Problems

What Are The Challenges That Plague Web3gaming Industry?

The plethora of problems associated with Web3 gaming are quite filled to the brim. While millions of users are actively participating in Web3 games, its underlying problems are undeniable and quite inevitable.

Currently, the major challenges web3gaming space face are 3 pronged.

• Gamers Liquidity — At present, the most significant yet underestimated challenge that the industry faces is lack of gamers itself. Various reasons contribute to this problem ranging from lack of easy to use UI & complexities of web3 to poor outreach to gamers from web 2.0 . Some might argue against it but the fact is that still a large number of audiences love to Play games the traditional way i.e. on consoles (PS or Xbox) or on mobile phones without the need to move to new frontiers like web3gaming. The incentives & motivation are too small for people to change their preferences, which mostly are to have a joyful time while avoiding any kind of mental hustle.

However, It is not just a ‘Web3 gaming’ problem but a Web3 problem. New users find the entire ecosystem, including the applications and the community to be overwhelming.

• Limited Monetization Opportunities — In their current form, most of the games that are working to build an ecosystem lack clarity on providing an economically sustainable model for its users. On the face of it, play-2-earn (P2E) gamers now have a solid way to monetize their time. However, the mechanics of most P2E games aren’t very well thought out that would make Web3 adoption a little problematic. In the present spectrum of time, P2E gaming is more of an ‘invest and earn’ thing than an ‘earn’ thing. Players have to buy or rent an NFT, and they can earn good money only if the other players also spend enough money. NFTs, by design are unique, and hence not fit for high volume and high-frequency trading. Their unique design further mandates them to be listed individually on a marketplace — a very time-consuming process that leads to a lack of liquidity that can make trading very frustrating and tiresome. Hence, this model is a little too far from being sustainable as the players’ earnings are impacted by the number of new users entering the ecosystem and market fluctuations.

• Fragmented Gaming Ecosystem — Throughout the web3 gaming space if there’s one obvious trait for multiple projects is the fact that most focus on too many things at same time; moreover while they build a user appealing app/product the most overlooked factor is the ease of access. Most projects have a UI that’s not very user friendly because of the web3 element in the game. If there are multiple features in a game most times they’re distributed and have to be accessed separately. For example, if you have a game that consists of various components in its ecosystem like DAO, chatroom, in-app purchase items to name a few. Usually these features have to be accessed on not a single but multiple user interfaces, which in return proves to be a major deterrent.