Bridging Pixels and Blockchain: The New Horizon of Play

Web3 gaming, also known as blockchain gaming, is a new and emerging type of gaming that utilizes blockchain technology to create decentralized games. Decentralized games are games that are not controlled by a central authority, such as a game publisher, but rather by the players themselves. This is achieved through the use of blockchain technology and non-fungible tokens (NFTs).

NFTs are digital assets that are unique and cannot be replaced. They can be used to represent in-game items, such as characters, weapons, and land. When an NFT is purchased, the buyer owns it outright and can do whatever they want with it, including trading it, selling it, or using it in other games.

Web3 gaming offers a number of advantages over traditional gaming, including:

• Ownership of in-game assets: Players in Web3 games truly own their in-game assets, and can trade them or sell them on NFT marketplaces.

• Transparency: Web3 games are transparent and auditable, as all transactions are recorded on the blockchain.

• Interoperability: In-game assets from one Web3 game can often be used in other Web3 games.

• Player governance: Players in Web3 games often have a say in the development and governance of the game.

The convergence of traditional and decentralized gaming platforms

The convergence of traditional and decentralized gaming platforms is already underway. A number of traditional game publishers are experimenting with Web3 technology, and some are even releasing their own Web3 games. For example, Ubisoft has released a number of NFT-based games, and Epic Games has announced that it will support NFTs in its Unreal Engine game engine.

There are a number of reasons why traditional gaming companies are pivoting to Web3 gaming. First, Web3 gaming offers a number of advantages over traditional gaming, such as ownership of in-game assets, transparency, interoperability, and player governance. Second, Web3 gaming is a rapidly growing market, and traditional gaming companies want to get in on the ground floor.

Current and future market size and number of players

The global Web3 gaming market is estimated to be worth $3 billion in 2023, and is projected to grow to $100 billion by 2028. This represents a compound annual growth rate (CAGR) of over 100%.

The number of Web3 players has increased significantly in recent years. In 2021, there were approximately 1 million daily active Web3 players. This number has since grown to over 800,000 daily active players, even in the midst of a bear market.

Current and projected revenues

The global Web3 gaming market is expected to generate $10 billion in revenue in 2023, and is projected to grow to $200 billion by 2028. This represents a CAGR of over 100%.

Legacy gaming companies pivoting to Web3

A number of legacy gaming companies are now pivoting to Web3 gaming. These companies include:

• Ubisoft

• Epic Games

• Square Enix

• Take-Two Interactive

• Activision Blizzard

These companies are investing in Web3 gaming because they see it as the future of the gaming industry. Web3 gaming offers a number of advantages over traditional gaming, such as ownership of in-game assets, transparency, interoperability, and player governance.

Here are some specific examples of legacy gaming companies pivoting to Web3:

• Ubisoft has released a number of NFT-based games, including Sorare and Rabbids Coding.

• Epic Games has announced that it will support NFTs in its Unreal Engine game engine.

• Square Enix has partnered with The Sandbox to develop a metaverse experience.

• Take-Two Interactive has acquired Zynga, a mobile gaming company that is developing Web3 games.

• Activision Blizzard has announced that it is developing a Web3 game based on its popular franchise Call of Duty.

The impact of Web3 gaming on the gaming industry

Web3 gaming is expected to have a significant impact on the gaming industry. Here are some of the key ways in which Web3 gaming is changing the gaming industry:

• Ownership of in-game assets: Web3 gaming is giving players ownership of their in-game assets. This is a major change from traditional gaming, where players do not own their in-game assets and can lose them if the game is shut down or the publisher goes out of business.

• Transparency and accountability: Web3 games are transparent and auditable, as all transactions are recorded on the blockchain.

• New and innovative game mechanics: Web3 gaming will enable developers to create new and innovative game mechanics that were not possible before. For example, players can now earn real-world rewards for their in-game achievements.

• More immersive gaming experiences: Web3 gaming will enable developers to create more immersive gaming experiences by leveraging the power of blockchain technology. For example, players can now own and trade virtual land and other assets in the metaverse.

• A more inclusive gaming community: Web3 gaming will make the gaming community more inclusive by giving everyone the opportunity to participate and contribute. For example, players can now invest in and support their favorite games through decentralized autonomous organizations (DAOs).

Conclusion

Web3 gaming is a rapidly growing industry with the potential to revolutionize the gaming industry. Web3 gaming offers a number of advantages over traditional gaming, including ownership of in-game assets, transparency, interoperability, and player governance.

A number of legacy gaming companies are now pivoting to Web3 gaming, recognizing the potential of this new technology. Web3 gaming is expected to have a significant impact on the gaming industry, giving players more ownership and control over their gaming experience.

Overall, Web3 gaming is a very exciting new development in the gaming industry. It has the potential to create a more player-centric and equitable gaming experience for everyone.