More blockchain gaming professionals now come from a gaming background than any other field, according to Blockchain Gaming Alliance (BGA) 2024 State of the Industry Survey and report.
More than half (52.5%) of respondents reported having gaming experience, the highest percentage recorded since the survey began in 2021.
In contrast, blockchain or cryptocurrency specialists now represent just 10.8% of the field, a significant decline from 21.7% in 2023. For an industry that has faced significant scrutiny regarding the importance of building games that are fun first and less financial, it is important, the fourth annual report said. There is an increasing prevalence of professionals coming from a gaming background rather than blockchain or cryptocurrency.
The report also shows that ownership of digital assets continues to be the biggest benefit of incorporating blockchain technology into gaming, with 71.1% of respondents identifying it as such. This was the highest-rated feature among industry professionals since the inaugural survey in 2021.
Next, four in 10 respondents said player reward models and new revenue models are the next biggest advantages blockchain technology can bring to gaming. Many participants highlighted profit and motivation systems for players that can only be achieved through Web3 technology.
Poor setup and user experience remain the biggest challenge in the blockchain gaming industry, according to 53.9% of respondents. However, this number has dropped significantly from 79.5% in 2023. The data reflects the industry’s focus on making Web3 games more accessible, with many moving the more technical aspects of blockchain to the background.
As for the negatives, 23.8% of those surveyed said they view the crypto winter as a headwind. Another 17.3% said traditional games and platforms banning NFTs were another setback. About 14.9% cited macroeconomic events, 6.3% said security protections and threats were negative, and 6.1% said regulatory developments were difficult.
“In 2024, we’ve seen real progress in making blockchain gaming more accessible, and now, industry professionals say onboarding is less of a barrier than it was last year,” said Sébastien Bourget, BGA President and COO of The Sandbox. , in a statement. “Another big shift according to our survey results is that more professionals are coming to web3 with a background in traditional games, rather than crypto, and this is impacting the types of games being developed, especially those that prioritize fun and engaging experiences at the expense of complexity.” The success of Platforms like TON (on Telegram) highlight how simple and accessible games can achieve widespread adoption.
The report also revealed that the industry continues to battle misconceptions, with 66.3% of respondents saying they still face accusations that blockchain gaming is a scam or Ponzi scheme, the report said. A new misconception gaining momentum in 2024 is that Web3 games are full of bots, identified by 29.5% of respondents.
Overall, interest in blockchain gaming increased in 2024, with the number of participants tripling compared to the 2021 survey. However, gender diversity remains an ongoing challenge, with female representation among participants standing at just 17.3%.
“As the market continues to rebound, we are seeing remarkable resilience in our industry. This year has brought significant advances in high-level gaming and strategic collaboration between leading Web2 companies and blockchain ecosystems,” Burgett said in the report. More than eight out of 10 respondents say they are
We are committed to remaining in the industry over the coming year, which indicates an unwavering dedication to our progress.
Blockchain gaming has also expanded its reach globally, with strong growth observed in South America, the Middle East and Africa, Burgett noted. This represents a significant shift from the early years of the survey.
At the heart of this growth is the principle of player empowerment. Ownership of digital assets remains a cornerstone, with 71.1% of respondents recognizing it as the greatest benefit provided by blockchain gaming. “Experimenting new revenue and rewards models remains top of mind for developers, reflecting our ongoing quest to design games and virtual economies that place legitimate value on player engagement while also being clearly robust and sustainable,” Burgett said.
“Finally, our focus on gender diversity has shown an encouraging increase in female participation after a declining trend,” Burgett said. “But we are far from where we would like to be in terms of women’s representation in the BGA, so our work continues to make sure we include and represent all groups within our industry. Together, we are building an industry that empowers players, fosters innovation, and reshapes the future of gaming.”
Traditional games and IPs moving to Web3 were cited as the single biggest positive impact on Web3 gaming in 2024 at 18.6%, up from 2023, when it ranked second at 15.2%. This is followed by traditional studios creating new IPs in web3 at 15.7% in 2024, down from first place they previously held in 2023 at 19.8%. From 2023 to 2024, the percentage of survey respondents who cited traditional game studios will remain unchanged at about 34% combined.
Web3 games predictions in 2025
As for expectations for 2025, those surveyed expect to see the integration of blockchain and infrastructure into fewer alternatives. In order to survive, many of these infrastructure projects will choose to consolidate, either merging with other smaller companies or being absorbed by a larger company.
Web3 is also expected to run in the background, rather than being exposed openly as was the case in the first generation of pay-for-profit games. The prevailing view is that most individuals entering the field of Web3 gaming focus primarily on the player experience and have limited interest in the underlying technical aspects. Since the last market cycle, more efforts have been put into UX and UI, prioritizing a seamless experience similar to what players expect from Web2 games.
Artificial intelligence is expected to deliver new and personalized gaming experiences. Many game developers explore applications of AI, which have been primarily used for data collection and analysis, although some have dabbled in generative AI for development. As fully serialized games and standalone worlds emerge, AI will continue to become a core foundation of gaming. AI that collects data from players may evolve to the point where it enables personalized experiences, ranging from making recommendations based on player behavior to modifying in-game interactions.
The industry expects that there will be enhanced interoperability as well between blockchain gaming infrastructure. Interoperability will shift from being a technical feature to a cornerstone of gaming identity, fostering interconnected economies, collaborative storytelling, and a unified sense of progression across the Metaverse.
Finally, decentralization is expected to take hold in eSports. Esports competitions have traditionally been centralized systems where the main organizers and game developers have power over all major decisions. These entities often determine the direction of the game’s competitive landscape, including the format, qualifying teams, and tournament prize pool. Decentralizing these systems could lead to the creation of eSports that is more closely aligned with the interests of the community. They can include more teams, vote on format changes, and contribute to the prize pool. Decentralized eSports will open up more gaming possibilities.
methodology
Now in its fourth year, the BGA’s annual State of the Industry Report was conducted, analyzed and compiled by Web3 consulting firm Emfarsis, a task the company has undertaken since the BGA’s inception. The report covers adoption, jobs, innovation, growth and other key developments.
To make the report more comprehensive, participants come from professionals across various sectors within Web3 gaming, from content creators to journalists, C-level executives, government officials, researchers, investors, and more. The results help provide insight into the current state of blockchain gaming and its trajectory heading into the next year.
In 2024, the BGA partnered with consulting firm Emfarsis for the fourth consecutive year to conduct its industry survey, which includes 19 questions on jobs, industry growth, adoption and challenges. The survey was conducted from 21 August to 29 September 2024, and was distributed through the BGA member database, LinkedIn, email, X and Telegram, with additional responses collected at events such as Gamescom Cologne and TOKEN2049. Of the 716 answers, 93 were excluded as incomplete, leaving 623 valid answers.
For analysis.
The 2024 survey received 623 valid responses, an 18.4% increase over 2023 and nearly three times as many as the previous year.
Blockchain Game Alliance (BGA) is an organization committed to promoting blockchain in the gaming industry. BGA’s goal is to spread awareness about blockchain technologies and encourage their adoption by highlighting their potential to foster new ways to create, publish, play, and build strong communities around games. The group has 350 members in 50 countries.
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