Monetizing gaming in the Web3

News Team February 13, 2024

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Monetizing gaming in the Web3

The gaming industry is undergoing a significant transformation. Traditional gaming, once the undisputed leader of the sector, is facing challenges from an unexpected quarter – Web3 gaming. The latter, powered by blockchain technology, is not just surviving but thriving, showing a bullish growth of 33 percent in Q4 alone.

Shift from traditional gaming to Web3

Traditional gaming, on the other hand, is challenged with market saturation and dwindling user numbers. The situation is further exacerbated by regulatory challenges, such as China’s recent draft rules to curb spending and rewards in video games. This move led to a staggering $80 billion loss in market value for top gaming giants.

In response to these challenges, traditional gaming studios are exploring new ways to attract and retain users. The answer, it seems, lies in the decentralized models of Web3.

Web3 gaming offers a host of benefits that traditional gaming simply cannot match. For instance, game developers can avoid intense competition in popular categories and more easily acquire gamers in a less crowded landscape. Blockchain gaming also boasts community-driven user acquisition methods beyond traditional advertising, such as airdrops and in-game assets.

Moreover, Web3 games allow developers to sidestep policy restriction issues in some countries. This is a significant advantage, given the increasing regulatory scrutiny in the traditional gaming sector.

But the benefits of Web3 gaming extend beyond the developers. Players, too, stand to gain from this shift. In the Web3 world, games create and oversee entire online economies, and players can earn digital assets from playing blockchain games. They can aggregate, control, and monetize their identity. Beyond play-to-earn, gamers can earn passive income by sharing their information with titles and participating in brand interactions.

The future of gaming lies in Web3. As traditional gaming continues to grapple with market saturation and regulatory challenges, Web3 gaming is poised to take centre stage. With its unique benefits for both developers and players, it’s not just a viable alternative to traditional gaming – it’s the next big thing in the gaming industry.

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