State of Web3 Gaming 2023 report reveals web3 gaming industry trends

According to the report, the Asia-Pacific (APAC) region leads web3 game development by hosting 40 percent of the game developers

By Shashank Bhardwaj

Published: Nov 17, 2023 06:21:41 PM IST

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Game7, a web3-focused gaming community, recently published a report titled “State of Web3 Gaming 2023,” providing a view of the web3 gaming industry’s current landscape.

The report provides an in-depth analysis of the web3 gaming industry, revealing essential data, trends, and insights for industry professionals. It was prepared after examining data from over 1,900 blockchain games, 1,000 funding rounds, and 170 blockchain ecosystems.

George Isichos, a Core Contributor at Game7, who led the report, said, “This report is our first attempt to index and better understand the broader web3 gaming ecosystem in a credibly neutral manner, putting core game development pains ahead of tokens and speculation.”

The report reveals the Asia-Pacific (APAC) region as a frontrunner in web3 game development, hosting 40 percent of web3 game developers, followed by North America at 30 percent.

The USA stands out as the largest market for web3 game developers (30 percent), followed by South Korea (12 percent), the UK (6 percent), Singapore (6 percent), Vietnam (4 percent), and Australia (4 percent).

The report highlights the evolution of web3 gaming investments following the 2022 market correction slowdown. By the third quarter of 2023, investments in blockchain gaming reached $1.5 billion, with over $800 million going specifically to web3 gaming.

US-based web3 gaming projects secured over $4 billion with France, Canada, Singapore, and Hong Kong receiving funding in the range of $0.66 to $0.9 billion.

Despite unfavourable market conditions, blockchains targeting the gaming sector grew. In 2023, more than 81 new blockchain networks targeting gaming were announced, a 40 percent increase from the previous year.

The report underscored how distribution remains a significant challenge for the web3 gaming stack. With over half of the web3 games inaccessible on mainstream distribution platforms, they rely on direct channels or web3 native platforms for distribution.

However, platforms like the Epic Games store have shown increasing support for web3 games, from listing only two games in June 2022 to featuring 69 games by October 2023.

The report also revealed considerable migration of web3 games across different networks, sparking competition among blockchains for web3 gaming. Noteworthy choices for web3 gaming in 2023, as per the report, were Polygon, Immutable, and Arbitrum.

Web3 gaming has the potential to revolutionise the gaming industry. By offering players new monetization opportunities, decentralised governance, increased interoperability, and improved user experiences, web3 gaming can create a more sustainable, equitable, and enjoyable gaming experience for everyone.

The writer is the founder at yMedia. He ventured into crypto in 2013 and is an ETH maximalist. Twitter: @bhardwajshash