- 1 Virtual gaming activity platforms saw a spike during the pandemic.
- 2 The study mentions NFTs as a driving factor for the market’s growth.
New research foresees the blockchain gaming market to generate $614 Billion by 2030. Unlike traditional games, they offer real-world earnings through elements like cryptocurrencies and non-fungible tokens (NFTs). The sector was valued at $128 Billion last year, which may grow to $154 Billion by the end of this year.
High Hopes For Web3 Gaming
According to Fortune Business Insights, a market research company, COVID-19 had a profound impact on wide-ranging markets, both positive and negative. Virtual gaming activity platforms saw a spike in activity, including blockchain gaming. Financial needs became the major driver for increased activity in play-to-earn (P2E) or crypto games. Axie Infinity (AXS) was among the popular P2E games in regions like the Philippines.
On a physical account, global production and manufacturing output declined by 9 percent year-on-year during the first quarter of 2020 according to the intergovernmental organization United Nations. Additionally, the employment sector saw a dramatic decline in physical work, giving a push in awareness for technologies like the metaverse.
Gaming emerged as among the top activities during the COVID-19 outbreak. Data aggregator Statista reports digital spending on in-game content rose by 12 percent while paid downloads increased by 21 percent. On the contrary, a decline in physical video game sales met gravity during this time.
Another study associated with the traditional video games market underscores that it will generate nearly $700 Billion. However, it did not include Web3 companies involved in gaming. Major organizations in this research include Nintendo, Microsoft, Nvidia, and more. Recently, Microsoft acquired Call of Duty maker Activision Blizzard in a whopping $69 Billion deal, creating waves across the industry.
NFTs are mentioned in the Fortune Business Insights report as the driving factor for blockchain gaming. These digital assets allow true ownership of an asset. Two individuals cannot possess the same skin in the game. Other players must purchase it from the other or a marketplace if not in possession of any user.
However, the assets hold a negative reception with traditional gamers. NFT integrations in games have inspired a backlash in the past. They believe it will make games expensive, and not fun. Entertainment is the backbone of gaming and adding ‘already existing’ financial elements—premium in-game items like exclusive skins—may kill the fun elements.
Regulatory scrutiny on the crypto sector could further add barriers to the market according to the analysis. It reads, “The regulatory framework adjoining cryptocurrencies and NFTs might disappoint gamers and developers from discovering blockchain games to their full potential.” The recent Securities and Exchange Commission’s (SEC) crackdown on the sector affected several crypto assets like The Sandbox (SAND), Decentraland (MANA), Axie Infinity, and more, negatively.
The future may appear bright for blockchain gaming as per this analysis. Other data highlights stagnancy in the sector. Data aggregator CoinGecko reports that 75 percent of the Web3 games are already dead. 2,127 games have failed in six years including 2023.
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.