<p><em>This report was written by Tiger Research, offering analysis of strategies for the resurgence of Web3 gaming and GameFi.</em></p><p><img src="https://academy-public.coinmarketcap.com/optimized-uploads/d101a91369674d41bfcd741eb83ef173.jpeg" /></p><p><a href="https://reports.tiger-research.com/p/saving-gamefi-kor" rel="noopener noreferrer nofollow">&#x1f1f0;&#x1f1f7; 한국어로 읽기 →</a></p><h2 id="header-0">TL;DR</h2><ul><li>Corporate investment in Bitcoin is spreading: Corporate investment strategies are gaining momentum following the SEC&#39;s approval of Bitcoin spot ETF. This trend is now extending beyond Western markets to include Asian regions.</li></ul><p></p><ul><li>Why are corporations investing in Bitcoin: Bitcoin presents an appealing option for diversifying financial assets, improving fund management efficiency, and enhancing corporate value.</li></ul><p></p><ul><li>Asian participation and prospects: Asian companies are still in the early stages of Bitcoin investment. However, success stories like Metaplanet demonstrate the potential for market expansion. The lack of regulatory clarity and institutional infrastructure remains a significant challenge.</li></ul><p>Dive deep into Asia&#39;s Web3 market with Tiger Research. Be among the 4,000&#43; pioneers who receive exclusive market insights. <a href="https://reports.tiger-research.com/p/saving-gamefi-eng" rel="noopener noreferrer nofollow">[Subscribe]</a></p><h2 id="header-1"><strong>1. Introduction</strong></h2><p>Web3 gaming attracted global gamers with its vision of user ownership, open economies, and community-driven ecosystems. However, the industry faced challenges as excitement faded. GameFi&#39;s play-to-earn (P2E) model failed to sustain engagement, and poor user experience remains a barrier for mainstream gamers.</p><p>Despite these issues, Web3 gaming holds strong potential. GameFi remains the fastest way to onboard the public into the Web3 ecosystem. This report explores the challenges in GameFi and provides strategies to help developers achieve sustainable growth in a changing market.</p><h2 id="header-2"><strong>2. Harmonizing Web2 and Web3 Gaming</strong></h2><h3 id="strong-2-1-aligning-development-priorities-strong"><strong>2.1. Aligning Development Priorities</strong></h3><p>The most important part of developing a Web3 game is focusing on its core. Whether it&#39;s Web2 or Web3, the game must be fun. Decentralization and ownership, while key to Web3, should complement the game, not define it.</p><p>Source: Off The Grid<img src="https://academy-public.coinmarketcap.com/optimized-uploads/3a407f8a695a499dbb67a8a8e06c59c2.jpeg" /></p><p>In 2021, GameFi dominated the market, and many developers rushed to release games. They prioritized short-term funding and monetization, which limited their ability to create enjoyable or AAA-quality games. Off The Grid, a Web3 game on the Avalanche subnet, took a different approach. It focused on gameplay first and added blockchain features to enhance fun and value. By staying true to the game&#39;s essence and using Web3 technology effectively, developers can deliver a rich player experience and gain public acceptance.</p><h3 id="strong-2-2-capitalizing-on-user-generated-content-strong"><strong>2.2. Capitalizing on User-Generated Content</strong></h3><p>UGC examples - Nexon&#39;s &#39;Maplestory Worlds&#39; (custom content creation) and Gensokhishi Online (user-designed 3D models for in-game use)<img src="https://academy-public.coinmarketcap.com/optimized-uploads/33096bd96a8641d692352546183ca0f5.jpeg" /></p><p>User-generated content (UGC) has been a key factor in the success of Web2 games. It increases player engagement and extends the lifespan of game IPs. Many Web2 games still use this strategy. For example, Nexon&#39;s MapleStory provides a toolkit through MapleStory World. This allows users to create their own content and enrich the ecosystem.</p><p>In a Web3 environment, blockchain technology improves UGC by enabling users to own and monetize their creations. This motivates players to create and engage more actively. UGC helps Web3 developers build community-focused ecosystems and evolve games with player input. This approach extends the game&#39;s lifecycle and creates a sustainable ecosystem where players and developers earn revenue.</p><h3 id="strong-2-3-reimagining-curated-marketplaces-strong"><strong>2.3. Reimagining Curated Marketplaces</strong></h3><p>Game Hub is a Steam version of GameFi. Source: gamefi.org<img src="https://academy-public.coinmarketcap.com/optimized-uploads/d3f6c39da09b4bafbe4138ad8660e046.png" /></p><p>The decentralized values of Web3 may appear to conflict with curated marketplaces, but combining them offers clear benefits. Platforms like Steam and the App Store use content curation and quality control to create trusted environments. This helps players easily discover and enjoy content.</p><p>In Web3, curated marketplaces can provide trust and convenience while keeping openness and scalability. A governance structure like a DAO can support decentralization, while curation ensures quality and safety. This hybrid model makes Web3 games more accessible and familiar to players. It helps drive user acquisition and grows the ecosystem.</p><h2 id="header-3"><strong>3. Reducing Barriers in Web3 Gaming</strong></h2><h3 id="strong-3-1-enhancing-wallet-usability-and-account-abstraction-strong"><strong>3.1. Enhancing Wallet Usability and Account Abstraction</strong></h3><p>The biggest barrier for new players in Web3 gaming is the complicated user experience of Web3 wallets. Wallets are essential for accessing Web3 features, but their complexity often discourages users. GameFi is expected to be a key channel for onboarding the masses into the Web3 ecosystem. However, difficult wallet interfaces and poor user experiences can block immersion and initial entry.</p><p>An example of different log-in options, Source: Openfort<img src="https://academy-public.coinmarketcap.com/optimized-uploads/2639cdd32c6e4030bbd7e98c7133bcfd.jpeg" /></p><p>Account abstraction technology is becoming popular for solving these issues. It lets users access blockchain features without dealing with technical details like private keys or gas fees. It also allows Web3 game developers to combine Web2 authentication methods, such as social logins, with Web3 wallets. This creates a smoother onboarding experience. <a href="https://reports.tiger-research.com/p/openfort-web3-game-eng" rel="noopener noreferrer nofollow">Openfort</a> is an example of this approach. Simple interfaces for transactions and asset management will also help new users understand and enjoy Web3 gaming. These improvements lower entry barriers and encourage broader public participation.</p><h3 id="strong-3-2-shifting-the-narratives-strong"><strong>3.2. Shifting The Narratives</strong></h3><p><img src="https://academy-public.coinmarketcap.com/optimized-uploads/ad3611e155f942d29bfc5ff2ac6a1533.jpeg" /></p><p>Terms such as “GameFi” and “P2E” discourage potential users. These terms emphasize monetization over fun and create a negative image. Many P2E games gained early attention but failed due to unsustainable structures. This failure has reinforced negative perceptions among players.</p><p>Therefore, Web3 games must focus on fun, unique community experiences, and the benefits of blockchain. Profitability should not take priority. This approach attracts players who value enjoyment over financial rewards. Game design should also follow this principle. The term “play-and-earn” better reflects this shift than “play-to-earn.”</p><h2 id="header-4"><strong>4. Iterative Development and Market Validation</strong></h2><p>The Web3 games market faces uncertain demand and quickly changing trends. Game companies must focus on iterative validation and rapid improvement to find product-market fit (PMF). Testing ideas through small projects is more effective than developing large-scale AAA games.</p><p><img src="https://academy-public.coinmarketcap.com/optimized-uploads/8a9b0760a88f498e8987edd4e3dd8e93.jpeg" /></p><p>Even AAA games do not guarantee market success. For example, Assassin&#39;s Creed: Valhalla and Forspoken received positive reviews from critics. However, they faced mixed reactions from players and failed to meet expectations. These cases show that large resource investments alone cannot ensure success.</p><p>Source: Kaia<img src="https://academy-public.coinmarketcap.com/optimized-uploads/e7d1ce89599441a186565e88dbe50de2.jpeg" /></p><p>Smaller projects are effective because they validate market responses quickly. For example, the Tap to Earn (T2E) game launched through a Telegram mini-app. It was developed with a simple structure and low barrier to entry, which attracted users. This approach tested the concept and served as a key validation case for game companies. Additionally, Kaia recently collaborated with Line Next to build a mini dApp portal within Line Messenger. This collaboration offers an opportunity to test in a more diverse environment and user base.</p><h2 id="header-5"><strong>5. Closing Thoughts</strong></h2><p>For a Web3 game to succeed, it must retain its core essence as a fun game. Web3 technologies should serve as tools to enrich gameplay and offer new value to players. The key to success lies in understanding what gamers want and delivering it. Developers should avoid overfocusing on technical distinctions between Web2 and Web3. Achieving this will demand ongoing effort to balance innovation with practicality.</p><p>Dive deep into Asia&#39;s Web3 market with Tiger Research. Be among the 4,000&#43; pioneers who receive exclusive market insights. <a href="https://reports.tiger-research.com/p/saving-gamefi-eng" rel="noopener noreferrer nofollow">[Subscribe]</a></p><h2 id="header-6">&#x1f42f; More from Tiger Research</h2><p>Read more reports related to this research.</p><ul><li><a href="https://reports.tiger-research.com/p/openfort-web3-game-eng" rel="noopener noreferrer nofollow">Openfort: Opening New Horizons in Web3 Gaming</a></li><li><a href="https://reports.tiger-research.com/p/sea-web3-gaming-market-eng" rel="noopener noreferrer nofollow">Are Web3 Games Still Popular in Southeast Asia</a></li><li><a href="https://reports.tiger-research.com/p/t2e-boom-eng" rel="noopener noreferrer nofollow">From Clicks to Crypto: The Rise of Tap-to-Earn Games</a></li></ul><h2 id="header-7">Disclaimer</h2><p>This report has been prepared based on materials believed to be reliable. However, we do not expressly or impliedly warrant the accuracy, completeness, and suitability of the information. We disclaim any liability for any losses arising from the use of this report or its contents. The conclusions and recommendations in this report are based on information available at the time of preparation and are subject to change without notice. All projects, estimates, forecasts, objectives, opinions, and views expressed in this report are subject to change without notice and may differ from or be contrary to the opinions of others or other organizations.</p><p>This document is for informational purposes only and should not be considered legal, business, investment, or tax advice. Any references to securities or digital assets are for illustrative purposes only and do not constitute an investment recommendation or an offer to provide investment advisory services. This material is not directed at investors or potential investors.</p><h2 id="header-8">Terms of Usage</h2><p>Tiger Research allows the fair use of its reports. ‘Fair use’ is a principle that broadly permits the use of specific content for public interest purposes, as long as it doesn&#39;t harm the commercial value of the material. If the use aligns with the purpose of fair use, the reports can be utilized without prior permission. However, when citing Tiger Research&#39;s reports, it is mandatory to 1) clearly state &#39;Tiger Research&#39; as the source, 2) include the Tiger Research logo(Black/White). If the material is to be restructured and published, separate negotiations are required. Unauthorized use of the reports may result in legal action.</p>

Saving GameFi: Key Moves to Turn Web3 Gaming Around

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