Korea IT Times celebrates its 20th anniversary with Insightful columns from local and international thought leaders. Following contributions from experts from all walks of life in July, August, September, and October, the column will continue in November and December.
- Jinkook Kim, CEO of Coreline Soft: "Lung Cancer Awareness Month" in November: The No. 1 killer... Early Detection Saves Lives
- Ananth Lazarus, Managing Director, APAC, GTDC: Co-opetition: How Collaboration is Strengthening Cybersecurity Defenses in South Korea
- Jeremy Foo, Global Head of Gaming at TZ APAC: Building a Sustainable Web3 Gaming Ecosystem: Why Real Utility, Fair Play, and Innovation Are Key
- James Toledano, Chief Operating Officer of Unity Wallet: Crypto For Beginners: 4 Things To Know Before Getting Started
- James Lee, Head of the North American Division at Coreline Soft: Coraline Soft and Temple Lung Center, Opening a New Chapter in Lung Health
- Jason Lau, ISACA Board Director: AI in 2024: Balancing Innovation with Security and Ethics
- Byoung Min Im, Columnist: Malaysia's Zuhor State will be the next Singapore
- Alexandre Dreyfus, founder and CEO of Chiliz and Socios.com: Blockchain's Game-Changer Ushers in a New Era of Sports Engagement
Everyone is talking about blockchain gaming and the VC dollars are pouring into the sector, but are gamers enjoying the experience? For the Web3 gaming sector to survive, and thrive, developers and their partners need to prioritize building games that people actually want to play, says Jeremy Foo, Global Head of Gaming at TZ APAC. -- Ed.
By Jeremy Foo
The Web3 gaming space holds massive potential, promising new ways for players to engage, own assets, and shape in-game experiences. As a result, in the last few years, we’ve seen a tremendous influx of capital and interest from investors, infrastructure providers, and developers, all eager to ride the wave and capitalize on “the next big thing”. Yet, in spite of all this, the industry still faces significant challenges. Let’s look at the data: According to a 2023 report from DappRadar, blockchain gaming activity dropped 24.6% in Q3 2023 compared to the previous year, yet venture funding in the space reached $2.3 billion in 2023. Q2 2024 saw a further $1.1 billion flowing into blockchain gaming, but it remains to be seen whether this is translating into on-chain activity. In short, this disconnect between investment and engagement tells us something crucial: plenty of games are being built, but they are not necessarily ones that people want to play.
Part of the reason for this dropoff in player engagement is that too many blockchain games prioritize short-term hype and speculative value, often leaving players disillusioned and feeling exploited. This has been proven time and time again and the harsh reality is that hardcore gamers now actively resist blockchain integration… and it’s hard to blame them. The industry's reputation for scams and over-financialization has created legitimate skepticism about the value that blockchain can provide. However, the solution to this isn't to force blockchain down players' throats - it's to build games so good that the blockchain element becomes a natural enhancement rather than the main selling point. In short, to truly thrive, Web3 gaming needs two critical elements: genuine utility and ethical systems.
Firstly, the real utility must replace speculation-driven models. Too often, games launch without robust mechanics, focusing instead on hype and promises. A strong prototype is essential—it proves a commitment to player experience, not just token value. The Tezos ecosystem actively supports 20 high-quality game developers annually, giving them the support they need to deliver excellent gaming experiences before thinking about token launches. We only collaborate with developers who prioritize gameplay, signaling a dedication to value that goes beyond financial speculation. No more whitepaper promises or speculative launches. Every project must answer one simple question: How does blockchain improve player experience meaningfully?
Secondly, the industry must avoid exploitative tactics that treat players as mere “exit liquidity” for early investors. Common practices, like empty airdrops or vague rewards, often leave players with broken promises. The focus should be on ethical models that reward players fairly and build trust within the community, supporting a sustainable gaming ecosystem for the long term.
Finally, blockchain’s real promise lies in its ability to create unique player experiences. A great example of this is how Kindred AI uses the Tezos blockchain to ensure their AI companions are truly unique, adding depth and meaning to player ownership. This approach showcases how blockchain can add value beyond simple transactions and financialization.
Without a doubt, Web3 could have a very bright future. Blockchain technology is a natural solution to a number of issues facing the gaming industry at present. To take just one example, the current cost of user acquisition in mobile gaming has skyrocketed to nearly $10 per user in the US. Web3 gaming could solve this through organic community growth and genuine player ownership. Beyond that, the real opportunities lie in building player-driven economies that enable genuine value creation, facilitating true interoperability (more meaningful integrations than just carrying a sword between games), and community building that rewards engagement, not speculation. All of this and more is possible, but only if we build games worth playing first.
Fortunately, we have a good roadmap for what success looks like thanks to the lessons learned by the mobile gaming industry years ago: don't start with Counter-Strike clones; start with Angry Birds. Web3 gaming needs to follow this evolutionary path, focusing first on fun and accessible experiences that naturally benefit from blockchain integration. When this is done right, players of blockchain-based games become invested in optimizing traits and building valuable collections. This is the kind of utility blockchain should enable - enhancing gameplay, not replacing it.
The future of Web3 gaming won't be built on empty promises and speculation. This is the reality check that Web3 gaming needs. Instead, it will be built on games people actually want to play, where blockchain adds genuine value to the experience.
