Updated on January 18, 2023 09:54 AM
Web3 technology is one of the many causes for the unexpected increase in the market size of the gaming business, and its benefits will have a significant influence as it becomes more widely available around the world.
We are creating virtual worlds and investigating financial prospects that were previously thought to be just amusements and recreational pursuits. As the year comes to a close, the gaming sector has been dubbed the big-fat hen. A hen lays golden eggs, and the industry is anticipating profitable collaborations shortly.
According to the figures provided by IMARC, the worldwide gaming market is profitable. With a market value of more than 202.2 billion USD dollars, and a CAGR of 9.08% over the next two years.
One can see how the wide application of numerous technologies has permitted the development of the complete gaming ecosystem. These technologies can provide scalability, security, and stability.
However, to appreciate its potential for the game business, we must first understand the notion of Web 3.
The web's evolution is dependent on how we deploy data and engage with it in general. To illustrate, consider only one factor: the benefit of the web at three version phases. We find one benefit linked to data, as the web is simply a large sea of data flowing in every way.
The original web was like a library that provided us with information. We could go there and read the information. Then came web 2.0, which is the version we're currently using.
We can change the information and establish distinct sets of guidelines here. We used those batches of data to access the web as the software progressed. Finally, as we go toward Web 3.0, we are witnessing a shift in functionality, applicability, and authority.
Also Read: Web3 and Gaming: A Position change
People own the data they share in Web 3.0; there is no single institution that authenticates and regularises the information. In this area, data can go spontaneously from one source to another without being interrupted by any middleman. Web 3.0 also makes extensive use of hardware, such as AR/VR headsets and IoT-based peripherals.
Software applications operating under the Web 3.0 umbrella will have more upgraded capabilities and functionalities. Interestingly, one example is Metaverse, where users will be able to engage with one another in virtual worlds that they will construct, develop, and manage.
However, numerous experts have disclosed that this is only a subset of Web 3.0 apps.
The web 3.0 sector is currently one of the most profitable and fastest-growing in the world. According to the estimates in Mckinsey Technology Trends 2022, Web 3.0 has received investments totalling $110 billion.
One of the main challenges for this enormous investment has been the worldwide media and entertainment business.
There are numerous reasons why every mobile game development company is prepared to modernize its products and solutions. Let's take a look at those advantages and what Web 3.0 gaming has to offer.
Here are some Web 3.0 gaming concepts that will help to upgrade the gaming business by creating a hyper-intelligent environment.
The gaming concept makes use of blockchain technology to meet its requirements. If a game is created with this concept in mind, it allows users, developers, and artists to confirm their ownership of digital gaming assets.
Decentralized gaming removes any central authority that oversees the activities associated with such digital assets. When we talk about in-game purchases, digital exchanges, and even asset tokenization becoming decentralized, it means that there will be a less expensive and more direct route of communication between game producers and customers.
GameFi is an abbreviation for Game Finance, and it refers to a more comprehensive approach to properly managing to spend in the gaming sector. On its own, GameFi is a really simple notion.
The structure and technology created around it add to the complexity. However, the outcome of creating a fully functional virtual financial ecosystem for a gaming platform, product, and solutions remains a profitable concept.
As crypto and data mining concerns grow, game developers engage in research to make these marketplaces safe and scalable. Integrating with the blockchain enables the creation of safe, secure, and scalable systems. Currently, the most advantageous use of this integration is the ability to trade NFTs and other gaming digital assets.
Blockchain technology is a critical supporting pillar for these complex processes. It enables developers to build virtual marketplaces. These platforms can be centralized if digital currency is used, or decentralized if players use decentralized cryptocurrencies.
The utilization of modified variations of game hardware has progressed significantly. Users' demands have risen substantially, from pressing buttons with hefty fingers to maniacally beating keyboards.
As we witness advancements taking over the game production industry, we see a modern breed of gaming technology that necessitates extensive testing.
Developers will demonstrate their ability to use Web 3.0's technological capabilities and merge them with VR and AR gaming.
These will push them to provide a more immersive experience to consumers by allowing them to create their virtual avatars and personalities based on their tastes. Finally, these technologies assist the user by allowing them to customize their experience.
In general, the trick to tailor the experience is utilized to increase the individual base, and the gaming community has a large user base for unique game features such as customization. Furthermore, customization enables game producers to keep up with customers' ever-changing expectations.
Metaverse gaming is one of the most social divisions of the gaming business that has received a lot of attention recently. Since its inception, the metaverse has been a sought-after innovation, attracting the attention of numerous industry investors.
However, it appeared that gaming industry professionals were ready to reap the benefits of Metaverse by incorporating it into the final step of the game creation process. The only challenge was maintaining a network where information could be shared and multidimensionally to make developers' jobs easier.
Web 3.0 is the ultimate answer, a platform where users can collect content in any way and the other user benefits in the end.
The last two years in web3 have been a cacophony of bad news rattling through 2022, with a booming bull market in 2021 and a cacophony of bad news rattling through 2022.
By 2023, we expect a few remaining tremors from the FTX crash to ricochet through the market, but the damage will be mostly done. The crypto industry has plummeted in the last year, with bad actors exposed and weak enterprises failing.
In 2023, web2 game studios will continue to push deeper into web3 and enter what we call "Stage 4" of web3 gaming acceptance.
Stage 1: Monitoring and internal experimentation (for example, web3 gaming studios accepted into Ubisoft's Entrepreneurs Lab accelerator program).
Stage 2: Invest in web3 gaming startups to gain a better understanding of how web3 improves web2 gameplay and the underlying technology (for example, Ubisoft and Take-Two Interactive's investment in Horizon Blockchain Games).
Stage 3: Web2 game studios establish web3 gaming subsidiaries, frequently in collaboration with crypto-native corporations and investors (we can't publicly reveal any of them, but we observed quite a number in 2022).
Stage 4: Established web2 game publishers will include web3 aspects directly into their web2 games, notably NFTs and crypto payments (not via stand-alone subsidiaries).
The change in nomenclature from "NFTs" to "digital collectables" could allow traditional game companies to implement NFTs directly into games with minimal gamer opposition, much as the change in language from "crypto" to "web3" brought in more non-crypto native persons.
While we expect traditional game developers to approach with caution (recall that Ubisoft named the Ghost Recon NFTs "Digits" and still faced controversy), the adoption of "digital collectables" in games with matching secondary liquidity will not take the ten years that Free-to-Play did.
We're convinced that 2023 will be remembered as one of the pivotal years that paved the way for web3-enhanced games to join the mainstream.
Savvy Games Group ("SGG") stated in late September 2022 that it will invest $38 billion in games through 2030, to bring Saudi Arabia to the forefront of the global gaming and esports ecosystem.
SGG is backed by Saudi Arabia's Public Investment Fund ("PIF"), which is expected to manage $500 billion and will invest $3 billion in Activision Blizzard, Electronic Arts, and Take-Two Interactive by 2021.
The PIF's grant to SGG is the largest in its 50-year history, demonstrating Saudi Arabia's commitment to game development. This is not surprising given that 89% of the Saudi population presently plays video games, the highest per capita rate in the world.
SGG previously bought large stakes in Nintendo, Capcom, Nexon, and Embracer Group, and with the additional $38 billion, SGG intends to develop 250 game firms in Saudi Arabia, creating 39k employment and increasing the gaming industry's GDP contribution to $13.3 billion by 2030.
Overall, SGG's investment in gaming places them in the same league as gaming behemoths Tencent, Sony, Nintendo, Microsoft, and NetEase.
So, how can SGG differentiate itself from these other gaming monsters? We believe that SGG will be more than just a collection of miscellaneous web2 gaming elements. Rather, we anticipate SGG will be far more deliberate in putting its cash to work by concentrating its efforts in an area where it can become "the player" - web3 gaming.
SGG has a once-in-a-lifetime opportunity to produce much-needed new value and innovation in gaming by carefully developing a web3 gaming environment.
If SGG continues to hire effectively and determines that it wants to be the leader in web3 gaming, it will have a much greater influence on the future of gaming through web3-enabled games than many expect.
Web 3.0 gaming is thought to be a very functional field. A domain in which the most viable use of data is to advance existing technologies such as blockchain, metaverse, and AI/ML.
There are survey professionals who have acquired and analyzed significant amounts of data, providing useful insights into general Web 3.0 gaming awareness.
The results were extremely startling, but also understandable. According to the Coda labs Web 3.0 player research, 52% of worldwide gamers are unaware of Web 3.0 gaming. Surprisingly, 41% of average consumers have no idea how Web 3.0 gaming works.
The majority of these customers were willing to accept Web 3.0 gaming because it was a lucrative source of income. However, many hidden Web 3.0 functions have yet to be discovered.
What exactly does this mean? Will these ignorant claims about the undeniable promise of Web 3.0 gaming act as a self-destruct switch?
What exactly is Web3 in gaming?
Web3 gaming is a decentralized gaming process in which the actions of a gaming ecosystem or a game platform, specifically gaming asset ownership and decision-making in all elements of gaming, are delegated away from any central authority.
Is Web3 similar to playing Minecraft?
Web3 is a newer version of the internet in which everything is more connected and decentralized, much like the existing Minecraft worlds.
What features must a Web3 game have?
Web3 gaming relies heavily on the Metaverse, NFTs, and even Gaming DAOs.
What exactly is Web3 technology?
The distinction between Web 2.0 and 3.0 is that Web 3.0 is more focused on the use of technologies such as machine learning and AI to give appropriate material for each user rather than just the content provided by other end users.
Is Web3 synonymous with cryptocurrency?
Web3 is the moniker given by some technologists to the concept of a new type of internet service developed utilizing decentralized blockchains — the shared ledger systems used by cryptocurrencies such as Bitcoin and Ether.
What is the difference between Web3 and crypto?
Crypto is not the same as web3, but rather a subcategory of web3 technologies that relate to any blockchain-based technology. Web3 is an abbreviation for web 3.0, which is a suggested progression of the "web 2.0" era.