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- 1 APAC region caters to 40 percent of Web3 game development.
- 2 Free-to-play (F2P) games are dominating the sector.
A new Web3 gaming report says the United States is currently dominating the market while the Asia-Pacific (APAC) region hosts a majority of developers in the sector. Game7, a Web3 game community, in their research, highlights that mainstream gaming organizations including Unity and Unreal Engine are also involved in such developments.
The Market is Moving But Slowly
The study dubbed State of Web3 Gaming indicates that the number of gaming developments declined since 2021. A total of 223 Web3 games were launched while 43 were halted. APAC region caters to 40 percent of development followed by North America, Europe, the Middle East, and Africa (EMEA).
Although the US remains the biggest market, South Korea-based development teams have grown significantly, accounting for 27 percent among different nationalities in 2023. Moreover, networks targeting Web3 gaming have soared since 2020 with numbers reaching the highest this year.
Most of the games are compatible with only a single platform. However, games on different platforms like mobile, PC, and browser are evenly distributed. By 2019, 53 percent of games were running on PC. The scenario has changed and mobile has become the dominant platform in 2023, PC’s share has come down to 23 percent now.
The scarcity of AAA and AA games indicates that Web3 gaming is still struggling to enter the mainstream. The sector is brimming with indie, mid-sized, and primitive games. Role-playing games (RPG) are popular among the Web3 community as well. About 22 percent of games in the sector resonate with the genre.
Free-to-play (F2P) games are dominating the Web3 sector, yet, nearly 30 percent of games still ask the users to hold NFTs or a native cryptocurrency to advance. Several users, especially newbies, have a hard time getting familiar with the crypto element in games, the prerequisite prevents them from playing popular play-to-earn games like Axie Infinity.
Immutable remains the favorite Layer 2 solution to deploy games. Solana is currently the biggest non-EVM ecosystem for blockchain games. Game migrations have risen dramatically in the last five years. While only one migrated in 2019, this year saw 65 transitions. Nearly three-fourths of them chose EVM-based chains as their new network.
The years 2021 and 2022 were the most crucial for the sector given the investment boom. The period saw a total of 861 funding rounds bringing in $17.5 Billion in funding. The growth has declined this year with only 135 funding rounds stacking up $1.5 Billion.
The study digs deeper indicating that Q4 2021 pulled the largest amount in a quarter. November 2021 saw the crypto and NFT market soaring to new heights. Non-fungible token (NFT) market gained 21,000 percent during the year.
Anurag is working as a fundamental writer for The Coin Republic since 2021. He likes to exercise his curious muscles and research deep into a topic. Though he covers various aspects of the crypto industry, he is quite passionate about the Web3, NFTs, Gaming, and Metaverse, and envisions them as the future of the (digital) economy. A reader & writer at heart, he calls himself an “average guitar player” and a fun footballer.
