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The iGaming sector is experiencing remarkable growth, with global market estimates reaching $127 billion by 2027. A key contributor to this growth is web3 gaming, which enhances player experiences through features such as ownership of in-game assets, community-led development, and improved transparency.
In contrast to mobile gaming, which can be expensive and often necessitates numerous in-app purchases to access a satisfying gaming experience, web3 allows users to earn from their spending and fosters a sense of ownership within the game. However, web3 gaming is still emerging and faces challenges before it can fully resonate with mainstream audiences.
The growing appeal of web3 gaming
From February 2023 to 2024, the web3 gaming sector secured over $162 million in funding across various stages. Enhanced gaming experiences and novel revenue opportunities for developers via token sales, NFT trading, and in-game assets create a more sustainable and varied business model in a decentralized, transparent framework. Web3 gaming offers unique opportunities for developers to experiment with innovative concepts, including DeFi integration and VR/AR experiences—and major gaming studios worldwide are paying attention.
A recent report by CoinGecko indicates that 29 out of the 40 largest video game companies globally are investing in web3 gaming, which includes Microsoft, Tencent, Sony, and Nintendo. This investment encompasses direct funding of web3 gaming projects, involvement in blockchain game development, and recruitment for blockchain-related positions. Epic Games, a pioneer in eSports, is also embracing the web3 trend with plans to launch at least 20 NFT games on the Epic Games Store by 2024.
Engaging gamers on Telegram
While web3 gaming offers numerous opportunities, it remains a specialized niche. Game studios and developers must adopt innovative strategies to leverage existing user bases and engage them more profoundly. Games based on Telegram exemplify this approach, utilizing the rapidly evolving ecosystem of token-backed mini-apps to attract over 900 million users with unique gameplay, token incentives, and digital asset airdrops. Following its May airdrop for Notcoin (NOT), the token’s market capitalization soared to over $2 billion within weeks.
Recognizing the necessity of reaching gamers where they are, Notcoin has partnered with Helika to launch an incubator for the upcoming generation of Telegram games. The Telegram Gaming Accelerator will support developers of Telegram-based mini-apps in better understanding their users, creating engaging experiences, and attracting newcomers through value-rich incentives. As more traditional gamers discover the potential of web3 gaming, mainstream adoption will unfold gradually but steadily.
Expanding web3 gaming for the mass market
Even with substantial momentum, web3 gaming faces further hurdles to achieve mass market penetration. For those unfamiliar with crypto, the entry barriers can be daunting due to the complexities surrounding web3 wallet integration and self-custody best practices, often too challenging for the average gamer. Many web3 games encounter difficulties gaining traction because of high fees and latency issues stemming from underlying blockchain infrastructure, while developers struggle with a lack of quality analytics to understand their on-chain game economies.
As blockchain-based gaming strives to tackle these challenges, simplifying blockchain interactions and optimizing technology to reduce latency are critical, with reliable data partners playing a key role. Web3 game developers need insights into which game elements are effective (and which aren’t) to deliver a user experience that is both smooth and engaging, all while harnessing the advantages of web3. This remains essential for mass onboarding.
As players seek more immersive gaming experiences, web3 gaming is pivotal, and global gaming studios are eagerly participating. With nearly a billion users internationally, initiatives like the Telegram Gaming Accelerator represent a significant stride toward catalyzing mass adoption and stimulating the game theory needed to welcome the next billion users into the omnipresent web.