Centralized To Decentralized: How Major Web2 Gaming Companies are Embracing Web3 Technology
Hello Seedify Community,
In 2021 we saw numerous reputable Web2 gaming companies showing interest in blockchain tech, NFTs and crypto. However, 2022 saw the beginning of a bear market, slowing down operations and putting some plans on hold. Now in 2023, we are starting to see a change in the market sentiment following a positive start to the year, with Web3 gaming and Metaverse projects becoming some of the most exciting prospects.
Web3 gaming is an interesting proposition as it appeals to a broad audience, such as traditional and non-traditional gamers, gaming companies, and Web2 and Web3 investors alike. In addition, it seems that Web2 gaming companies are beginning to see the benefits of what Web3 can bring to gaming. This has led to us seeing major Web2 gaming companies, including Ubisoft, Square Enix and Atari, announce they would be looking to enter the space by forging partnerships with Web3 projects.
According to a report from Metaverse Post, Web3 startups raised over $7B during a bear market in 2022, with gaming taking the lion’s share of $4.5B (62%). Metaverse projects also received a healthy $1.8B collectively, with the creators of the famous Bored Ape Yacht Club NFT collection Yuga Labs raising an incredible $450M to launch their metaverse, “Otherside”.
Companies Investing In Web3 Gaming
There are mixed feelings about Web3 gaming from Web2 gaming companies. Some for, some unsure, whereas others, such as Valve, were not convinced and decided not to place blockchain games on their gaming platform, Steam, for now
Epic Games, Steam’s main competitor, responded to the news by announcing their views on Web3 gaming, with their CEO Tim Sweeny asking his Twitter followers to “make their own decisions” on whether engaging Web3 was right for them on an individual level. Epic Games’ platform now features Gala Games’ Grit and Mythical Games’ Blankos Block Party.
Steam’s stand against Web3 gaming hasn’t stopped other major gaming companies from entering the Web3 space. In March 2022, Ubisoft was one of the lead investors in a $12M raise from Cross The Ages, a free-to-play NFT digital card game. Ubisoft had also previously launched a mobile app, Quartz, where users could buy in-game cosmetics for their title Ghost Recon Breakpoint as NFTs. However, the renowned game published eventually decided to “quietly shut down” the marketplace in April 2022.
Animoca Brands, one of the largest traditional and Web3 gaming companies, has already invested in several Web3 startups, including The Sandbox, Crazy Kings, and Crazy Defense Heroes. In addition, Animoca Brands is the leader in metaverse-focused startups. The Hong Kong-based company invested in 13 projects throughout 2022 and announced plans for a $1 billion metaverse fund.
Other major game developers joining Web3 include Atari, who is working on a series of non-fungible tokens (NFTs) for its new gaming platform, Atari Metaverse and Square Enix, the company behind the gaming series Final Fantasy, who announced their plans to allow for NFTs and their token system to scale across numerous games.
At Seedify, our team has also shown its commitment to Web3 gaming and metaverse with the Seedworld announcement, Seedify’s user-generated content (UGC) based gaming metaverse that will have a real-world economy. Users will be able to create their own social and gaming experiences in Seedworld using accessible tools and products. Essentially, Seedworld will be a metaverse built by its own users.
Benefits of Web3 for Gaming Companies
This integration of Web3 will not only introduce new elements to gameplay but also increase player engagement and provide new revenue streams for both creators and players. Some of these benefits include:
- In-game Ownership of Assets: Users are able to own in-game assets and collectables, giving them full control of the assets in a decentralized system.
- In-game Economies — Web3 also enables gaming companies to create unique in-game economies where players can build earning mechanisms into their metaverse LANDS or rent out virtual property in the metaverse.
- Player Engagement — Web3 technology enables players to engage more deeply with their games. For example, players can contribute to the game development process by providing feedback or suggestions to the game developers, through DAO mechanisms as well. Moreover, Web3 creates a deeper connection between games and players which is unachievable in traditional gaming.
- Monetization — Web3 enables players to monetize their gameplay in new ways. It allows players to earn cryptocurrency by participating in game tournaments or selling their in-game assets. This can create new revenue streams for game developers to monetize their games.
Future of Web3 Gaming
The power of incorporating Web3 into gaming is immense and will change gaming forever. From all new experiences not possible in Web2 gaming to travelling across multiple games with a single character, weapons, and armour, the possibilities for Web3 gaming are limitless.
Some of the potential possibilities available in Web3 gaming include the following:
- Gaming Experiences — Players will be able to participate in entirely new gaming experiences and have complete control over their LANDS within other games. Web3 enables players to build their own games within other games using user-generated content (UGC) and retain full ownership over their creations. This lends itself to the creation of sub-DAOS and economies with earning mechanisms, digital assets and much more, all controlled by the players.
- Interoperability — Web3 technology creates interoperability between different gaming platforms and metaverses. This means players can use their in-game assets across other worlds, creating a seamless and interconnected gaming experience where players can use their in-game assets in new and creative ways.
- DAO Governance — Players will be able to vote on development decisions, revenue distribution and much more through token ownership using DAO governance.
- Mobile Web3 Gaming — A majority of Web3 games are focused on desktop games, some requiring a lot of power to run. When Web3 games shift towards mobile gaming, they will open themselves up to 50%+ of 3 billion gamers who are playing on their phones.
- Initial Game Offerings (IGOs) — IGOs will play a significant role in players and developers moving over to Web3 gaming. IGOs allow players to support new games coming to market, supporting the development and creating a mutually beneficial agreement (potentially financially) between players and developers.
If you are excited about the future of Web3 gaming and would like to participate in our IGOs, head over to The Seedify Launchpad for information on the upcoming projects.
About Seedify
Seedify is a Blockchain Gaming and Metaverse incubator and launchpad, as well as an NFT launchpad empowering innovators and project developers with access to funding, community building, marketing, and high calibre partnership network, with a full support system to help bring premier games, NFTs and Metaverse projects to our community. Seedify will also start AI-related project IDOs starting in 2023.
To learn more about Seedify and Seedworld (Seedify’s UGC-based Gaming Metaverse), please refer to the following links:
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