A recent report from the Blockchain Game Alliance (BGA) has shed light on the growing acceptance of play-to-earn games, signaling a move towards mainstream adoption. However, despite the positive momentum, the industry still faces several challenges that need to be addressed.
The State of the Industry report, which surveyed close to 700 respondents from the play-to-earn space, highlighted the increasing popularity of blockchain-based games. With a three-fold increase in respondents compared to the previous year, the report indicates that these games are on the cusp of reaching mainstream levels of adoption. The number of active monthly users for play-to-earn games has reached an all-time high, showcasing the industry’s growth trajectory.
One key factor contributing to the success of play-to-earn games is the focus on improving user experience. The report reveals that onboarding friction rates have significantly decreased, making it easier for users to engage with these games. In the past, play-to-earn games required technical expertise to navigate complex Web3 protocols. However, game developers have made concerted efforts to enhance the user interface and make the gameplay experience more intuitive, akin to traditional games.
Sebastian Borget, President of the BGA, predicts that this trend will continue into 2025, with more ecosystem players investing in improving UX and UI elements. Additionally, the report highlights the growing interest from traditional game publishers like Sony and Square Enix, who are exploring opportunities in the play-to-earn space through blockchain solutions.
The allure of play-to-earn gaming lies in the prospect of in-game asset ownership and the potential for players to earn rewards and revenue. Despite the industry’s growing appeal, respondents cited onboarding challenges and clunky user experiences as significant hurdles. Concerns around bots and misconceptions about Ponzi schemes also pose obstacles to wider adoption.
In a bid to advance play-to-earn gaming in Japan, a group of leading video game publishers including Sega, Square Enix, and Konami have joined forces under the Japan Cryptocurrency Business Association (JCBA). This new alliance, supported by virtual currency exchange Coincheck and other Web3 companies, aims to drive innovation in the Japanese gaming industry.
With the backing of prominent law firms, the alliance will focus on addressing legal and regulatory issues related to Web3 gaming, including accounting and taxation requirements. The subcommittee, led by Coincheck’s CEO Tomoyuki Isaka and Square Enix’s CEO Keisuke Hata, will explore the integration of non-fungible tokens (NFTs) in gaming and seek to develop seamless blockchain solutions for game publishers.
As global interest in Web3 gaming continues to rise, fueled by improved user interfaces and revenue opportunities, the play-to-earn industry is poised for further growth and innovation. Stay tuned for more updates on the evolving landscape of blockchain-based gaming.