Game7 says Asia is a hub for Web3 game development while U.S. dominates funding

Web3 game community Game7 said in a report that Asia Pacific has become the hub for Web3 game development while the U.S. dominates Web3 game funding.

In its State of Web3 Gaming 2023 report, the company analyzed the rapidly evolving landscape of Web3 gaming, delivering an analysis of key metrics, emerging trends, and insights from the industry.

The report uses primary research methodologies and encapsulates a broad array of data from over 1,900 blockchain games, 1,000 funding rounds, and 170 blockchain ecosystems, painting a vivid picture of the sector’s evolving dynamics.

Regional Development

The findings revealed that the Asia-Pacific (APAC) region leads the way in Web3 game development, with 40% of the game developers situated there. Notably, the United States maintained its momentum, contributing to 30% of the new Web3 gaming teams, while South Korea nearly doubled its contribution to 27%.

Key markets in the Web3 gaming landscape include South Korea, the United Kingdom, Singapore, Vietnam, and Australia, in addition to the U.S., collectively making significant strides in fostering Web3 gaming innovation. The ecosystem isn’t completely global, but it it is present in much of the world’s game development hubs.

Funding Trends and Genre Dynamics

Despite a post-correction slowdown in 2022, the Web3 gaming sector witnessed significant investment surges in 2023, totaling $19 billion in funding since 2018. This year alone, the funding crossed $1.5 billion, with a significant portion, over $800 million, dedicated exclusively to Web3 gaming.

Of this funding, specific gaming genres like sports, MMOs, RPGs, and action games captured substantial investments. Moreover, the report emphasized that the triple-A segment contributes only 6% of the market share, with indie-level and midsize projects accounting for the vast majority.

Networks, Platforms, and Blockchain Integration

The report highlighted the evolving landscape of blockchain networks. There has been a significant increase in the announcement of new networks targeting gaming, up by 40% from the previous year.

Network preferences leaned towards Layer 1 and Layer 2 solutions, with Ethereum-based networks and the Polygon ecosystem serving as the preferred destinations. Furthermore, distribution challenges continue to persist, with direct channels and native Web3 platforms often being the primary channels for game dissemination.

Epic Games’ embrace of Web3 games is evident, rising from two listed games to 69, marking an increasing trend in mainstream platform inclusion.

The Blockchain Wars and Evolution

A key revelation from the report was the considerable migration of Web3 games across different networks, notably to Polygon, Immutable, and Arbitrum. Polygon emerged as the hosting hub for most Web3 games, followed by BNB and Ethereum Mainnet, and Immutable stood as the leading Layer 2 gaming ecosystem.

As the blockchain frameworks gain traction, OP Stack emerged as the leading choice for creating new networks catering to gaming applications.

Conclusion

The State of Web3 Gaming 2023 report helps with the understanding of the current Web3 gaming landscape. George Isichos and Steven Chen, Core contributors at Game7, emphasized the need for credible, trustworthy research to aid game developers in making informed decisions.

Game7, a Web3 Gaming DAO, aims to accelerate the integration of blockchain-enabled gaming economies, guiding capital decisions, setting gaming standards, and supporting open-source software. The community strives to align the interests of players and developers, fostering the future of GameFi business models while prioritizing core game development issues over tokens and speculation.