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- 1 About 2,127 games have failed in the past six years including 2023.
- 2 Blockchain gaming is likely to rise from $4.6 Billion in 2022 to $65.7 Billion by 2027.
Many reports suggest that Web3 gaming is growing as the sector is attracting a lot of investments. If that’s the case, many of such investments have gone down the drain. A new report indicates that 75 percent of Web3 games are dead already. The year 2022 turned out to be the worst of all in the last six years.
It’s a Warzone For Traditional Gamers and Web3
According to data aggregator CoinGecko, 2,127 games have failed in the past six years including 2023. The failure rate reached 107 percent last year while 2021 registered the lowest percentage of failures. It can be attributed to the crypto and non-fungible token (NFT) market boom that year.
Traditional gamers have generally maintained a safe distance from the blockchain. The community has opposed the technology’s integration as it may take away its essence. More than entertaining value, it could give rise to financial value. Additionally, it is also considered damaging to the environment given the energy consumed by data centers powering the technology.
As of now, there are over 3 Billion active gamers globally. Only 800K of them are active in Web3. One of the reasons for this can be attributed to the fact that the next evolution of the internet (at least that’s what people are calling Web3), has not entered the mainstream.
Blockchain gaming is likely to rise from $4.6 Billion in 2022 to $65.7 Billion by 2027. The sector does not cater for any AAA games for now, however, leading companies like Square Enix and Epic Games are involved in the development of titles associated with Web3 integration.
NFT is among the crucial elements required for blockchain games. Ubisoft and SEGA, two of the leading gaming organizations, tried infusing NFTs into their games. Reaction from their respective communities caused them to take their step back. Environmental concerns were at the center of the backlash.
Many may find the future of blockchain gaming promising. However, in actuality, it’s a long path to travel. Businesses may embrace the integration of the technology as it could be beneficial for them in the long run. Nonetheless, the market is dominated by traditional gamers and they may adhere to their values. In a way, it’s a war between ‘prices and values.’
Sure blockchain gaming may see record breaking investments in the years to come, but that will take more than that. Specifically, some value that aligns with traditional gaming. It is all about community. Captivate it and they can make a market, exasperate them and it can break it just as simply.
The global gaming market is presumed to make nearly $250 Billion this year, 50 times more than what blockchain games generated last year. Upcoming technologies and advancements in existing technologies may help Web3 games up their game. Education and accessibility to these games will be important given that many find them a hard nut to crack.
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.
