Web3 games are battling it out on the blockchain, dominating activity with 1.1 million daily users in 2023. However, attracting these players remains a challenge, according to the Blockchain Game Alliance (BGA).

Onboarding Obstacles:

The BGA report highlights onboarding as the biggest hurdle for Web3 games, with friction far exceeding Web2 titles. Dean Takahashi, from GamesBeat, explains this disparity – gamers are comfortable with familiar in-app purchases on centralized app stores. Web3 games, on the other hand, struggle with app store restrictions and visibility issues.

Monetization Maze:

Adding another layer of complexity, cryptocurrency payment limitations create monetization barriers. Setting up wallets can be daunting for new players, further hindering mobile adoption. Takahashi emphasizes that game companies can't even direct players to off-store crypto purchases.

The Discoverability Dilemma:

So, how do Web3 games find their audience? Takahashi believes discoverability is key. BGA echoes this sentiment, highlighting user acquisition and retention as vital metrics for growth. Traditionally, Web2 games rely on collecting personal data and targeted advertising on centralized platforms. However, this approach clashes with the core tenets of Web3, where user data remains anonymous and games operate on decentralized networks.

Data Dilemma: Friend or Foe?

While data analytics pose challenges, Anton Umnov, CEO of Helika, argues that creating engaging games is paramount for Web3 adoption. His company, Helika, aims to bridge this gap by offering specialized engagement data through "Helika Accelerate." Umnov emphasizes the importance of data-driven insights for optimizing marketing campaigns, targeting user segments, and fostering long-term player value.

Decentralized Data Solutions:

Despite the hurdles, blockchain technology offers potential for decentralized data collection. The BGA report mentions "on-chain targeting," allowing developers to leverage player data for crafting better experiences. Publicly available on-chain data can be transformed into actionable insights for attracting new users, as Umnov highlights.

Balancing Privacy with Personalization:

Of course, data privacy remains a major concern for gamers. Gabi Musayev of Galxe proposes integrating zero-knowledge technology at the protocol level to ensure data privacy while allowing access for user acquisition purposes.

The Rise of AI in User Acquisition:

Artificial intelligence is poised to play a significant role in the future of user acquisition for Web3 games. Straith Schreder of Candy Digital predicts AI will accelerate personalization and dynamic game content (PCG) creation. This real-time understanding of user behavior, powered by AI analytics, will enhance personalization and keep players engaged.

The Verdict?

Blockchain games have the potential to revolutionize the industry. However, overcoming the discoverability dilemma and striking a balance between data-driven insights and user privacy will be crucial for their long-term success. Can Web3 games find a way to attract players while staying true to their decentralized core? Only time will tell.