Web3 Gaming Hype Fizzles: Developer Blames Unrealistic Expectations

Riccardo Sibani, Chief Product Officer (CPO) at the Web3 gaming platform My Neighbor Alice, believes the hype surrounding Web3 gaming has cooled due to unfulfilled promises and unrealistic expectations.

Web3 Gaming Needs Time to Deliver on Promises

Sibani, a blockchain developer, further argues that the mismatch between retail and traditional investor expectations has contributed to the declining user interest in Web3 games.In written responses to questions from Bitcoin.com News, Sibani suggests that the industry can reignite interest by delivering tangible results and managing expectations. Developers need to tone down on promises and emphasize that building the next generation of games takes time.

On the question of which sector benefits more, Sibani asserts that while the union of blockchain and online gaming is mutually beneficial, it’s the players who gain the most through more engaging and democratic gaming experiences.

Sibani acknowledges that hardcore traditional gamers might be opposed to Web3 due to what he called the prominent display of “blockchain elements” that can create friction and distract from the gameplay. He suggests developers focus on delivering high-quality gameplay that doesn’t force blockchain features on players.

The CPO also touched on how the regulatory landscape is impacting Web3 gaming and how players in the space are navigating this. Below are the rest of the My Neighbor Alice executive’s responses to the questions sent.

Bitcoin.com News (BCN):Many users believe blockchain technology has revolutionized the online gaming sector, introducing elements such as increased user control, transparency, and proper decentralization. They argue that blockchain boosts online gaming, contrary to the opinion that online gaming merely provides an outlet for blockchain to express itself. This raises the question: Who benefits more from the union between blockchain technology and the gaming sector? Has the gaming industry experienced a boost by integrating the technology, or has the technology enjoyed greater adoption through online gaming as an outlet?

Riccardo Sibani (RS): Both the gaming industry and blockchain technology benefit significantly from their union, but ultimately, it should always be the player who gains the most. Our motto, “Power to the Players,” isn’t just a slogan—we truly believe in it because we’re gamers ourselves. We believe in our community and our goal is to create tools that give them even more control.

Blockchain technology has revolutionized online gaming by bringing increased user control, transparency, and decentralization. It’s the key that allows us to envision a future where the community owns the game, much like an open-source project. This model hasn’t traditionally fit in the gaming industry, but blockchain makes it possible.

So, ultimately, it’s the players who come out on top. They get a more engaging and democratic gaming experience where they have a real stake in how things evolve.

BCN: Some people believe the buzz surrounding the Web3 gaming sector has faded when compared to the 2021 era. Do you agree that the hype surrounding blockchain gaming is waning? If so, what do you think is behind this, and how should industry stakeholders work to revive the kind of awareness seen in the past?

RS: Yes, the hype around Web3 gaming has definitely faded since 2021. I think it’s because many promises made to players and investors haven’t been fulfilled yet. Some projects overpromised, and the reality is that building the next generation of gaming takes time.

Web3 development is funded by both retail investors and traditional investors. Traditional investors are used to waiting years for returns, but retail investors often expect quick results. This mismatch can lead to disappointment when immediate outcomes aren’t delivered.

To bring back the excitement, industry stakeholders need to focus on delivering tangible results and managing expectations. By working diligently and innovatively, projects will eventually reward their communities—not only through token prices and utility but also with engaging and groundbreaking gaming experiences.

BCN: Your Web3 game My Neighbor Alice claims to be fully on-chain and targets the same gaming audience as the traditional games. How do you achieve the user experience and immersive gameplay quality on-chain that traditional gamers expect?

RS: When we started developing My Neighbor Alice, we asked ourselves, “What will a video game feel like in 10 years?” At that time, several concepts were emerging in the industry: ownership, community, decentralization, new revenue models, and so on.

We decided to fully embrace these new ideas and address the limitations that blockchain technology naturally poses by solving the challenges head-on rather than working around them.

Over the years, we’ve tackled and overcome many issues that took significant effort to build: peer-to-peer networking, a fully trustless economy, dynamic NFTs, seamless transaction execution, and much more that we’ll announce in the future. These innovations have laid the foundation for decentralized gaming, allowing us to deliver the user experience and immersive gameplay quality that traditional gamers expect—entirely on-chain.

I believe we’ve actually defined a new genre in gaming. By integrating blockchain technology deeply into the gaming experience, we’re creating something that hasn’t been done before. We’re not just adding blockchain elements to a traditional game; we’re reimagining what gaming can be when decentralization and player ownership are at its core. By pushing the boundaries of what’s achievable on-chain, we’re setting new standards for the industry and offering players an entirely new way to engage with games.

BCN: In your view, why are the hardcore traditional gamers said to be opposed to Web3 games? And what would it to make them embrace crypto games?

RS: I believe that hardcore traditional gamers are often opposed to Web3 games because many of these games prominently display blockchain elements, which can create friction and distract from the gaming experience. Ironically, a fully on-chain game like My Neighbor Alice exposes much less blockchain friction than games that simply plug NFTs into a traditional game.

It’s about good craft and principles. We’re not just creating a game that uses blockchain; we’re creating a great game, and we use blockchain to give more control and power to the players. By seamlessly integrating blockchain technology behind the scenes, we ensure that the gaming experience remains immersive and enjoyable without the blockchain elements becoming a barrier.

To make traditional gamers embrace crypto games, the focus should be on delivering high-quality gameplay that doesn’t force blockchain features upon players. If we can demonstrate that blockchain can enhance the gaming experience without compromising it, I believe traditional gamers will be more open to embracing Web3 games.

BCN: There are regulatory concerns when it comes to blockchain games. Users often notice how game providers emphasize their licenses and the extent of their jurisdiction, which determines where and how such games can be accessed by players. How would you rate the regulatory atmosphere for blockchain games?

RS: The regulatory atmosphere for blockchain games is indeed complex and varies across different jurisdictions. It’s important to note that using blockchain technology doesn’t automatically make a game decentralized. Blockchain is a technology—a tool—not a feature in itself. Decentralization is the feature that truly changes how games operate and how they interact with regulatory frameworks.

Regulations often aim to control who has access to sensitive information or to manage speculative intentions in financial markets. Our goal is straightforward: we just want to make a game, like any other game that isn’t on-chain. We’re focusing on creating an enjoyable gaming experience without involving sensitive data or speculative elements that typically attract regulatory scrutiny.

In a decentralized system, issues of jurisdiction and licenses can be lessened because decentralization is agnostic to geography—anyone with access to the blockchain can participate. This doesn’t mean ignoring regulations but aligning with their intent by avoiding the collection of sensitive information and minimizing speculative risks.

By embracing decentralization, we’re empowering players and creating a gaming environment that’s open and accessible, much like traditional games. This is what we mean when we say we want to give power to the players. We’re leveraging blockchain technology to enhance the gaming experience, not to create regulatory complications.

BCN: The U.S. Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) appear to vary in their classification of tokens offered in Web3 skill-based games. While the SEC adopts a more stringent securities classification, the CFTC is more lenient and classifies such tokens as commodities. This situation is confusing for many practitioners who may find it difficult to achieve their goals under unclear regulations. How are you and your team navigating the “meandering” regulatory terrain in this sector?

RS: The varying classifications by the SEC and the CFTC certainly create a great deal of uncertainty for everyone in the blockchain gaming industry. We, like many others, just want clarity on what’s allowed and what’s not. As regulations evolve, we adapt our products and technologies to remain compliant.

Our goal is straightforward: we want to build games and let players enjoy them. In essence, we’re not different from other games that use microtransactions—we simply utilize a different technology to enhance the gaming experience. We believe that technology should not be an issue for regulations, which ideally should be tech-agnostic.

We’re actively navigating this “meandering” regulatory terrain by staying informed and working closely with legal experts to ensure we’re aligning with all current requirements. By focusing on creating enjoyable games and responsibly integrating new technologies, we aim to continue delivering value and innovation to our players while respecting the regulatory landscape.

BCN: Where do you see the blockchain gaming industry by 2030?

RS: By 2030, I see the blockchain gaming industry reaching unprecedented heights. The recent Web3 gaming boom has sparked innovation, and since creating a high-quality game can take 5-7 years, we’re about to witness projects from this era coming to fruition.

What we’re seeing now is just a glimpse of the future. In the next decade, blockchain games will offer immersive experiences that rival traditional games, seamlessly integrating features like true ownership of digital assets and player-driven governance—all without compromising gameplay quality.

Players will enjoy more engaging worlds where they have real influence. By 2030, blockchain gaming will be a mainstream part of the industry, offering richer and more rewarding experiences for everyone.

What we see today is just a sneak peak of the future.