Two sides of Web3 gaming have come out – one pertains to a reduction in investment by VCs, while the other draws a more optimistic picture of the industry. First, the first quarter of 2024 saw a drop of 60% in investments in the gaming world. Second, Ubisoft unveiled its first blockchain game. Third, Minecraft has gone through a makeover as a Web3 game.
Every aspect ultimately takes blockchain games back to the optimistic side, even with reduced investments.
Crypto winter hits blockchain games: VC investment slumps
Crypto winter brings back memories of when cryptocurrencies were sluggish with their values. The bearish run was more than obviously stretching the phase that made it difficult for traders to wait for the surge. That similar phase has likely hit blockchain games. This comes to light after reports surfaced, mentioning a drop of almost 60% in investments in the segment.
The first quarter saw only $288 million being driven into the market. Two players stood out – Parallel Studios and Gunzilla Games. They secured funding worth $35 million and $30 million, respectively. Parallel Studios has not shed details about how the team plans to use the funds, but members have cleared the air by saying that they will expand the presence on several platforms.
Gunzilla Games has been more specific. The team has said they intend to utilize funds for their upcoming project – Off the Grid. That is a free-to-play battle royale game that could be expanded to other gaming platforms.
AAA publisher Ubisoft enters the arena: Blockchain game in the works
Ubisoft has announced that it is working on its first blockchain game – Champion Tactics Grimoria. The announcement was made during Paris Blockchain Week. The player-vs-player role-playing game has a feature that allows players to craft their figurines, which can be combined with others to form a team. Every figurine can have a unique feature and characteristic to be well-equipped to face the competition.
Nicolas Pourad, the Vice President at Ubisoft Strategic Innovation Lab, said they are currently testing the waters with Champions Tactics. There is a chance that the team will soon expand its efforts to a AAA title. According to Nicolas, the goal is to understand how the market works and how the game is launched.
The idea is to allow players to populate the game. This will likely boost the adoption of blockchain games and drive its mainstream recognition.
Minecraft meets Web3: Solcraft announces soft token launch
Solcraft has made two announcements – the launch of SOFT token and Web3 Minecraft Server. The latter gives the game a Web3 makeover, while the former intends to boost the reward mechanism. The launch of the token is tentatively scheduled for April 16, followed by the launch of the Web3 Minecraft Server on the next day.
Solcraft is practically opening the doors for players to interact with digital assets per their preference. The team has said that they are looking at it through the lens of shaping the future of gaming and not just the title.
The SOFT token will be launched with a total supply of 10 million. It will be distributed among liquidity, marketing, CEX, team, and development as 4 million, 2 million, 1 million, 1 million, and 2 million, respectively. Solcraft is also integrating the mechanism of NFT so that players own the digital assets. The decentralized mechanism of the game aims to elevate participation through voting on key decisions, contributing ideas, and other ways of participation.
The future of blockchain gaming: Challenges and opportunities
Web3 gaming is a new venture that has been left out for exploration. VCs may not be precisely hesitant about granting funds. They could target the specifics, thereby driving a lower level of investment in the segment. There is a dire need to have a sustainable model to strengthen investors’ confidence and create engaging gameplay. There is certainly a scope for adoption and growth, no matter the level of challenge one mentions.
Conclusion
Minecraft and Ubisoft have set an example that platforms can enter the sphere with a new title or expand their current presence. It would first benefit existing players and then onboard over a million Web3 or blockchain gaming players.
