TL:DR
- Web 3.0 gaming is still in its early stages in India, with much work needing to be done to transition to it.
- The shift to Web 3.0 gaming is driven by a desire to shift value from publishers to gamers and build a long-term relationship with the gaming ecosystem.
- The gaming industry is expected to become a trillion-dollar economy in the near future, but investors should be aware that the transition to Web 3.0 gaming will be gradual, with considerable challenges still to be overcome.
Web 3.0 gaming will be gradual, as a considerable amount of work needs to be done.
In 2021, Web 3.0 emerged as a popular technology for fantasy sports, but the experts feel that there is still a lot of hype surrounding it. At a panel discussion on Gaming 2.0 and shifting to Web3 and blockchain gaming at Web3 summit, Rohit Jagasia, Founder & CEO of Reventant Esports, stated that “Web from an Esports point of view is still to grow in India and throughout the world because I think the audiences that actually play competitive gaming still have to be educated about Metamask and most of the wallets, how to link them and how to use them. But for now, I think for Esports teams and content creators who are a part of the whole Esports ecosystem they are more like an enabler for Web 3.0, and I think that shift will come soon.”
The good news is that traditional gaming companies such as EA, Ubisoft, and Spec games have already started making a move towards Web 3.0 gaming. Jai Shah, Co-founder of Orangutan, stated that “the lucrative part for Web 3.0 and the link between Gaming 2.0 and Web 3.0 would be the community. Also, what’s great about Web 3.0 and what’s going to be lucrative is the Play-to-Earn model as and when gamers can stick to a particular game or become loyal to a particular game you know the trading of the skins and different things that Web 3.0 can enable which currently we call them in-game assets but we don’t treat them like one. So I think Web 3.0 is going to be an enabler, something that will help boost the whole ecosystem all together.”
While a lot of things need to be in place to fully realize the actual potential of Web 3.0 gaming, it will be interesting to know what is driving this shift and the other dynamics at play. Parth Chadha, Co-founder of Stan, explained that “the shift of value from publishers or guys building the games to gamers is the key aspect which is driving Web 3.0 and Blockchain. It has to shift from the point where only a few stakeholders in the ecosystem are capturing the value to the actual audience consuming the gaming content. This is something which Web 3.0 is sort of promising, and that is why everybody is so excited about Blockchain in gaming.”
However, Web 3.0 gaming is not without its challenges. Elangovan, Co-founder and COO of Guardian Link, stated that “user acquisition for Blockchain gaming is a huge challenge.” Dhiman, CEO of MetaStudios-Metaverse and Gaming, believes that “Triple-A games are not going to enter this ecosystem unless the user base increases, and that won’t increase unless the games become fun to play, and hence the whole shift that we are talking about from Web 2.0 to Web 3.0 has to be gradual.”
Despite these challenges, there is enormous potential in Web 3.0 gaming if done right. Inamedinova, Founder & CEO of LKI Consulting, believes that “gaming has enormous potential if it is done right.” She suggests that developers should not build hastily in Web 3.0 and explore all possibilities.
Web 3.0 is the next evolution of the internet, which aims to provide a decentralized, open, and user-centric experience. While Web 3.0 has already started to make waves in various industries, including finance and supply chain, it is yet to gain significant traction in the gaming industry in India. The gaming industry has grown tremendously in India, thanks to the pandemic, which boosted the gaming market to a $2.8 billion industry in 2022, with an expected growth to $5 billion by 2025. Despite this growth, Web 3.0 gaming is still in its nascent stages in India, and a lot of work needs to be done to transition to it.
At a panel discussion on Gaming 2.0 and shifting to Web3 and blockchain gaming at the Web3 summit, experts shared their views on Web 3.0 gaming. Rohit Jagasia, the Founder & CEO of Reventant Esports, noted that audiences that play competitive gaming still need to be educated about Metamask and wallets’ usage. He added that for now, esports teams and content creators who are part of the ecosystem are more like enablers for Web 3.0, and the shift to Web 3.0 will come soon. While Web 3.0 has emerged as a popular technology for fantasy sports in 2021, experts believe it is yet to grow in India.
What gamers may want
There are several dynamics at play in the shift towards Web 3.0 gaming. Parth Chadha, the Co-founder of Stan, noted that the shift of value from publishers or guys building the games to gamers is the key aspect that is driving the shift to Web 3.0 and blockchain. Kapil Dhiman, the CEO of MetaStudios-Metaverse and Gaming, believes that gamers want to own their time and get value for the time they are inputting in the game. Shivam Rao, the Co-founder and Chief Operating Officer of Trinity Gaming, believes that there should be a specific focus towards community-building as that is what is going to build a long-term relationship with the whole gaming ecosystem.
Despite the traditional gaming companies moving towards Web 3.0 gaming, it is not without its challenges. Elangovan noted that user acquisition for blockchain gaming is a huge challenge, and AI technology is another challenge for web-free games. Juliet Su, the Fund Partner and Ecosystem Lead of New Tribe Capital, added that at the end of the day, gaming should be fun and engaging, and user engagement or user base is so low currently. Su believes that the shift from Web 2.0 to Web 3.0 has to be gradual, with games built not with a mindset of making money or integrating it with blockchain. Integration with blockchain and NFTs has to be a subset, and the core of building a game should be to build a fun and engaging game with multiple ways a to reward players.
Investment Opportunities in Web 3.0 Gaming
As the world moves towards Web 3.0, the gaming industry is expected to undergo a sea change. With the advent of blockchain technology, in-game assets can now be treated as NFTs, which can be traded, rented, or bought by players. This opens up a new market for in-game assets, and with the growth of Web 3.0 gaming, the gaming industry is expected to become a trillion-dollar economy in the near future.
Investors looking for opportunities in the gaming industry should pay attention to companies that are making a move towards Web 3.0 gaming. Traditional gaming companies such as EA, Ubisoft, and Spec games have already started to explore the sector. However, startups such as Revenant Esports and Orangutan are also making a significant impact in the industry.
Investors looking for opportunities in Web 3.0 gaming should also consider investing in companies that are building gaming communities. Community building is an essential aspect of gaming, and companies such as Rooter are playing a crucial role in building gaming communities in India. Investors should also look for companies that are building games that have a strong storyline and are engaging for gamers.
Investors should keep in mind that the transition to Web 3.0 gaming will be gradual, and considerable work needs to be done before the gaming industry can fully realize the potential of Web 3.0. User acquisition for blockchain gaming is still a significant challenge, and games need to be built with a mindset of making them fun and engaging for players. Companies that can successfully build a loyal user base are likely to succeed in the Web 3.0 gaming industry.
Phenomenal growth
The gaming industry in India has seen phenomenal growth in recent years, and with the advent of Web 3.0, the industry is expected to undergo a sea change. Web 3.0 gaming has enormous potential, and the shift towards Web 3.0 gaming is already underway, with traditional gaming companies such as EA and Ubisoft making a move toward the sector.
However, the transition to Web 3.0 gaming will be gradual, and considerable work needs to be done before the gaming industry can fully realize the potential of Web 3.0. Investors looking for opportunities in the gaming industry should pay attention to companies that are making a move towards Web 3.0 gaming and building gaming communities. The gaming industry is expected to become a trillion-dollar economy in the near future, and investors who can identify the right companies are likely to reap significant rewards.
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