2022 has been a big year for Web3 in many ways. Even with some anticipated ups and downs, 2023 will undoubtedly be a landmark year. This past year, funding for Web3 gaming projects in the first quarter of 2022 alone had touched above $2.5 billion and now over 1,550 blockchain games are live as of June 2022. We anticipate that more developers will begin to explore the potential of Web3 games and that more investors will put money into Web3 game projects. Additionally, we believe that Web3 games will begin to be adopted by traditional gamers as well as by crypto enthusiasts. This will help to create a bigger and more diverse market for Web3 games, which will in turn lead to more innovation and better quality games. Ultimately, we believe that 2023 will be a breakout year for Web3 gaming.
Web3 is not without its critics and concerns, but we’re bullish on Web3 and here are some of the things we anticipate could happen in 2023 for the Web3 market.
The ‘killer app’ is coming
Like with any emerging genre, the audience starts small before it hits the mainstream. Right now, the Web3 game audience is still relatively niche; however, this could change in the future if a Web3 game becomes a ‘killer app’. A killer app is a game that is so broadly appealing and viral that it proves the core value of the emerging genre. While there hasn’t been a killer app for Web3 games yet, there are some very promising Web3 projects coming up that have the potential to be one. If any of these games are executed well, they could help to increase the popularity of Web3 games next year. Some of the most promising Web3 games include Waygu Games’ Undead Blocks, Big Time Studios’ Big Time, Utopian Game Labs’ Time Raiders, and Hymersion Studios’ Afterland. These games and many others have the potential to finally get more players into Web3 games next year.
More development investment in alpha and beta games
Web3 games are still in their infancy, but 2023 may be the year that they start to come into their own. A number of factors are coming together to create a perfect storm for Web3 game development. First and foremost, there is a growing awareness of the potential of Web3 games amongst investors and developers. Secondly, Web3 infrastructure is maturing and becoming more user-friendly, making it easier for developers to create high-quality games. Finally, a new generation of gamers is emerging that is comfortable with blockchain technology and keen to try out new gaming experiences. All of these factors are likely to lead to increased investment in Web3 game development in 2023, resulting in more and better quality games being released. We see many developers investing more resources into their games now, including: Afterland, Magic Craft, Undead Blocks, SolCraft, EvoVerses, Big Time, Avalon and LandBox.
Improved discoverability and user experience
Web3 development is a highly fragmented space, given that the traditional Web2 platforms like Steam don’t support blockchain games. As a result, Web3 developers have quickly realized the pain of discoverability and onboarding players to Web3 games. We expect that an increase in Web3 tech innovation – from players like Elixir, Flame and others – will make game development as well as onboarding much more accessible in 2023. The increased accessibility of Web3 development tools will pave the way for more experimentation and growth in the space, leading to improved discoverability and user experience for all.
First turbulence, then growth
The Web3 space has seen a lot of development in the past year, with an influx of new projects and games. However, the crypto crash of 2022 has put a damper on investment in the space. One major cause of the crash is the tightening monetary supply amid rising interest rates. The impact has been more hesitancy to invest in Web3 projects as a result.
As unfortunate as the crash has been, they are typical growing pains for a technology and a market that the industry is still in early development. At the same time, we have an influx of Web3 game projects that are dying off after the crypto crash, which is not necessarily a bad thing when you see the industry organically weeding out poorly designed projects. Both of these trends will contribute to better projects and increased investment over time. In the meantime, Web3 developers will need to be patient and continue to build great products that solve real problems.
Some blockchains will collapse, while others rise
There are currently hundreds of different blockchains in existence, and many of them are quite similar. This fragmentation is one of the biggest obstacles to mainstream adoption of crypto assets and applications. In order for Web3 to take off, we need fewer, more secure, and more widely adopted blockchains. The Bitcoin network is certainly a mainstay across a wide range of industries, but crypto games largely use other chains like Ether. I expect many chains to either fail or merge to create a more secure and trustworthy front of networks for users. Only then will we see mass adoption of Web3 technologies.
The strong success of Web3 games like Axie Infinity, Decentraland and The Sandbox have grabbed much attention from the beginning. More and more game projects are showing improved gameplay experiences attributed to cutting-edge technologies and innovations in the landscape. The time is ripe for unlocking new experiences and enjoying incredible growth for Web3 in 2023.
Web3 technology has enabled a new level of gaming that was not possible before. With Web3, players can own their in-game items, experiences and data. This gives them a true sense of ownership and control over their game experience. Additionally, Web3 games are also designed to be highly engaging and social, with features like chatrooms, forums and leaderboards that encourage players to interact with one another.
As more people discover the benefits of Web3 gaming, we expect to see a surge in popularity for these types of games in 2023.