By Yash Pariani

In the modern world, online gaming is no longer just seen as a way to relax or pass the time at home. In the last ten years there has been a paradigm shift in it, where it is now more than just a hobby or enjoyable activity and rewards users for their time. Games are one of the most used types of entertainment in the world, and mobile devices revolutionize the experience for most users. Through games, people can create a community that is inclusive of all ages, races, and religions. Therefore, playing video games is one of the most effective ways to introduce new technologies to people and will pave the way for the widespread adoption of Web3 and the digital revolution.

The gaming industry is booming rapidly and has tremendous potential for expansion. Based on Deloitte’s forecast for the gaming business in India, the CAGR of online gaming revenue was anticipated to be 40% by 2022, or more than $2.8 billion. Some blockchain-based protocols, namely the Tron node, have seen the gaming industry develop as a mainstay. Furthermore, the blockchain-based decentralized protocol enables game producers to produce blockchain-based games and provide consumers around the world with the best gaming experience.

Beginning of a New Era!

Web3 is a transition technology from the free-to-play (F2P) entertainment model to the play-to-earn (P2E) entertainment model, heralding the dawn of a new era in the gaming industry and providing new opportunities for industry to be monetized. Everything a player owns can be bought or sold in and out of the game, including equipment used to play the game and any goods they may have created. This will create a new gaming ecosystem where electronic payment gateways will power all market transactions, creating a truly digital economy. In addition, a deep consolidation of the gaming network is expected. Each person who participates in trading in-game currency can also interact with other people outside of the game world.

Economic Effects of Web3 Games

Financial Express analysis indicates that the online gaming industry will grow from its current value of $180 billion to $256 billion by 2025, attracting more than 2.3 billion players worldwide. It is also one of the world’s fastest growing industries, with a projected growth rate of 9.2% by 2025 and an annual growth rate of 7%. Today, online gaming is an important part of the global economy, as local communities have benefited from the industry’s growing profits, tax revenues, and job market. One of the applications with the highest data usage today is gaming. As a result, it also encourages the creation of novel technology. Furthermore, online gambling has already benefited many jurisdictions and is expected to have a substantial economic effect.

No matter how exciting it is, venturing into the future will undoubtedly bring a lot of inhibitions. However, the gaming industry is enthusiastically embracing the influence of Web3, and this exceptional response is due to the allure of this cutting-edge technology. The standalone nature of the system is the most attractive of the various disruptions and use cases that the Web3 game offers. It has distributed and democratized the gaming industry, allowing it to function with little to no influence from a top tier organization. This reduces the dependency on a single server while improving the transparency and accessibility of the user interface.

However, the story does not end there. Offering players individualized experiences is preferable in a decentralized gaming ecosystem. In other words, a player can control how they interact with the game and its rewards, which sounds like every additional feature or update that is present or yet to be added. Because physical perspectives on reality are about to change, the metaverse cloud that comes with Web3 technology must also be taken into account. Also, the fundamentals of fantasy gaming and esports will no doubt be redefined by the metaverse, even though the concept is still extremely young. Thus, players can create their virtual worlds, customize existing ones and interact with them.

The next business trends

Web3 will alter the way people play despite this paradigm shift. Although moving from game consoles to computers is not a change unique to this technology, it will give rise to a new generation of gamers because this technology is now available on smartphones. When a user is addicted, the game business can also standardize the subscription model. Thus, it is possible to design a better pay-as-you-go business model for already existing game consoles, controllers, streaming services, and community memberships, similar to the business models for music and over-the-top (OTT) apps. It will certainly increase customer engagement by a factor in terms of conversions.

All things considered!

The gaming business is anticipated to not only undergo a significant transformation, but also to thrive. The gaming industry is expected to change to accommodate Web3 and the current financial environment. Therefore, to establish the Web3 game platform, game companies are working progressively. There will be a significant breakthrough moment as companies develop the ecosystem to support actual gaming activities, and as the ecosystem continues to expand for more sophisticated types of gaming investment.

The author is co-founder and CEO of House of Gaming.

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