What's Gaming Studios' Next Big Move?

The global gaming industry, valued at around $217 billion, is projected to grow at a compound annual growth rate (#CAGR) of 13.4% through 2030. Web3 gaming, A.K.A #GameFi, represents an emerging frontier within this space, with significant potential to drive mass blockchain adoption.

Gaming’s social and viral characteristics make it uniquely suited to blockchain integration, appealing to a broad audience beyond the niche user bases of DeFi or art NFTs. A prime example of such gaming and blockchain integration are Telegram Mini App games.

Asia-Pacific, the U.S., and China are leading in gaming adoption, and analysts predict that one successful Web3 game could bring tens of millions of users to blockchain, making Web3 gaming a transformative market for blockchain adoption.

What's Driving Investment for Web3 Gaming

Growing Industry Participation

Broad entry by major studios: Major companies like @Sony, @Ubisoft, and @EpicGames are actively exploring Web3, investing in blockchain projects or developing blockchain games internally. Their entry signals increased institutional confidence and positions Web3 gaming for mainstream acceptance.
Rapidly expanding market: With many Web3 games set to launch in the next one to three years, early investors can gain a foothold before these games capture large audiences.

Development Approaches by Web2 and Web3 Studios

Web2 studios: Established and new traditional studios like GENIFY and @confictionlabs integrate blockchain features into traditional gaming, leveraging their experience and player base while carefully testing tokenomics. This approach minimises risk and aims for steady user adoption.
Web3 studios: Blockchain-native studios @PlutoVisionLabs and @playCrystalFun are building games entirely on blockchain, offering innovative models such as platform independence and user-generated content. While riskier, this approach has high potential for revolutionary growth and user engagement.
Hybrid Web2.5 studios: Studios like @illuviumio and @Parallel balance blockchain and traditional game mechanics, creating new IPs with strong funding and a focus on sustainable tokenomics. Positioned between established and blockchain-native studios, these games offer unique growth opportunities.

Market Trends and Sentiment

Player interest in Web3 gaming is mixed as traditional gamers remain cautious. However, Asian markets show enthusiasm, demonstrating growing acceptance; they are attracted by asset ownership and earning potential.

VC investments continue despite challenging market conditions, with traditional studios experimenting with blockchain features while prioritising player experience over tokenomics.

Future Outlook

Web3 gaming represents a high-potential investment area within the broader gaming industry. As the sector matures, balancing traditional gameplay with blockchain integration will be key. These hybrid models drive engagement across mobile and console platforms, combining traditional gaming elements with blockchain features for a balanced experience. Mobile gaming is emerging as a key driver in Asia, and the industry is seeing console games like @moonraygame and @playoffthegrid adopt web3 components.

Success will likely hinge on sustainable economies, meaningful gameplay, and robust community engagement. This sets the stage for widely adopted Web3 gaming models that enhance rather than define the player experience. Major studios’ cautious progression alongside blockchain-native innovators points toward gradual, sustainable integration, positioning Web3 gaming as a powerful avenue for both blockchain adoption and market growth.

What's aelf Ventures?

aelf Ventures is the investment arm of aelf, a high-performance Layer 1 AI blockchain platform that offers builders and users advanced AI functionalities and cutting-edge infrastructure. With a dedicated fund of $50 million, aelf Ventures is focused on empowering Layer 1 blockchain projects and various aspects of the Web3 ecosystem, such as DeFi, GameFi, NFT, and those looking to make the transition from Web2 to Web3.

Till date, aelf Ventures has invested in projects such Crystal Fun and Confiction Labs (pka. Mythic Protocol), and is actively incubating promising ventures within the ecosystem such as Portkey, eBridge, Forest NFT Marketplace, AwakenSwap, eWell, and BeanGoTown.

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What's Traditional Gaming Studio's Next Big Move? | aelf Ventures