A short history of gaming
Gaming has come a long way since the days of physical copies and in-person purchases. With the rise of the Internet, gamers can now purchase and download games directly onto their devices, allowing for almost instant access to their favorite titles. The introduction of the free-to-play business model further increased gaming adoption, with games like Fortnite generating billions of dollars through in-game purchases and subscriptions. It is estimated that four out of five dollars earned by games are now generated by free-to-play business models.
One upping free-to-play
However, blockchain gaming is now taking things one step further. Many blockchain games not only offer free gameplay but also reward players with tokens, coins, or NFTs that have real-world value. This concept of "play to earn" is transforming the gaming industry and could potentially bring more people into the space.
A Slight Bump in the Road
Initially, web3 games were not letting gamers start playing their games for free. Usually, they require that players buy some in-game asset to start playing. However, due to the open nature of the economy of these games, the high demand for their assets skyrocketed their price. People were spending thousands of dollars to just start playing a game, expecting to earn that money back. This demand and the promise of great returns were apparently fueling the rewards that players were receiving. But that hinged on the fact that the game would need an inexhaustible supply of new players to keep going. As soon as we entered the bear market, the price of the assets tanked, which meant that players were now not making enough money, which consequently stopped the inflow of new players into the ecosystem. Web3 gaming experts have called this phenomenon the death spiral. But web3 game developers are now waking up to this problem and releasing their AAA-style titles for free.
What the rise of web3 gaming would mean for crypto
Gaming has become more than a pastime in today's world. In fact, one-third of the world's population is already playing video games, and the numbers are only increasing. What's even more surprising is that the incentives to play are mainly for entertainment purposes only.
The rise of gaming has been phenomenal, and it's now the largest sport in the world. While some may not consider video gaming a "sport," Esports is watched by more fans than any other sporting event in the world. In fact, the most recent Esport Dota2 tournament was viewed by more spectators than any other major league sporting event in history.
As the gaming industry continues to grow, it's not hard to see why Web3 game developers are excited about the future. If they are able to create fun, engaging gaming experiences, they'll be able to bring at least a billion people onto the blockchain standard. The potential for this is enormous and could have a significant impact on the future of the blockchain industry.
In recent times, there has been a significant buzz around metaverses, and several big tech companies, such as Microsoft, Sony, and Facebook, have joined the bandwagon. These tech giants are investing billions of dollars in the research and development of these digital worlds, with Facebook alone investing over $10 billion in metaverse development.
The popularity of decentralized metaverses such as Decentraland and the Sandbox has also been soaring, attracting gamers, collectors, artists, musicians, investors, and entrepreneurs. These metaverses offer an immersive experience where users can play blockchain games, earn cryptocurrency, and display, buy, or sell NFTs worth millions of dollars. This has attracted the attention of a lot of Web3 and gaming enthusiasts.
However, it doesn't end here. Eventually, the mainstream will also use the metaverses, not just select groups. If you have been paying attention lately you’d see that we as a civilization are spending more and more of our time on digital platforms. A 2021 survey conducted by Common Sense Media revealed that teenagers in developed countries are spending on average 8 hours per day on social media and other digital platforms. This trend is likely to continue and even accelerate as we digitize classrooms and other traditionally non-digital locales. The internet has completely taken over the world; it has transformed the way that we connect, learn, educate, and entertain. However, this digital realm still doesn’t have an immersive experiential interface, and that’s exactly what a metaverse technology will bring to us.
We want to clarify that this is still speculation, as we’re still quite far away from a completely real metaverse experience. But as long as there are no physical limitations, we will eventually reach that destination. If that’s the case, then the metaverse will be a channel to virtually enter the Great Online Game that Packy McCormick talks about in his epic essay. Essentially Packy points out in the piece that the internet has gamified many of the human activities and it will continue to do so until everything is online and gamified. However, if you're going to invest real money in the digital realm, how will the creators of these platforms grant you rights over the things you own or have a claim over?
through blockchain technology.
Non-fungible tokens (NFTs) have been gaining immense popularity in recent times, as they offer a unique asset class that bridges the gap between the real and digital worlds. They provide investors with the opportunity to own unique digital assets that have real-world value, making them an exciting prospect for collectors and investors.
However, what makes NFTs truly fascinating is their potential for use in the decentralized world of metaverses. In the digital landscape of metaverses and virtual worlds, NFTs provide a means for true digital ownership rights without the need for centralized authorities. This makes them an essential element in the growth of metaverse ecosystems, where NFTs can be utilized to monetize creativity and intellectual property, providing new ways to generate revenue in digital environments. Metaverses and Web3 games are closely intertwined, as both are built on the principles of decentralization and community ownership. At their core, both metaverses and web3 games aim to create immersive digital experiences that allow users to engage with one another in entirely new ways.
As you can see, folks, many trends point towards the inevitability of Web3 gaming and the metaverses. In a sense, both are essentially the same thing. Web3 games at the moment are early experiments with low stakes and immersability. If you liked this piece, make sure to check out other articles on our blog. See you next time!