Game7 has released a thorough report on Web3 gaming’s current state. The research report includes insights into fundraising, competitive dynamics, and blockchain networks. It is based on 1,900 blockchain games and a thousand funding rounds from 2018 through 2023.
The study is available for free download here. Game7 is a booster group that bills itself as “a community that brings builders and game developers together to accelerate the adoption of Web3 gaming.”
Understanding the Web3 Gaming Evolution
The report scrutinizes every aspect to capture the pulse of the Web3 gaming space, which has grown significantly over the past six years. Using primary research methodologies, Game7 scrutinized data from more than 1,900 blockchain games, more than 1,000 funding rounds, and 170 blockchain ecosystems to paint a complex picture of this rapidly expanding field.
Asia-Pacific Leads, US Maintains Momentum
The report’s findings reveal that the majority (40%) of Web3 game developers are located in the Asia-Pacific region, with North America coming in second (30%). Half of the new games released on the market this year come from Asia.
This year, South Korea contributed 27% of Web3 gaming teams, nearly double the previous year, while 30% of new teams came from the United States.
Investment In Web3 Games Surges
The Web3 gaming industry experienced a significant increase in investment in 2021 before reaching a plateau similar to pre-bullet levels in 2023. Since 2018, $19 billion has been invested in Web3 gaming-related projects.
Despite the market correction in 2022, the Web3 games market is still expanding, albeit slowly. By Q3, over $800 million was allocated to Web3 games alone, with the remainder spread across various verticals. As of the third quarter, Web3 gaming projects have received more than $4 billion in funding in the United States, including France ($900 million), Canada ($670 million), Singapore ($670 million), and Hong Kong ($600 million). $60 million).
The most funded game genre since 2018 is sports.
Web3 AAA Games
While indie and mid-sized projects accounted for 94% of the market, AAA games were still underrepresented, accounting for only 6%. Role-playing games, action games, strategy games, and casual games dominate the development landscape, with the majority of games adopting a free-to-play model (69%) and 26% requiring a specific NFT to access.
The report highlights that there will be 81 new gaming blockchain networks in 2023, a 40% increase from the previous year. Most adoption favors general-purpose L1 networks (81%) and application-specific networks (43%), with Ethereum-based solutions continuing to lead the way.
Distribution issues and blockchain wars. About 60% of Web3 games rely on direct channels or the underlying Web3 platform for distribution.