As 2023 draws to a close, I will write on the pages of the Oman Observer some columns to summarize what happened in 2023 in specific industries, as well as anticipating what lies ahead in 20204. Today I want to talk about the gaming industry. With ups and downs throughout the year, buzzing with blockchain innovations, the gaming industry is now at a pivotal crossroads. A striking report from Game7, a blockchain gaming accelerator, reveals a sharp decline in new Web3 game launches. This year saw just 223 new games, a significant drop from the 640 in 2022 and even further from 811 in 2021. So, what's behind this dramatic slowdown in the Web3 gaming space? The optimistic perspective, as suggested by Immutable co-founder Robbie Ferguson, is that excellence takes time. He emphasizes the influx of investment into Web3 games, totaling around $15 billion over three years. This investment is expected to yield major hits, but patience is crucial. Immutable itself now boasts over 200 games on its platform, with big names like Shardbound Blade Of God, Arkbound, and Galactico Manager 24 receiving substantial funding.
John Stefanidis of Balthazar Gaming DAO echoes this sentiment, noting the growing appetite for Web3 gaming despite the current bear market in cryptocurrencies. However, the focus is shifting. Gabby Dizon from Yield Guild Games predicts that successful Web3 games in 2024 will pivot from play-to-earn models to free-to-play, aiming to attract a broader player base.
An intriguing aspect of this transformation is the global distribution of Web3 game developers. While the Asia-Pacific (APAC) region leads with 40% of the development teams, demonstrating its growing tech and digital innovation prowess, other regions contribute significantly too. North America accounts for 30%, and the Europe, Middle East, and Africa (EMEA) region holds 28%. Latin America, with a smaller but vital 2%, adds to the global diversity of Web3 gaming.
The United States stands out as the largest individual market, hosting 28% of Web3 game development teams. South Korea comes second (12%), followed by the United Kingdom (6%), Singapore (6%), and Vietnam (4%). Australia, Japan, Hong Kong, France, and Canada each contribute 3%. The rest of the world collectively makes up the remaining 28%.
Interestingly, there is an even spread of Web3 games across mobile, browser, and PC platforms. Specifically, 41% of these games are available on mobile, 40% on browsers, and 39% on PC. This spread indicates a versatile approach by developers to cater to diverse gaming preferences and hardware accessibility.
Furthermore, the industry exhibits a predominant preference for single-platform games, with 81% of Web3 games being developed for a single platform. In contrast, only 19% of the games are multi-platform, reflecting a focused approach by developers, possibly to optimize the gaming experience for specific platform capabilities.
The engine market is largely dominated by Unity and Unreal Engine. Unity, with its user-friendly interface, claims 51% of the market, while Unreal Engine, renowned for its advanced graphics capabilities, covers 44%.
While new game launches have slowed, the focus has shifted towards developing quality hits with sustainable models. The future looks promising, with big names and fresh concepts ready to redefine the gaming experience. As we step into 2024, the world eagerly awaits the next big thing in Web3 gaming.
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