The State of Web3 Gaming in 2024: What’s Been Happening and What’s to Come
As the year comes to a close, gaming companies are releasing their year-in-review reports. One report from blockchain gaming accelerator Game7 reveals a significant drop in the number of Web3 games launched this year compared to previous years. In 2024, only 223 Web3 games were launched, a 65% decrease from the 640 games launched in 2022 and a significant drop from the 811 games launched in 2021.
So why the sudden decline in game releases? According to Robbie Ferguson, co-founder and president of Immutable, one of the reasons is the time lag in game production. Ferguson believes that there has been a surge of investment in Web3 gaming, but it takes time for developers to create standout hits. He mentions that roughly $15 billion has been invested in Web3 gaming over the past three years.
Similarly, John Stefanidis, CEO of Balthazar Gaming DAO, acknowledges the increase in investment in Web3 gaming. He believes that the belief in Web3 has continued to grow, even in the bear market. Despite the challenges, he remains optimistic about the future of Web3 gaming.
Gabby Dizon, co-founder of Yield Guild Games, predicts that the most successful Web3 games in 2024 will focus on being entirely free-to-play to attract players. She suggests that play-to-earn (P2E) games will pivot to this model.
One game to keep an eye on is Shrapnel, a AAA first-person extraction shooter blockchain game. Set in the year 2038, players must gather valuable in-game assets and safely extract them while facing off against enemies and rival players. The game has been generating a lot of hype in the industry.
However, according to John Stefanidis, the games that will succeed might be the ones that promise less but deliver more. He believes that some games are struggling to acquire users because they haven’t delivered on the promises they made.
Another game making waves is Phantom Galaxies, a sci-fi action RPG game published by Blowfish Studios. Set in the aftermath of an interstellar war, players join the Ranger Squadron as a junior ranked officer controlling a transforming Starlighter. The game offers an official governance token called Astrafer, which can be used to upgrade the Starfighter.
Disney has also entered the Web3 space with its NFT platform called Disney Pinnacle. The platform offers digital pins featuring iconic cartoon characters from the past century, as well as characters from Pixar and Star Wars. However, some experts believe that the entry of mega-billion dollar companies into the Web3 scene is irrelevant and that most of the value capture in the web has been done by web-native startups.
Overall, the state of Web3 gaming in 2024 shows a decline in game releases but an increase in investment and interest. Developers are focusing on creating standout hits, and there is a shift towards free-to-play games. The future of Web3 gaming looks promising, and it will be interesting to see what hits emerge in the coming year.
Sources: Game7, Magazine, Cointelegraph