Web3 games remain at the forefront of on-chain activity, constituting 34% of decentralized application (Dapp) engagement in the previous year, as reported by DappRadar.
The report further indicates that Web3 games attracted a user base of 1.1 million active daily participants throughout 2023. Despite this notable achievement, these games encounter challenges in drawing in both traditional and Web3 gamers, as highlighted in the Blockchain Game Alliance’s (BGA) 2023 State of the Industry Report.
The BGA report identifies onboarding and accessibility as the primary hurdles faced by blockchain games, echoing concerns from the previous year. According to the report, 55.1% of respondents identified onboarding as a significant challenge in 2023, an increase from the previous year’s 51%.
Dean Takahashi, Lead Writer for GamesBeat at VentureBeat, acknowledges the higher friction experienced by Web3 games compared to Web2 counterparts. Takahashi emphasizes the advantage that Web2 games hold due to years of user familiarity, especially in terms of in-app purchases through app stores.
Moreover, Takahashi notes that Web3 games face limitations in visibility due to app store regulations. While some Web3 games have managed to penetrate app stores through a hybrid Web2/Web3 model, restrictions persist, particularly concerning in-app purchase transactions.
The challenges extend to monetization barriers, including limitations on cryptocurrency payments, which complicates the process for Web3 players, especially on mobile platforms.
Despite these obstacles, Takahashi believes that the key to advancing Web3 games lies in enhancing discoverability among the target audience. Similarly, the BGA’s report underscores the importance of user acquisition and retention for the growth of these games.
Anton Umnov, CEO and Co-Founder of Helika, emphasizes the significance of creating desirable games to drive blockchain game adoption. Umnov introduces Helika Accelerate, a platform designed to provide gaming studios with specialized engagement data to optimize player experience and increase lifetime value (LTV).
Although data analytics pose challenges for Web3 games, Umnov highlights the potential of blockchain technology in enabling decentralized data collection. Upland, a blockchain-based game, collects in-game data to optimize player experience, focusing on behavior rather than personal information.
Moreover, the incorporation of zero-knowledge technology and the utilization of artificial intelligence (AI) are proposed strategies to address user privacy concerns and improve user acquisition in Web3 games. AI-driven analytics can offer insights into user behavior, leading to enhanced personalization and engagement.
In summary, while Web3 games face obstacles in user acquisition and data analytics, advancements in technology and strategies such as decentralized data collection and AI-driven analytics offer promising avenues for growth and improvement.