Blockchain Gaming Boom Built on Stronger Base

Mythical Games’ VP of Blockchain Tech, Cameron Thacker, said he believes the current interest in blockchain gaming is more sustainable than the last cycle. He attributes this to a shift in focus, with projects now prioritizing “engaging experiences over frothy marketing and questionable tokenomics.”

Gaming Giants Boost Blockchain Gaming Industry

In an interview with Bitcoin.com News, Thacker cited the growing prevalence of layer-2 (L2) solutions, which better equip blockchain networks to handle user demands, as another reason interest in blockchain games is one the rise again. He also highlighted the entry of traditional gaming giants like Bandai Namco, Konami, and Ubisoft as a positive for the industry, as they bring expertise and resources.

Thacker nevertheless acknowledged that regulation or the lack thereof pose challenges. He argued that while uncertainty can slow down innovation clearer regulations can potentially bolster confidence in legitimate projects. However, he expressed concern that compliance costs could become a “barrier to entry for smaller studios.”

Meanwhile, when asked about the prospects for blockchain gaming and the Web3 industry in the next five years, Thacker predicted greater adoption and more involvement from mainstream gaming companies. He also explained why investments in Web3 gaming are increasing.

Below are the Mythical Games VP’s answers to all the questions sent.

Bitcoin.com News (BCN): The Web3 gaming business has seen substantial expansion and investment in recent years. Data from Dappradar shows that investments in Web3 gaming hit $1.1 billion in Q2 2024, marking the best quarter since Q3 2022. It reflects the resurgence of blockchain gaming since the 2021-2022 bear market when the sector collapsed following a season of unprecedented growth and awareness. What factors do you think are responsible for this growth and expansion?

Cameron Thacker (CT): The recent growth in Web3 gaming has many drivers, most notably the general maturation of blockchain technology and with it improved scalability, greater public awareness and understanding, etc. The quality of Web3 games has also markedly improved, with more focus on gameplay rather than tokenomics, something that helps to attract more Web2 gamers rather than profit-driven speculators. We’re seeing more institutional interest and not just post Bitcoin ETF either, though that has certainly accelerated the momentum: the trajectory of the overall crypto market has undoubtedly renewed interest in many Web3 projects including games.

BCN: The surge in interest across the blockchain gaming industry is reflected in the prices of several gaming projects, especially the newly launched tokens like MYTH. When this happened between 2020 and 2021, most people thought it was because of the novelty of the industry, but a similar trend is developing a few years later. Could you explain to our readers what you think is the reason behind the current surge among some blockchain gaming-related cryptocurrencies?

CT: I believe it stems from a combination of improved fundamentals and market dynamics. Many forward-looking projects used the bear market as an opportunity to refine their products and economics in readiness for the next bull run. As the crypto market has rebounded we’ve seen speculative capital flow back into gaming tokens, particularly those with real utility within functioning game ecosystems. The strategic partnerships that blockchain gaming studios have also served to boost credibility and expand their potential user bases.

BCN: Many crypto users remain skeptical of the blockchain gaming and non-fungible token (NFT) sector because of their experiences with the technology’s hype cycles. After a surge in market value followed by a significant crash, some investors are wary of renewed enthusiasm. Do you think the current resurgence of hype and awareness is sustainable? Explain your reasoning.

CT: I believe the current resurgence in blockchain gaming has more sustainable foundations than the previous hype cycle, but I’d still recommend caution. Not to put too fine a point on it, but we’re seeing a much stronger focus on gameplay now as projects, in the main, prioritize engaging experiences over frothy marketing and questionable tokenomics.

The preponderance of Layer-2s has also made networks better equipped to handle user demands than they were a few years ago. Perhaps most importantly mainstream adoption is growing as traditional gaming giants like Bandai Namco, Konami, and Ubisoft enter the space and bring their expertise and resources with them.

BCN: Your project Mythical Games is part of the Polkadot ecosystem. Could you explain the thought process behind moving your project to Polkadot and how, if at all, Mythical Games could help Polkadot strengthen its presence in the Web3 gaming sector?

CT: There are a few reasons we decided to move to Polkadot. First and foremost, the parachain architecture not only offers the scalability we need today, but the roadmap for scalability we need in the future. Additionally, Polkadot is highly decentralized and secure, boasting a best-in-class governance model. In fact, Polkadot is the world’s largest DAO and has set a governance example we aim to emulate. Another crucial factor is Polkadot’s flexibility in parachain design, allowing us to create a gaming-specific environment tailored to our needs. This customization reduces friction for onboarding new players, which is invaluable for our growth.

As for how Mythical Games can help strengthen Polkadot’s presence in the web3 gaming sector, we hope to showcase the platform’s capabilities through our successful games and by attracting more developers, users, and builders to the ecosystem. Our game NFL Rivals has already racked up over four million downloads demonstrating our ability to engage a large audience. I think as soon as we finalize the migration to Polkadot, it will instantly be one of the top gaming.

BCN: Stringent regulatory measures have led to the premature extinction of several blockchain projects, including those in the gaming sector. In other scenarios, many blockchain projects have relocated to more friendly jurisdictions for the freedom to carry out their activities. To what extent do you think the current regulatory frameworks across major jurisdictions have impacted the blockchain gaming industry?

CT: It’s true that regulatory uncertainty has slowed innovation in some regions, as companies are understandably cautious about potential legal issues. Compliance costs have also increased, which can be a barrier to entry for smaller studios. At the same time, clearer frameworks in some jurisdictions have provided a pathway for legitimate projects to operate with confidence and I believe innovation in regulator-friendly countries will spur innovation elsewhere. Ultimately, we view sensible regulation as necessary for the industry’s long-term growth.

BCN: For prediction, where do you see the blockchain gaming and Web3 sector in the next five years?

CT: While I don’t have a crystal ball, it’s hard from my vantage point to envisage a scenario in which the space doesn’t continue to evolve in exciting ways and grow. I believe we’ll see blockchain gaming become more mainstream, with multiple AAA-quality web3 games achieving widespread adoption. I expect more traditional gaming firms to come to the party, whether guided by FOMO or a genuine appreciation for what the technology can do to win players’ hearts and minds.

As for the actual gaming infrastructure under the hood, it’ll increasingly enable seamless, low-cost transactions which are almost completely invisible to the end user. Players shouldn’t really have to grapple with any technical complexity to enjoy the games they love, but nor should they miss out on the benefits blockchain brings.