Blockchain technology has witnessed a significant increase in popularity over the last decade. Thanks to ample room for reaching beyond the vertically Centralised nature of Web2, especially Web3 games are showing great future potential. But just like any other Blockchain-based project, Web3 games also face considerable challenges regarding the user onboarding process. Despite the staggering market growth projections, most Web3 companies struggle to attract new users and retain the existing ones.
The Blockchain games market alone is projected to grow from $4.6 bn in 2022 to an incredible $65.7 bn in 2027 at a Compound Annual Growth Rate (CAGR) of 70.3%, according to recent Global Blockchain Game research. Yet still, Web3 games not seldom suffer from the lack of a sustainable userbase. Why is it so, and what steps to consider to bring mainstream players to Web3? In short, to make it more accessible and democratic.
Democratisation of E-Sports as a Web3 Games Onboarding Driver
The global market size of esports was valued at over $1,44bn in 2022 and is expected to grow rapidly, with a value of a staggering $5,48bn in 2029, which represents a compound annual growth rate of 21%.
How Do These Astonishing Numbers Apply to Retail Players?
Poorly. To get into a professional esports league, aspiring contenders face immense demands to deserve a try – endless hours of obsessive training, generous sponsors, an influential team, and a handful of luck, to name a few must-haves.
Bearing that in mind, retail players have little to no chance of accessing the “big league” nor utilising competitive gaming as a means of side income. However, the latter may be the gateway to attracting new players since, according to the collaborative Crypto.com and Newzoo research, the most frequent reason among Web2 users for giving Blockchain games a try is to “earn a bit extra on the side.”
These results open the door for Web3 games E-Sports to take place and fulfill this market demand, thanks to decentralisation and community-organised tournaments.
Another strong point of Web3 games is true ownership of NFT in-game assets, which are not exclusively tied to the respective game or company. As explained by QORPO Game Studio CEO Rastislav Bakala:
“The price of maxing out a character’s attributes and inventory in games like Diablo Immortal can reach over $100,000, yet players are unable to sell or monetise these assets in any way. That’s insane money for game content. Furthermore, you can’t even manipulate the in-game content. There’s no way you can sell these assets for real money; in fact, users are basically funding a black hole.This is an abuse of the free-to-play system by the developer.”
Yet still, in-game consumer spending accounts for the biggest share of the gaming market, with approximately $65bn worldwide in 2022, and is expected to soar up to over $74bn as soon as 2025. Despite the detrimental circumstances of the current game market, this statistic has a favorable impact on Web3 gaming prospects since NFTs provide much more opportunities than Web2 virtual items.
Besides genuine ownership and applicable utilities, players have ultimate control over their NFTs and can expect a feasible return on investment thanks to the freedom of trading them however they like. According to Rastislav Bakala, thanks to this quality, we can expect three times bigger consumer spending in the near future. Having said that, while the prospect might seem utopian on paper, the reality strikes back with several challenges to be solved.
Meeting The Demands of Mainstream Players
The most significant problem of Web3 projects stems from the lack of accessibility for the traditional user. To attract the Web2 userbase, companies have to meet their demands by addressing the following concerns:
- Unintuitive onboarding process
- Insufficient awareness of the Blockchain technology
- Fear of losing money
- Paywalls & costs of entry
Building a User-Friendly and Universal Web3 Ecosystem
To address these concerns, we set ourselves to build a well-integrated Web3 gaming Ecosystem, which not only amalgamates all our products under one roof but also conforms to the user experience Web2 users expect. From initial login to gaming and trading, we strive to encourage Web2 users to do what they are used to. We give our users a choice to proceed with both Web2 and Web3 way by allowing them to register either with Metamask or any Web2 login they prefer, such as their Google, Facebook, or Twitter account.
The whole effort is to provide our users with a seamless flow, which doesn’t allow them to notice that they just stepped into the waters of Web3. Therefore we developed QORPO ID, an all-in-one Ecosystem solution, which serves as an SDK custody wallet, universal game launcher, drag-and-drop NFT manager, as well as a platform for socialization with a simple UI, typical of Web2 apps. QORPO ID lets users switch between Web2 and Web3 with a push of the button within a single and aesthetically pleasing administration.
Competitive Gaming Experience and Community-Driven Tournaments
Another high point of Web2 players’ expectations from Blockchain gaming is the fun factor. While “earning a bit extra on the side” indeed topped Crypto.com and Newzoo research, the overall gaming experience also landed as an arbitrating factor.
Therefore we focus on the quality of the games first. With our game titles, such as MMO shooter Citizen Conflict or the upcoming Battle Royale adventure AniMate, players can count on AAA quality developed in Unreal Engine 5 to compete with the highest demands on par with the latest Web2 games by major studios.
In regard to costs of entry fears, we consider it pivotal to make all our games free to play, along with ample opportunities to compete and win in the sponsored tournaments with generous prize pools or even letting the community organise their own tournaments.
This way, we satisfy all primary expectations mainstream players are looking for in Web3 projects, i.e. ease of use, high-quality products, and opportunities to monetise their skills with minimised costs of entry.
Blockchain Games at the Forefront – Will Games Revolutionise Web3?
According to the aforementioned studies and statistics, incredible growth looms ahead of games within Web3, despite the challenges which have to be tackled to reach the full potential of Blockchain gaming.
Having said that, Levan Kvirkvelia’s own research suggests that Web3 games didn’t record desired YoY growth. However, the user retention rate is a completely different story. With an average user retention rate of 10 to 30% for several months, Web3 games currently have a 3 to 7 times bigger retention rate than Web2 games, making games the best-performing services among Web3 products overall.
With such a feasible prospect, it’s likely that with the right focus, Web3 gaming will able to ri
val the mainstream game industry in the years to come.