a growth year in terms of bringing people on to Web3," commented Yat Siu, co-founder of gaming and venture firm Animoca Brands, in a Cointelegraph interview.

The casual Web3 gaming space, especially mobile games, is poised to be at the forefront of this wave. Siu envisions "tens of millions, maybe even 100 million gamers" being introduced to blockchain gaming through these accessible platforms.

This article delves into 7 key predictions for the Web3 Gaming industry that might become realities in the next twelve months. Are you game? Read on!

1. Web2 game giants leap into Web3

The upcoming year is poised to witness more established Web2 gaming giants making their foray into Web3. Already, industry stalwarts like Nexon, Netmarble, Krafton, and Come2uS, along with Western powerhouses such as Square Enix, Konami, Ubisoft, CCP Games, Scopely, EA, and Zynga, have started exploring the Web3 space.

In this regard, Dmitrii comments: "The entrance of these giants is a clear indication of the untapped potential in Web3 gaming, signaling a paradigm shift in the industry."

2. Expanding presence on major app stores

Policies on major platforms like Apple App Store, Google Play Store, and Epic Games Store are evolving, making room for more Web3 games. In light of the EU Digital Markets Act, it's anticipated that mobile games on these platforms will begin incorporating stablecoins as a payment option, particularly benefiting European gamers. The U.S. market is also likely to see similar trends, owing to developments like Epic's victory over Google.

3. Growth of the gaming token market

The market cap for gaming tokens currently stands at approximately $18 billion. Given the recent growth rates in the gaming industry, it's plausible that this figure could soar to $40 billion or more in 2024. This growth would not only reflect the increasing monetary value but also signify the burgeoning interest and investment in Web3 gaming.

4. Web2 brands embracing Web3 mechanics

The trend of traditional, renowned brands integrating Web3 gamification is expected to continue. Post-2022, brands like Nike, Starbucks, Gucci, Adidas, Dior, Louis Vuitton, Balmain, and Prada have either launched or intensified their Web3 initiatives. "The coming year could easily see a doubling of such Forever Brand activations in the Web3 domain," predicts Morozov. This movement indicates a broader acceptance and integration of Web3 concepts beyond the gaming sector alone.

5. Play-to-Earn: about time for a natural evolution

Play-to-earn (P2E) gaming emerged as a dominant trend in 2022, captivating a broad spectrum of users with the allure of earning real-world value through in-game activities. However, this model faced scrutiny as both game developers and players overly focused on the 'earn' aspect, often at the expense of genuine gaming experiences.

A paradigm shift is now underway. A 2023 report by the Blockchain Game Alliance (BGA) highlighted that improving game quality should take precedence over simply implementing P2E mechanisms. This sentiment is echoed by Oasys Games director Daiki Moriyama, who, in an interview, acknowledged the significance of P2E but emphasized its overemphasis in the current landscape. Moriyama suggests that leveraging well-known IPs and significantly enhancing user experience could recalibrate the focus.

Can Azizoglu, CEO of Web3 startup incubator Coinoxs, concurs with this evolving perspective. “The Web3 gaming landscape is diversifying. Players are seeking varied gaming experiences, not just P2E,” he stated. While P2E remains a popular model, the growth of the sector is increasingly inclusive of a broader array of gaming experiences.

The shift in focus from P2E to more diverse gaming experiences marks a maturing of the Web3 gaming industry. Players are looking for games that prioritize engaging gameplay, indicating a move towards more sustainable and player-centric gaming models in the future.

6. NFTs: a shift from speculation to integral technology

The role of Non-Fungible Tokens (NFTs) in the gaming industry is undergoing a significant transformation. Moving beyond mere speculative assets, NFTs are being re-envisioned as foundational elements within business models. Uluç Yuca, co-founder of Curator Studios, sheds light on this shift, noting that NFTs are transitioning from being just a form of currency to becoming a core part of the gaming business model.

This evolution means that game studios are now looking beyond traditional in-game purchases and downloadable content. Instead, they are exploring player-driven economies that are facilitated by NFTs and royalties. Yuca elaborates, “NFTs offer players a financial stake in the game, akin to the founders and employees. This alignment with the game’s success transforms players into passionate advocates for games they love.”

This changing perspective on NFTs signals a deeper, more intrinsic integration of blockchain technology within the gaming sector. Instead of being an afterthought or a supplementary feature, NFTs are becoming central to the gaming experience, fostering a community of players who are financially and emotionally invested in the game's success. This trend is a step towards creating more robust, player-centric economies within the gaming world, promising a future where players are key stakeholders in the games they engage with.

7. Games before prices: sustained growth beyond the next bull run

The fluctuating nature of the crypto market often raises questions about the long-term viability of Web3 gaming. According to Yuca, there's a possibility that interest in Web3 gaming might wane during a bull run as investors pivot their focus to other market areas. However, he believes that the core technology and potential of Web3 gaming could continue to draw users and developers, leading to sustained interest over the long term.

"The integration of blockchain technology into traditional gaming could also fuel continuous interest in Web3 gaming, even during a bull run," Yuca adds. "Ultimately, the success of Web3 gaming will hinge on its ability to offer unique and engaging experiences to users, irrespective of the market conditions."

Echoing this sentiment, Morozov from GG MetaGame, opines that the allure of Web3 gaming is unlikely to diminish with market fluctuations. "We're witnessing a growing influx of players from traditional gaming backgrounds. With only a fraction of the global gaming population currently engaged in Web3 gaming, there's immense potential for growth," he asserts.

Michael Powell, product marketing lead at Immutable, concurs with this optimistic outlook. "Gaming is one of the sectors where blockchain technology has the most immediate applications and utility," he observes. "With active investments pouring into Web3 gaming, interest from major gaming companies, and improvements in developer tools, we're on the cusp of a major expansion in diverse game types across different ecosystems."

Powell also highlights the current upward trend in gaming tokens and strategic partnerships as indicators that the sector is primed for significant growth in the near future. "The momentum we're seeing now is a strong signal of the sector's readiness for major expansion," he concludes.

In a nutshell

In summary, while market conditions will continue to influence the Web3 gaming landscape, the consensus among industry leaders is clear: the future of Web3 gaming rests on its ability to deliver compelling and unique gaming experiences, transcending market trends and investor priorities. This focus on the gaming experience itself, rather than just financial aspects, could be the key to unlocking sustained growth and enduring success in the Web3 gaming domain.