5 reasons why Web3 games are not fun to play

The rise of web3 games caused a stir in the gaming world in 2021. However, despite their initial popularity, these games are now struggling to maintain even a fraction of their active users. In this article we’ll go over 5 reasons why Web3 games are not fun to play and more importantly if they’ve had their day or are here to stay.

#1 - They are not built to provide a gaming experience

Blockchain games are complex. To start playing most games, players need to create a crypto wallet, buy crypto, connect the wallet to the game and more often than not - purchase an NFT. That is a lot to navigate before even beginning the gameplay.

Another issue is the slow speed and high fees associated with blockchain transactions. Web3 games rely on blockchain technology, which is notorious for slow transaction times and high fees. This can greatly impact the gaming experience, as players may have to wait several minutes or even hours for their in-game assets to be transferred or for a purchase to be processed. There have been numerous instances of network clogging. The BAYC land sale is a classic example.

Web3 technology is new enough that best practices are still being formulated and the complexity in solving this leads to developers focusing on tech issues instead of enhancing gameplay.

#2 - They are built as earning farms and not to have fun

Most P2E games today have been built with the focus on profit rather than entertainment. And this seems to be a 3-part issue:

1. High entry barrier: In Web3 games, players need NFTs to get access to a game which is most often very expensive. A Web3 game launched by Yuga Labs, the creators behind BAYC, requires players to own a “Sewer Pass” (2.89 ETH (~$4600) in order to play for undisclosed prizes depending on your leaderboard standing. On the other hand, with the free-to-play versions in Web3, the gaming experience often falls short and does not meet the standards that gamers expect.

2. Lack of social gaming: Another challenge of Web3 games is the absence of social gaming elements and insufficient community engagement. This automatically causes low activity and a lonely gaming experience due to limited player adoption.

3. Superficial games: A large number of Web3 games are just DeFi apps masked as games. They lack the depth and sophistication to attract gamers in the long run and have little to no gameplay with poor tokenomics and a non-existent economy.

#3 - They cannot be played on mobile

While gamers in Web2 are moving towards a convenient and quick-to-play mobile gaming experience, Web3 games are chasing the declining desktop gamer base. Even if they’re available on mobile, it’s mostly Android because Apple levies a heavy tax on game developers to sell on their devices. Roughly a third of mobile users are on iOS and this number is higher in developed countries.

The lack of mobile compatibility forces many gamers to use a desktop which significantly limits their accessibility and convenience. This makes it difficult for players to enjoy the games on the go.

#4 - There is too much FUD that kills the FUN

Web3 games have been plagued with rug pulls, project collapses and scams. Beyond the man-made pump and dumps, most games have been observed to be naturally cyclical - showing a dip after the initial high due to unsustainable economic models. Since the beginning of 2022, the top 10 blockchain gaming projects by market capitalization fell as much as 95% according to Delphi’s The Year Ahead for Gaming report.

The cyclical nature of web3 games and the inherent price crash does not give players any comfort. A survey by Coda Labs found that mainstream gamers feel negatively towards common tenants of Web3 gaming, such as cryptocurrency and NFTs. Even top blockchain games like Axie Infinity and Alien Worlds, which took the world by storm in 2021, struggled to retain 5-10% of their active users.

#5 - Regulatory uncertainty adds to the FUD

The market of 2020–2021 experienced exponential growth. But 2022 saw an enormous breach of ecosystem-wide trust from the Terra Luna collapse to the FTX-Alameda blow-out. This has put vulnerabilities of the sector in focus.

Japan has recently relaxed requirements for token listings and pushed a more welcoming message for firms. China banned crypto trading and clamped down on mining. India revealed that IMF Is Working With G-20 for Crypto Regulations. The European Union’s sweeping Market in Crypto-Assets (MiCA) legislation is slowly moving toward becoming law which will apply stricter rules than are in place now. A lot of countries are wanting to regulate crypto and blockchain technology by setting rules to protect consumers, but not everyone agrees on the same route for these regulations.

Regulatory issues and taxation laws make it difficult for players to move between the financial system and cryptocurrency market. Players find it difficult to convert their winnings off-ramp into fiat after making significant investments and earning rewards. This contributes to the FUD, as players are uncertain about the future of these games, the value of their in-game assets and their crypto rewards.

In conclusion, while Web3 games have the potential to revolutionise the gaming industry, they are challenges that need to be fixed for them to reach the scale of Web2 games. As Web3 infrastructure catches up with Web2 capabilities, new blockchain-based gaming mechanics will be reintroduced to the market.