2024 Market Insights: Web3 Gaming

Are you a marketer from a Web3 gaming company?

Are you looking for current market insights into the Web3 gaming industry?

Are you a web enthusiast curious to know about Web3 gaming market?

Do you own a Web3 gaming company?

You have come to the right place, where I discuss Web3 gaming market insights for the year 2024 so far.

But before we discuss the market insights of Web3 gaming, I want to tell you a short story.

Let’s get the ball rolling. Read on.

Chang & Tim - Short Story

This story happens in the 90’s.

There are two people in the story. They are Chang & Tim.

Once, Chang went to meet his friend Tim at his home. Tim was working with a computer at that time. Chang didn’t want to disturb him and just sat near him.

Tim was staring at his computer. It’s already been 45 minutes since Chang came. Chang lost his patience and asked Tim what he was doing.

Tim replied that there is this thing called the Internet, and he is trying to send a message to a friend through it. Chang found Tim's difficulty and suggested Tim use a phone to tell his message.

Chang felt that the internet was useless.

Now, watching the current transformation of the Internet in 2020, Chang feels he made a wrong guess in the 90’s about the Internet.

Today, anyone can pay electricity bills through the Internet. Anyone can broadcast a message to millions and millions of people with the click of a button. Anyone can video conference anywhere around the world? The possibilities of internet are growing & endless.

Just like the Internet of 90’s, Web3 gaming is another major Innovation of 21st century. It’s better to bet safely on the future of Web3 gaming and not react just like Chang did to Internet.

The ownership of in-game assets and moving them between games are terrific ideas.

The Web3 gaming market is mixed with both an optimistic and not-so-optimistic outlook.

Let’s look into both the outlook in detail.

First, the Optimistic Outlook.

Optimistic Outlook

The Web3 gaming market size is projected to be worth US$ 23,926.0 Million in 2023. The market is likely to surpass US$ 133,228.2 Million by 2033 at a CAGR of 18.7% during the forecast period.

Source: Future Market Insights

The following top 3 important factors for the year 2024 contribute to the optimistic outlook.

• Ownership of digital assets
• Democratic Governance
• Monetization Possibilities

Let’s look into each in detail.

Ownership of digital assets

Thanks to the use of blockchain technology and non-fungible tokens (NFTs) in Web3 gaming.

Web3 gaming allows players to truly own in-game assets such as skins, characters, and items.

The ownership is verifiable and secure. This increases the perceived value of in-game assets.

Players can sell, trade, or hold their in-game assets. This led to a wide reception of the Web3 gaming ecosystem.

Democratic Governance

Web3 games are built on decentralized platforms. This means that players can influence the game's governance.

This participatory approach led to more democratic and transparent decision-making processes during Web3 game development.

This democratic governance leads to increased player loyalty and engagement. The gamers feel more connected and responsible for the game's direction.

Monetization Possibilities

Web3 gaming introduces novel monetization strategies that benefit both developers and players.

For example, Web3 games feature player-driven economies in which players earn real-world value through gameplay, such as "play-to-earn" models.

This not only adds a layer of incentive to play but also opens gaming up as a potential source of income for many gamers.

This attracts a broader audience and fosters a vibrant, economically diverse community.

Not-so-Optimistic Outlook

Given the Optimistic market Outlook, on the contrary, a survey by Coda Labs found the facts below.

• Only 6% of mainstream gamers have ever used a Blockchain wallet or bought an NFT
• Only 12% of gamers have tried playing a Web3 game
• Only 15% of respondents who hadn’t played one were interested in doing so

Below are the top 3 important factors of the year 2024 that contribute to the not-so-optimistic outlook of the Web3 gaming market.

• Wallet Complexity
• Regulatory Issues
• Fragmented Application Stores

Wallet Complexity

In order to play Web3 games, one must connect the crypto wallet to the Web3 game.

Newcomers to Web3 games face difficulty connecting the wallets.

In addition, the inherent complexity of Web3 gaming makes it difficult to gain recognition and become a mainstream success.

There are below reasons why connecting a wallet is complex.

• Downloading and installing a Web3 wallet
• Remembering a 12-word seed phrase
• Guessing a strategy to store seed phrases safely
• Connecting the wallet with the game, assuming no connection issues

One way to mitigate this issue is to develop a Web3 game with an in-built wallet, which can speed up the gaming experience.

Regulatory Issues

Geographical restriction: Certain geographies have strict regulations against using Web3 applications. This means Web3 gaming is prohibited in certain countries, slowing down the adoption.

Token Taxation: Web3 games use Cryptocurrency or NFT tokens to gain ownership. Most countries classify these tokens as financial instruments, subject to trading laws and regulations.

A few laws that regulate Web3 gaming are listed below.

• Anti-money laundering compliance
• Intellectual Property Protection law
• Data privacy regulations
• Tax regulations

Fragmented Application Stores

Mobile Application stores like Google Play Store and App Store ban certain Web3 gaming mobile applications. This ban makes accessing Web3 games difficult, slowing down the adoption.

The good news is that Google Play Store and App Store have updated their policy to be lenient with Web3 games and in-game NFTs, providing restrictions only for insecure gambling games against regulations.

Evolving Market Trends In Web3 Gaming

Let’s discuss 2024 market trends prevalent in the Web3 Gaming Market. They are

• AR & VR Integration
• Inclusive Development
• Mobile Gaming
• Play-to-earn model

AR & VR Integration

Web3 Games combines AR/VR (Augmented/Virtual Reality) technology to create wholesome gaming experiences.

By integrating AR/VR with Web3 platforms, the market opens up a world of possibilities, providing players with unparalleled immersion and control of their virtual experiences.

AR/VR tech makes Web3 games more interesting. This is an important trend to watch in 2024.

Inclusive Development

Many Web3 game developments happen with contributions and investments from gamers.

This inclusive development approach makes gamers feel like they belong in the system.

Sometimes, a game can be assured of real potential gamers even before it is developed.

This is another major trend shaping up currently in the Web3 gaming market.

Mobile Gaming

In general, the gaming world has grown exponentially, with mobile gaming leading the charge.

More people are turning to mobile phones to play Web3 games.

This trend is happening because of easier access and availability of mobile phones.

However, also keep a watch on the mobile app store’s ability to ban Web3 games, if they wish.

Play-to-earn Model

“Play-to-earn” is a game mode that rewards players for their in-game achievements with digital assets that have a monetary value.

The successful combination of the Play-to-earn model and Web3 technology is making a buzz in the gaming world.

There is a wide adoption of Play-to-earn Web3 games.

Axie Infinity is one example of a Play-to-earn Web3 game, which is immensely popular for letting players earn crypto while playing a Pokémon-style game.

Strategies to Market Web3 Games

Here are a few strategies for marketing your Web3 games in 2024. These strategies could help marketers build a strong Web3 audience for gaming.

Source: Pexels

Airdrop

Airdrop is a prominent marketing strategy in the crypto world.

It is the process of transferring free tokens to the audience's wallet to gather their attention.

Crypto audiences prepare for Airdrop by providing their wallet address well in advance before the Airdrop date.

In Web3 gaming, in-game assets are usually in the form of NFT (Non-fungible Tokens).

Rewarding NFTs to your potential gamers can be beneficial for acquiring leads.

Social Media

The social media community is the cornerstone of Web3 gaming.

Reaching out to potential audiences through social media is a proven method to capture leads.

Usually, Airdrops & Giveaways are announced on social media to attract attention.

Content Marketing

Content Marketing is a traditional method to acquire qualified leads for Web3 games.

Provide valuable content such as a blog, newsletter, & eBook to nurture your audience.

The magic happens when you consistently nurture your audience with valuable content.

Cross Marketing

Cross-marketing is the process in which two brands collaborate with each other for promotion.

These brands join hands to post content on social media, mentioning each other’s handles.

Cross-marketing introduces the involved brand’s clients to each other's ecosystem.

This is a widely used marketing strategy in the Web3 industry and staying true in the year 2024 too.

Influencer Marketing

Let’s say Vitalk Buterin, the founder of Ethereum, promotes your brand through video or in writing. Don’t you think this will increase your company’s Brand Awareness? This is exactly what influencer marketing is.

Influential people of Web3 are approached for the promotion of your brand.

However, the influencer need not always be Vitalik. It still works with less influential people, too.

Metaverse Competition

Hosting virtual tournaments among gamers spotlights Web3 gaming.

The game can be live streamed on social media like Twitch, a game-based social platform.

You can award winners with rare NFT prizes or Whitelist spots to incentivize participation.

Community Governance

The very essence of decentralized applications is Trust. Trust is enabled with community governance.

Forums allow community members to make proposals or have their say.

Be open to your community and share game development road maps.

Audit your gaming algorithms for integrity and share them with the community.

Also Read | Web3 Lead Generation for Attracting Potential Customers

Key Market Players

Key market players continue expanding their offerings to gain an advantage in this competitive gaming market.

I have discussed 2024’s top market players here. Have a look.

Dapper Labs

Dapper Labs is known for creating CryptoKitties, one of the first blockchain games to reach mainstream recognition.

Dapper Labs has continued to innovate with products like NBA Top Shot and blockchain.

Their approach to creating fun, accessible, and blockchain-based experiences is truly remarkable, and they have succeeded.

Axie Infinity

Axie Infinity is one of the earliest and most popular entrants into the Web3 gaming arena. It was developed by Sky Mavis. This game revolutionized the concept of play-to-earn.

Players breed & raise creatures called Axies, with the twist that these Axies and other in-game assets are actual NFTs owned by the players.

This model has provided a source of income for many, particularly in developing countries.

Decentraland

Decentraland is a decentralized virtual reality platform powered by the Ethereum blockchain.

In this virtual world, players can buy, build on, and monetize plots of land, just as in the real world.

Decentraland offers a unique blend of gaming, social interactions, and economic transactions, all controlled by the users.

Decentraland provides a fully immersive experience.

Sandbox

The Sandbox empowers creators and players to build, own, and monetize their gaming experiences in a virtual world.

The platform uses $SAND as its utility token, allowing users to perform transactions and interact within its vast ecosystem.

The Sandbox is notable for partnerships with major brands and celebrities, enhancing its appeal and reach.

Take Aways

In conclusion, the world of the Web3 gaming market in 2024 is incredibly dynamic and rapidly evolving.

With both encouraging prospects and potential challenges, Web3 gaming presents a unique blend of opportunities and risks.

Its success hinges on the adoption and integration of innovative technologies like blockchain, NFTs, AR, and VR, as well as the creation of new economic models such as the play-to-earn concept.

Despite challenges like wallet complexity, regulatory issues, and accessibility, Web3 gaming is pioneering a new era of immersive gaming.

As developers, marketers, or enthusiasts, it's essential to remain informed and adaptable in this exciting digital frontier.

Also Read | Strategies for Integrating AI & Blockchain