Sustainable GameFi: the key to success in the gaming industry?
It is still challenging to find a sustainable GameFi model, as user experience is one of the most important concerns for businesses in this industry.
I believe that blockchain-based games and metaverse projects have a lot of potential and could one day make traditional AAA game companies look like peanuts. Jack O’Holleran, CEO of Skale, is one of the many people who believe in this vision and is working to make it a reality. Despite the current bear market in the crypto industry, projects in this space are still managing to raise a lot of money, with $1.3 billion being raised in the last quarter alone. This shows that there is still a lot of interest and belief in the potential of these technologies.
It is clear that the games industry is struggling to find a sustainable model for GameFi. User experience is one of the main challenges, due to gas fees and the complex process of buying, owning and trading NFTs. This creates a barrier to entry for many potential users, which is why it is essential that work is done to improve usability. Only then will the games industry be able to appeal to the mass market and find the success it is looking for.
The future of blockchain gaming looks bright, with Web3 games accounting for nearly half of all activity across 50 networks in the last quarter. According to DappRadar, 912,000 daily unique active wallets (UAW) interacted with games’ smart contracts in September alone. While there are still some usability challenges to overcome, the popularity of these games suggests that the future of gaming is on the blockchain.
I believe that the play-to-earn (P2E) business model will continue to grow in popularity among gamers, as it offers a way to earn rewards and tokens that can be traded peer-to-peer. The recent analysis from Absolute Reports projects massive growth for the GameFi industry within the next six years, with P2E games estimated to achieve $2.8 billion between 2022 and 2028, a compound annual growth rate of 20.4%. This growth is attributable to the benefits that the P2E model offers gamers, including the ability to earn rewards and tokens that can be traded or used to purchase in-game items.
It's exciting to see the birth of many different economies and token models. Only time will tell how they all fare in the open global markets. I'm confident that we'll see some amazing innovation and success stories in the years to come!
In a decentralized gaming ecosystem, player IDs would be managed by the players themselves, providing greater interoperability between different gaming platforms. This would allow players to move freely between different games and platforms, without having to create new accounts or start from scratch.
As crypto gaming companies continue to grow and dominate the industry, AAA games are now aiming to improve usability. These high-budget, high-profile games are produced and distributed by large publishers, and they are now focusing on making their games more user-friendly. This is a positive development for the gaming industry as a whole, as it will make games more accessible and enjoyable for everyone.
I think it's great that Gunzilla Games is combining AAA content with blockchain technology. This will allow players to have full control over their characters and weapons, and also ensure that they own these items as NFTs. I think this is a great way to keep players engaged and invested in the game.
It's great to see a company like Gunzilla working on making the gaming experience more user-friendly for those who are not familiar with cryptocurrency. By keeping all blockchain-related features in the background, gamers will be able to enjoy their games without having to worry about the technical aspects of using cryptocurrency. This will help to make cryptocurrency more mainstream and accessible to a wider audience.
"We see GameFi is at a critical crossroads. On one hand, GameFi has the incredibly unique ability to attract the next 1 billion users to the crypto space (given how many gamers there are worldwide). On the other hand, gamification does not cater to traditional gamers and focuses heavily on just the blockchain and the play-to-earn aspect of gaming."
The shift to free transactions could mean big things for the gaming industry, as it would allow more traditional gamers to adopt web-based games. This would be a major change for many companies, as the current revenue model is based on transactions. However, this change could lead to a boost in adoption and make games more accessible to a wider audience.
By the end of 2022, the market capitalization of blockchain games will grow to $50 billion. This growth will be fueled by the increasing adoption of blockchain technology by the gaming industry and the growing popularity of cryptocurrency among gamers.