Crypto games: future new triple A standards?

Massive growth in crypto-gaming – The GameFi could significantly surpass traditional AAA games, provided that companies in the sector manage to meet the main challenges they face today.

Will GameFi soon be ahead of AAA games?

According to data published in DappRadar’s BGA Games report in October, blockchain games and metaverse projects raised $1.3 billion during the last trimester.

This figure is in 48% drop compared to the second quarter of this year. Nevertheless, it represents almost the double the amount fundraising completed last year in its entirety.

Despite the crypto winter, blockchain games and metaverse projects continue to grow compared to 2021. Recently, the CEO of Skale, Jack O’Holleranhad noted that “today’s AAA game companies” could “look like peanuts” in the face of the continuous evolution of GameFi.

For clarification, Skale is a multichain network based on Ethereum (ETH) which powers web3 games, while AAA games refer to those produced by large publishers and which benefit from a relatively large budget and media coverage.

In addition to the CEO of Skale, AbsoluteReports had also spoken of an optimistic outlook for the games play-to-earn (P2E). He advanced the figure of $2.8 billion in growth between 2022 and 2028, i.e. development at a compound annual growth rate of 20.4%.

Challenges to be met, a business model to be found

Although GameFi has development potential that could allow it to surpass traditional games, companies in the sector must take up a number of challenges.

They must to improve user experience blockchain games, notably by eliminating or lowering gas costs or the complexity associated with holding and trading NFTs. For Jack O’Holleran, many efforts “around conviviality” must be deployed to massively attract users to GameFi.

Improving the user experience is not the only difficulty that companies in the sector face. They also need to find a viable business model. Today, GameFi players have the choice between play-to-earn and play-to-own (P2O).

In the play to earn gamesplayers are mainly motivated by financial rewards, in the form of non-fungible cryptocurrencies or tokens, which they can earn. The play to own games also earn these rewards, but players are looking for fun first – just like in classic games.

Play-to-own then offers additional features compared to play-to-earn, such as various rewards that gradually unlock in-game and allow a player to improve the value of an in-game asset they have earned.

The GameFi could thus record a exponential growth. It attracts more and more traditional video game giants, like Ubisoftcompanies that must evolve to avoid offering obsolete products in the long term.