Web3 games: taking advantage of opportunities and overcoming challenges

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Web3 games offer brand new developer opportunities and unique challenges. In this VB on-demand event, get an inside look at the world of Web3 gaming, from what Web3 really means and how it works, to opportunities for growth, potential roadblocks and more.

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With blockchain and the idea of ​​asset ownership ingrained in its DNA, Web3 opens up a deep new layer of player engagement and developer opportunities. Playing to win becomes another style of play, when users consider the potential return on their playtime. Purchasable assets, like a more powerful weapon or clothing for an avatar, become so much more important to the player they actually belong to him rather than the developer. And it all becomes another revenue stream for game developers themselves, says Alex Yip, senior solutions architect at AppsFlyer.

However, there is a learning curve: the complexity of the technology itself, the new ownership paradigm, and the impact on the player-developer relationship all pose challenges for developers starting to tackle to this Web3 space.

“Growth opportunities make Web3 an attractive new market,” says Yip. "Developers who solve these challenges now become leaders in the field, positioning themselves ahead of the pack."

Developer Opportunities Now

One of the coolest parts of Web3 is the added layer of ownership and identity, says Yip: actors taking the opportunity to design how they present themselves to the world. For example, the huge number of players in Web2 games who design their weapons and dress up their avatars to signal their identity.

“This level of ownership, with the ability for users to buy and sell, will introduce a collectible side to the business,” Yip says. "And it's a whole new revenue stream for developers, because every time these NFTs change hands, developers get a cut."

Instead of selling assets and getting a lump sum, those assets suddenly become a permanent source of royalties. Investors see this as an opportunity for them to completely transform the monetization model, Yip says. There are many opportunities to rethink how these revenue streams and NFTs can change the way developers make a profit.

The other aspect is the transparency that the decentralized blockchain brings, making transactions visible. Players can monitor the economy, see how the community is engaging, and see how the game is growing through its transactions.

“Community members feel like they own part of the game, and that level of engagement is totally unique,” ​​he says.

The challenges of Web3 experiences

Web3 technology is new enough that best practices are still being formulated as developers jump into the breach, learn new coding languages ​​and a whole new business model, while looking for ways to bridge the gap between Web2 and Web3 projects.

Some developers are going the app and web browser route, experimenting with how and where to integrate Tokenomics. This is an entirely new and complex facet of game development, both in terms of player management and player behavior, and grappling with the technological side.

In play-to-earn games where users are looking for ways to profit, it is inevitable that some users are looking for ways to play the game. The mechanics behind the game are crucial in handling this factor and are also incredibly difficult. If you generate coins, are they inflationary or deflationary, and what is the impact of generating new coins on the market? Are your NFTs and coins interoperable between different games and different protocols?

"There are so many layers to consider, and it's a whole new world of finance and commerce that needs to be considered," says Yip.

User Acquisition in Web3

Community building has become an essential initial step in user acquisition for Web3 games, generating interest sometimes long before a single line of code has been committed on the developer side .

"Some of the new Web3 projects that really took off started on social media," he says. "And then your users have a lot of different tactics to grow those communities without you spending a dollar to get started."

But it's not just about discussions between enthusiastic players. Many of these potential players arrive with the hope that they will have a voice in the development of the project. Giving your audience a sense of belonging right from the start is a powerful way to turn early...