The following is a guest post from Shiti Manghani, the COO at STEPN.
In this ever-evolving digital world, we don’t sit in front of our laptops and marvel at how electricity is an incredible technology. We often take the seamless operation of our technologies for granted. When you read this article, you’re not thinking about the server it’s hosted on or the way HTML structures it. We have become accustomed to these wonders and rarely reflect the underlying technology that drives our daily lives.
Most of us are content with technology that fades seamlessly into the background. This perspective also extends to the realm of gaming. Gamers are mainly concerned with functionality and ease of use.
The gaming community is skeptical of mainstream gaming companies trying to integrate aspects of Web3. EA was criticized in November 2021 for discussing their Web3 intentions, and other high-profile gaming companies like Microsoft, Valve, and Epic Games are staying completely out of the fray, refusing to embrace NFTs in games.
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If Web3 gaming is to be successful, we need to bridge the gap and win over the Web2 audience. NFTs lack intrinsic value for many gamers, and not everyone values digital ownership. Many gaming studios attempt to integrate NFTs superficially, resulting in NFTs that exist in name only, giving players minimal control in secondary markets. This often feels like a mere dressing down of microtransactions, driven by boards of directors who capitalize on the trend without understanding the unique essence of blockchain.
We need to stop shouting about the technical structures of Web3 gaming and focus our conversations on improving the user experience. Ultimately, users are less concerned about whether a game runs on-chain or off-chain; what really matters is that the games are built to be easy to use and fun to play. Be it gaming or Web3, the primary concern of users is the experience they encounter while navigating a particular platform.
Whether it’s purchasing their first NFT or setting up a wallet, the catalyst for their engagement is the presence of a well-designed, easy-to-use application that facilitates actions seamlessly.
When users are confronted with a series of poorly designed, buggy apps that don’t live up to the quality they’re used to, they’re more likely to reject the whole concept altogether. Finding balance in Web3 gaming is essential in this area; if a developer decides to include NFTs, they should be used to enhance the user experience without overwhelming the core of the game.
Financialization is not a dirty word
Overall, the ‘financialization’ of games isn’t a bad thing. Strangely enough, financialization is often portrayed negatively when we talk about Web3 or crypto games. It is often forgotten that the film and music industries together are still unable to match the enormous revenues of the gaming industry. In fact, financialization is an inherent part of gaming. Recent industry statistics and forecasts indicate an astonishing increase in sales $282 billion in 2023 to as much as $666 billion in 2030. Much of the gaming industry consists of a secondary market for in-game assets that exists in a legal gray area, often on third-party sites.
While game developers have made some legitimate attempts to host their own in-game secondary marketplaces, most publishers refrain from doing so. This is mainly due to higher margins on primary sales and to incentivize users to monetize the built-in game design and progression.
The lack of legitimate secondary trading options leads to a large gray market, from the dark web to non-resident platforms. With Blockchain, we provide users with a legitimate way to trade assets, instead of going to the dark corners of the internet.
Focus on community
Another crucial factor to consider is the role of strategic gameplay, rather than relying solely on ‘luck-based’ mechanics. This element will certainly play a crucial role in captivating Web2 audiences who invest their money, valuable time and energy. When users spend their time and cognitive efforts determining gameplay and forming vibrant communities to discuss resource management, NFTs, assets, and tactical moves, a true gaming culture begins to flourish.
The combination of control, participation and passion that players exhibit determines the trajectory of these projects. A strong community is a cornerstone for a game’s long-term sustainability and growth.
To attract the gaming audience, we need to address the key factors that bind users to traditional games; rich gameplay and incentives. While the financial aspect is undeniably central to the Web3 space, it is equally essential to increase the richness of the gameplay with better UI and UX so that it naturally becomes the right game for them to try out.
There will always be purists who are hesitant to embrace Web3 products, perhaps the late adopters, but there will be gamers who appreciate rich gameplay and now have a legitimate platform to trade and use their gaming NFTs. These enthusiasts will likely be the first champions of truly enjoyable and engaging Web3 games.
As an industry, we need to build great products and not turn off our audience. The Web3 infrastructure isn’t there yet to support a massive ecosystem, so instead let’s build great games that people love, while using the components of Web3 that create a fair system of game ownership and trading enable items.
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