Web3 games should shift their focus from “play-to-earn” to “play-and-earn” in order to attract new mainstream crypto adopters, according to Gracy Chen, managing director of the trading platform Bitget. Chen believes that the problem with most Web3 games is that they prioritize economic elements over gameplay. In an interview with Cointelegraph, Chen stated that Web3 games in 2024 need to prioritize gameplay in order to appeal to Web2 gamers.
Traditionally, Web3 games have faced criticism for their lack of user-centricity and engaging gameplay, as many of them solely focus on offering lucrative crypto incentives to players. However, Chen noted that the industry is now shifting towards more player-centric games, thanks to the involvement of Web2 game founders in the crypto gaming space.
While Chen is optimistic about the emergence of player-centric games, she also cautioned that most current GameFi projects are of low quality but have high valuations. She advised investors to only invest in games that have finished products and prioritize user-centric approaches.
Despite the lack of player-centric projects, Web3 games continue to attract investment. According to a 2023 CoinGecko report, over 72.5% of large gaming companies are investing in Web3 games. Out of the 40 largest gaming companies, 29 have ventured into Web3, with only seven of them developing blockchain games.
One example of a GameFi project is Pixelmon, which raised an $8 million seed investment round from a series of Web3 games in February. However, Pixelmon’s first game, Warriors of Nova Thera, only entered alpha testing in April.
Despite these challenges, Web3 games accounted for over 30% of all decentralized application activity in the first quarter of 2024, according to a report by DappRadar on April 11.
In order to achieve mass adoption, Web3 games need to prioritize player-centric experiences, according to a Websea executive.