- Crypto gaming has seen solid funding despite the significant decline in blockchain gaming token prices.
- Venture capitalists – the “real OGs” – continue to bet big on major game studios, with experience and end product key factors.
- The Web3 gaming industry is in the “building” stage as the hype cycle fades and only the best will make it.
The history of play-to-earn games has witnessed a positive change, especially in 2022. The market is still reeling from the sudden rush of capital as well as users, which was followed by a significant drop in price. blockchain game tokens and a drop in the number of players.
And with the aftermath of the FTX debacle spreading to all sectors of the industry, the prospects of playing to win look bleak at first glance. But if you go under the hood, the data paints a different story: Strong funding this year has laid the groundwork for significant “build” in 2023.
For several months, the market has been receiving money thanks to a steady stream of major fundraisers conducted by Web3 game companies. UnCaged Studios was able to raise $24 million in August, contributing to the approximately $750 million raised by Web3 game developers in just one month.
The momentum continued through September, when Revolving Games successfully raised $25 million, and October, when Odyssey Interactive, Stardust, and SkyWeaver, respectively, raised $19 million, $30 million, and $40 million. In November, Thirdverse successfully raised $15 million in funding for Web3 plus virtual reality (VR) games;
The fall in asset prices and the enthusiasm of gamers in the field of Web3 games are completely contradicted by these figures. Despite players and tokens struggling, venture capitalists continue to bet big on the potential of blockchain gaming. Which of the studios will emerge victorious next year? To what end?
Venture capitalists: the real OG has all the power
It is important to note that most companies that have received money are required to hold seed or pre-seed tenders. This is a requirement that has been consistent across most fundraisers that have taken place over the past few months. They hold, on the other hand, the series As.
Without a shadow of a doubt, there are some significant deviations from the norm. A number of studios have completed their seed or pre-seed stages with great success. Despite this, the founding teams of these companies have significant gaming experience.
To illustrate, Ruckus Games is a video game development studio that was recently able to secure early stage funding in the amount of $5.5 million.
This suggests that venture capitalists are looking to studios that already have experience in the gaming industry, which is a departure from the early days of Web3 gaming.
During this first stage, a large number of Web3 game companies received substantial funds despite the fact that they did not have a distinct plan for the launch of their products or founding teams that have the demonstrated experience. necessary to get there.
In fact, the YOLO times of late 2021, as well as early 2022, are a distant memory at this point. Currently funded game development studios have already demonstrated some success in creating Web3 games.
Today, venture capitalists look even further into the future, between 5 and 10 years.
Simultaneously, there are other AI-enabled trading bots like the immediate edge, which have expanded the investment scope for venture capitalists while providing investors with a variety of investment options in terms of purchase of different digital currencies.
Crypto gaming: progress to be seen
When we consider these increases in conjunction with the longer-term trends displayed in Web3 games, investors may begin to see that certain patterns are emerging to influence the future of the industry.
The question now is, what kind of effect will all salary increases have in the years to come?
Mobile gaming is almost certain to receive significant attention. According to a report published by DappRadar in September, hyper-casual blockchain games for smartphones successfully transitioned over 1.7 million gamers from web2 gaming to web3 gaming in just one week.
It seems likely that Web3 gameplay will enter the “mainstream” as a result of the changes taking place now, and that over the next 5 years the overall score of the top 100 game studios will include studios that have strong elements of the blockchain.
This forecast is based on the observation that the aforementioned transformations are currently taking place.
In addition to this, there are a number of reliable trading support bots such as the immediate edge which allow traders to redeem their earned game points into crypto and use them for multi-purpose use.
What is the next step ?
Chances are we haven’t seen the conclusion of the large-scale funding rounds that have been taking place in the Web3 gaming industry over the past few months.
The hype cycle around Web 3 games has finally come to an end, and the market is currently in a “building” period. This time around, investors are looking for companies that have a more long-term view of their operations.
This shift in focus, coupled with the huge shifts that have taken place across the blockchain technology industry, will produce new momentum and opportunities for developers in the P2E market in 2023.
The expectations of actors and donors alike will have to be raised in order to sort the wheat from the chaff.
When it comes to determining priorities after the year 2023, the quality of work will have more weight than the quantity. Those who are able to develop the most outstanding games will emerge victorious in the end. The real game has just started NOW.