Web3's Impact on the Shifting Landscape of Video Gaming

Video games have been a popular pastime from as far back as the late 70s. Since then, they have undergone a remarkable transformation, going from dimly lit arcades to the captivating and immersive virtual realms of today. This evolution is a testament to the creativity and innovation that has continuously pushed the boundaries of storytelling and technology.

However, the evolution of video games hasn’t just been graphical. The player experience has also changed as technological advancements have allowed game developers to attain new standards of interactivity.

Today, the integration of blockchain technology is set to take things to a whole new level, making it the perfect moment to analyze the evolution of gaming – from the Commodore 64 to Game 3.0 and the new vision it introduces.

The beginning of a billion-dollar industry

In the beginning, the gaming landscape was populated by standalone games. These were initially designed for arcades, and eventually, consoles came into the picture. This period marked the rise in popularity of household names like Tetris, Snake, Pacman, and many more.

During this era, apart from arcades, experiences were largely single-player. These games were also very basic, with limited interactivity, relatively simple mechanics, graphics, and gameplay loops. Regardless, the primary goal was to provide the player with a fun interactive experience.

The introduction and rise of multiplayer games

The invention of the internet opened a whole new avenue for human interaction, and gaming was quick to take advantage of that. By the mid 2000s, the internet had been commercialized and was widely accessible around the world.

Developers realized they could leverage this to enable players from different locations to interact, collaborate, and compete with each other in the same virtual environment. And as internet costs got cheaper, more people started playing multiplayer titles.

So, while single-player games remained a significant part of the player experience, this era is also defined by the explosion of multiplayer games. Competitive multiplayer games like Call of Duty (CoD) and Halo made their debuts and have gone on to become some of the biggest titles on the planet. To this date, they attract players on a global scale.

At the same time, game mechanics improved significantly and became more complex; as did the graphics. This allowed games to be more engaging, more entertaining, and offer significantly more options and opportunities.

Social interaction has been a crucial part of the player experience ever since. Today, the most-played video games are so because they are multiplayer, showing that players enjoy competing and collaborating just as much as they do going on solo adventures.

Blockchain technology and the play-to-earn era

Around ten years after the creation of the first public blockchain, significant improvements in the technology revealed its potential to enhance the player experience. This realization would eventually lead to the development of a new gaming frontier that aimed to empower video game players.

But how do you do that?

In previous eras, players were rewarded for their time in-game in a variety of ways. The satisfaction of finishing a challenge, level, or story in a single-player experience is one example. The fulfillment of making friends, winning in a multiplayer lobby, and completing challenges together are some more.

GameFi proposed another kind of reward, one that is financial in nature. This ultimately led to the play-to-earn (P2E) model. The P2E model provided players with financial rewards in the form of crypto tokens for playing a game. These tokens came in a variety of different forms, including non-fungible tokens (NFTs), cryptocurrencies, and more.

In-game assets and collectibles were also converted into NFTs that could be stored in players' wallets. So, when a gamer collects a rare weapon or item, they own a part of the game, which they can sell to other players for funds.

GameFi pioneers, like Crypto Kitties and Axie Infinity, allowed a player to do just that. In fact, it did it so well that it created another big problem – over-monetization.

Less fun, more money

GameFi focused too much on on-chain financial mechanics. The games were barely games. For example, there was no actual gameplay in many of the games. So, players didn’t spend their in-game time playing for enjoyment – they just did things that would earn them NFTs and tokens.

The storytelling, mechanics, and social experiences that were central to the player experience in previous eras took a back seat.  What were initially marketed as “games” were essentially just a bunch of financial transactions on the blockchain.

With little in the way of joy and fun, players were primarily motivated by potential gains. If these gains dried up, the players would leave. This is exactly what led to the demise of many GameFi pioneers.

Does Web3 still have a place in gaming?

GameFi’s failure may suggest that Web3 technologies have no place in gaming. However, “Game 3.0,” a term coined by Army of Fortune, a Web3 mobile games project, has introduced a new dynamic and thought process that’s quickly catching on.

What is Game 3.0?

Game 3.0 takes some of the best parts of GameFi, that is, using blockchain technology to elevate the gaming experience through things such as true ownership and stakeholder power. It then connects it with the traditional values that made video games such a big attraction in the first place, and in doing so, solves some of the biggest issues with web2 gaming.

For example, blockchain technology will allow players to own in-game collectibles as NFTs. They can hold onto these NFTs or sell them for monetary gain. And because players truly own their hard-earned in-game assets, they should be able to keep and utilize them long after a game shuts down.

Blockchain-enabled decentralized governance models will also allow players to own and control their favorite video games to a level previously unseen. This means video games that are no longer solely subject to the interests of the developer/publisher. Player input will hold much more weight than it currently does in web2 gaming.

Web3 also provides an excellent platform for creating vast interoperable game ecosystems where players have complete freedom across multiple game worlds. Here, players can utilize the rewards earned in one game across other games in the ecosystem.

But perhaps most important is that gaming remains gaming. The storytelling, game mechanics, and interactions that define gaming are not abandoned. In fact, the Game 3.0 concept emphasizes creating a beautiful gaming experience first and then adding in some of the things GameFi is known for.

Thus, with Game 3.0, players may not even realize they are interacting with Web3 technology. The experience is designed to be as enriching as some of the best games on the market, albeit with a few blockchain-powered enhancements.

The future of gaming is “micro-monetization”, not microtransactions

Gaming has come a long way, from isolated single-player experiences to the sprawling single-player and multiplayer worlds of today. But that doesn’t mean it can’t get better.

Blockchain technology can still be used to enhance the playing experience and solve some of current issues that plague the current gaming market. Initial efforts failed because they prioritized Web3 financial mechanics over everything else. So, the future needs a different approach, which is where Game 3.0 comes in.

Game 3.0 promises the same levels of immersion and enjoyment that have long defined gaming, only this time, players who engage in these experiences are empowered through blockchain technology.