The Blockchain Game Alliance (BGA) has released its 2023 State of the Industry Report, highlighting trends and predictions for the blockchain gaming space.
Web2 Studios Leading the Way
According to the findings, industry professionals largely believe that existing web2 studios and franchises will propel the mainstream adoption of web3 games.
The survey results show that 19.8% of respondents see the launch of web3 games by traditional game studios as the most impactful development for web3 gaming in 2023. Additionally, 15.2% believe the transition of web2 or traditional gaming into the web3 realm is a key factor.
In total, 35% of participants acknowledge the vital role of web2 game studios in advancing web3 adoption, highlighting their contribution of talent, experience, brand recognition, and large audience bases.
Moreover, the report indicates a strong belief among 52.1% of respondents that at least 20% of the global video game industry, projected to be valued at $347 billion by year-end, will integrate blockchain technology within the next 12 months.
This confidence is further supported by the number of web2 gaming giants, including CCP Games (EVE Online), Nexon (MapleStory), Ubisoft, Square Enix, Bandai Namco, Com2uS, SEGA, Konami, Atari, and Netmarble, that have expressed their intent to embrace web3 elements in 2023.
Areas of Concern
However, the industry faces notable challenges, particularly in onboarding and user acquisition, as indicated by 55.1% and 35.4% of respondents, respectively. A significant 70% also confront ongoing misconceptions about blockchain gaming being fraudulent or part of a Ponzi scheme.
A concerning trend noted in the report is the steady decline in women’s participation in the survey, reflecting a decrease in female representation and gender diversity within the industry.
Key findings of the 2023 survey include:
- A majority (79.7%) plan to remain in the industry over the next year.
- 44.3% received cryptocurrency or stablecoins as compensation in 2023.
- Female participation in the survey hit an all-time low of 16.9%.
Industry drivers identified in the report are:
- 76.2% highlighting asset ownership as a key benefit.
- 37.8% foreseeing web2 game studios as pivotal in driving the industry.
- 52.1% expecting blockchain adoption by at least 20% of the gaming industry in the next 12 months.
Challenges facing the industry include:
- Onboarding issues, as cited by 55.1%.
- The persistent misconception of blockchain gaming as fraudulent, mentioned by 70%.
- Difficulties in user acquisition, as pointed out by 35.4%.
The BGA report offers an in-depth overview of the current state of the industry and provides insights into its health, potential growth, emerging trends, and areas of risk.
Future Outlook
Sebastien Borget, President of the BGA, commented on the report’s findings, stating, “2023 was a transformative year. Despite economic pressures and challenging media perceptions, those building in the space have become more disciplined and focused. We anticipate new leaders emerging from these times.
The BGA is dedicated to highlighting trends and showcasing tomorrow’s gaming industry leaders. With record response rates this year, we’re grateful to everyone committed to shaping our industry’s future, and we eagerly anticipate what we’ll build together in the coming year.”
Summary
The Blockchain Game Alliance’s 2023 State of the Industry Report paints a complex yet promising picture for the future of blockchain gaming. It underscores the significant role that established web2 studios and franchises are expected to play in driving the adoption of web3 gaming. Their entry into this domain is not only anticipated to bring a wealth of experience and audience reach but also marks a crucial step towards integrating traditional gaming with the innovative potential of blockchain technology.
Norma ISO 10816
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