Since the crypto boom, Web3 gaming has often divided opinions within the space. While most people accept that blockchain technology offers benefits like ownership and interoperability of assets, transparent gameplay, and token rewards that will improve the overall gaming experience, many people, especially in the traditional gaming community, have not fully bought into this.

There are those who maintain that traditional gaming is perfectly fine, and that decentralization does not necessarily enhance the average gamer's experience. Also, some enthusiasts who recognize the potential of Web3 technology in gaming express reservations about its current readiness. They point out issues like low-quality gameplay and the considerable distance we still need to cover before witnessing widespread Web3 adoption in gaming.

These claims are not unfounded, which is why the Web3 gaming industry has not exploded as everyone thought it would back in 2021. After the crypto boom, game developers were just developing Web3 games and putting them out, hoping they would stick. They didn’t really spare a thought for the infrastructure needed for these games to run smoothly, leading to many gamers experiencing low-quality gameplay and having a terrible impression of Web3 games.

Shift in Focus

There has been a considerable shift in the Industry’s focus from 2021 to now. According to a comprehensive report released by gaming DAO Game7 late last year, game developers are now much more focused on the infrastructure supporting these games than they were a couple of years ago.

In 2021, the ratio of games launched to networks built to support them was 29:1, meaning there were 29 times as many games launched as networks to support them. In 2023, the ratio was 2.8:1, meaning there were only 2.8 times as many games than networks built to support them. This represents a drastic change in just two years, meaning the industry has been listening to the gaming community.

This change will definitely result in a more stable and efficient gaming ecosystem within Web3. It will also give gamers a better experience when they play Web3 games, leading to increased adoption within the gaming industry.

Top gaming studios are investing in Web3

According to recent CoinGecko findings, 29 out of 40, or 72.5% of the top video game companies by market cap, have ventured into Web3. These companies have gotten involved in Web3 in varying degrees. Some have directly invested in Web3 gaming projects, while some have invested in blockchain game development or hired experts for blockchain-related positions.

In spite of all this, only seven of the 29 (24.1%) are developing blockchain games:

1. Take-Two Interactive - Sugartown (Ethereum)

2. Nexon - Maplestory Universe (Polygon)

3. Bandai Namco - YUZO (Oasys)

4. Konami Holdings - Project Zircon (TBC)

5. Krafton - Migaloo (Settlus)

6. Square Enix - Symbiogenesis (Polygon)

7. Ubisoft - Champions Tactics: Grimoire Chronicles (Oasys)

Apart from developing blockchain games, some of these high market cap video game companies are taking notable Web3 initiatives. Some of these include:

1. Microsoft - Invested in WeMade, a blockchain game producer.

2. Unity Software - Introduced the "Decentralization" category page in Unity Asset Store with 13 verified solutions.

3. Sony - Invested in Startale Labs, a Web3 incubator and subsequently announced plans to develop a new blockchain platform.

4. Electronic Arts - Partnered with Nike's .Swoosh platform.

Global Distribution of Web3 Game Developers By Country

The United States of America still largely dominates the Web3 game development space, with nearly 1 out of every 3 (28%) web development teams in the USA. The rest of the world still has a lot of work to do with regard to catching up to them, with certain parts of the world needing to do more work than others.

Here’s the distribution of Web3 Game Developers By Country:

It’s worth noting that South Korea and Asia as a whole are also making impressive progress in Web3 gaming.

Conclusion

The Web3 gaming industry is an industry with so much potential for growth, which is why so many big players in the gaming industry are paying attention. With all the infrastructural developments happening, you can expect to see more games as well as games with much better quality gameplay in the coming years, which will be followed by increased adoption. The Future of Web3 Gaming is exciting, so strap in and get ready for the ride.