At first, the idea of combining blockchain technology with gaming caught the attention of the broader gaming community. This development promised decentralization and complete ownership of digital assets. Play-to-earn models, NFTs, and decentralized ownership were a large part of the appeal of Web3 gaming.
Fast forward to now, and there is not much engagement on the part of the gaming community. Web3 games are struggling to build a dedicated player base in the same way traditional video games have succeeded in doing. It brings into question the reliability, quality, and actual appeal offered by Web3 games. What are some of the challenges of Web3 gaming?
The Onboarding Obstacle: Complexity and Friction
For mainstream gamers, transitioning to Web3 gaming involves many technicalities. While the prospect of decentralized ownership is great in theory, especially for in-game items, the execution is not as simple. To put this into perspective, many individuals (in and outside of gaming communities) are not yet familiar with blockchain technology.
For example, the concept of anonymous crypto wallets, wherein users have complete control of all their transactions, is new to many. Crypto wallets, at the same time, are usually as far as most individuals’ knowledge goes when it comes to blockchain technology. As highlighted by crypto expert Anthony Clarke, a crypto wallet can be used for more than just monetary transactions, which many might not realize.
In a similar vein, this means there is a knowledge gap regarding understanding blockchain platforms and how to navigate them. This gap, of course, makes it that much more difficult for the average player to onboard onto the Web3 gaming platform. As a result, the added research and effort might seem like too much for traditional gamers, which can be off-putting. An added hurdle is the unappealing user interface on Web3 and the lengthy process before one can begin gaming. Many gamers prioritize efficiency, ease of access, and would opt for platforms that offer this over struggling to navigate Web3.
Gameplay Takes a Backseat to Economics
Another important element of mainstream gaming that makes it so appealing is its engaging gameplay. Web3 focuses more on the ‘play-to-earn’ model, which often means there is a disconnect with gameplay loop engagement. The model focuses on providing players with financial incentives, which, in theory, is a great way to attract players.
But Web3 falls short in that it leans on this model to the point of taking away from other aspects of gaming that would appeal more to players. While many gamers would enjoy being able to trade an in-game object for real money, it might not be worth using a clunky platform to achieve. This model has succeeded in attracting players motivated by earning potential, but gamers prioritize game enjoyment above much else.
The surge of financially motivated players is also a short-lived concept. While P2E offers incentives, it is unable to keep pace with the economy. Once these earning opportunities begin to diminish, what becomes of the Web3 title? This is a question linked to the main motivation associated with gaining more financially, but this desire will begin to dissipate after a certain period. So, depending on a financial incentive model to attract players may not be the best move. While it sets Web3 gaming apart from traditional gaming, it does not necessarily make it a better alternative.
The NFT and Tokenomics Conundrum
Another concern is how market value fluctuations affect these assets. With the established in-game NFT and token-driven economies, this would be affected by external factors. One of those factors would be fluctuating market values of these NFTs and tokens, which, in turn, affect in-game assets. For instance, a surge or drop in a particular coin or NFT outside of the Web3 title can mean a significant increase (or decrease) in the value of an item. Whereas a gaming item may have held significant weight, it has now become a devalued asset, which creates a dilemma for gamers.
Again, mainstream gamers do not really see the appeal in a concept like this, risking the devaluation of their assets. With mainstream gaming titles, in-game items maintain stagnant in their value, which guarantees longevity. To combat this, Web3 would need to find a way to balance its in-game economies so that it is actually appealing and worth it for gamers to make the transition. This can be done by creating a rewarding yet sustainable set-up to ensure in-game assets never fluctuate to the point of being devalued.
Lack of AAA-Quality and Polished Experiences
Another reason mainstream gaming dominates Web3 games is the quality difference. Web3 often offers clunky mechanics, low-quality graphics, and lacks compelling narratives. This means higher production quality and value are needed to increase the appeal of Web3 games to gamers.
As it stands, AAA titles in mainstream gaming go further than just graphics and efficient mechanics. They prioritize user engagement and immersion to build a unique and captivating experience. Web3 titles do not prioritize aspects that would make a game genuinely enjoyable, hence the lack of player engagement on the platform.
Community and Trust Issues
Where money is involved, there is usually more room for distrust to form. With the P2E model as a financial incentive, it can deter players from forming communities similar to those found in mainstream gaming. Generally, there is no sense of community on Web3, and gaming is usually centered around player interaction in-game and with one another. Perhaps a shift in focus to building and maintaining such a space would attract more players.
Is There a Path to Engagement?
Overall, there is much room for improvement in Web3 gaming. That is not to say the platform is unsalvageable, but many changes would need to be made for it to increase player engagement.
This would include a shift in priorities, moving away from its financial focus to emphasizing player enjoyment and community. Blockchain technology can be an invaluable part of mainstream gaming, but that can only be achieved if gameplay is prioritized over blockchain elements. Instead of having blockchain features as a selling point, using it to enhance the gaming experience would be a much more fruitful endeavor.