High expectations for the Web3 game industry in 2024 = Delphi Digital report

big room for growth

Delphi Digital, a crypto asset (virtual currency) research company, has released a 2024 forecast report for the Web3 gaming industry. He expressed the view that it is likely to be a year of great promise for the game industry, given the growing interest in the Web3 market by major game companies and the active development of infrastructure.

While everyone is busy packing Christmas gifts, I keep reading research to stay well-positioned for 2024.

Here are 20 key insights from @Delphi_Digital‘s report “The Year Ahead for Gaming 2024” ↓ pic.twitter.com/JQwIQeNcMm

— Stacy Muur (@stacy_muur) December 24, 2023

In Japan, Square Enix’s blockchain game “SYMBIOGENESIS” has been launched, as well as Drecom’s “Eternal Crypt – Wizardry BC -“, Colopl’s “Brilliant crypto”, Konami’s “PROJECT ZIRCON”, etc. Several major titles being developed by listed companies are pending.

connection:Square Enix’s NFT project “Symbiogenesis” officially starts on the 21st

Overseas, the second blockchain game “Gas Hero” developed by Find Satoshi Lab (FSL), which develops and operates the explosively popular fitness app “STEPN”, is scheduled to launch on January 3rd. It is also attracting attention from Japanese investors.

Announcement from Find Satoshi Lab

Get Ready for a New Era of Gaming!

We are thrilled to announce the official launch of Gas Hero, a groundbreaking Web3 game that blends intricate strategy and vibrant social interactions in a dynamic virtual world.

Mark Your… pic.twitter.com/7SUeaSaxkd

— johnny (@johnnyL37020770) December 27, 2023

According to a study by Delphi Digital, the market capitalization of Web3 game projects will hover between approximately $4 billion and $7 billion (570 billion yen to 1 trillion yen) in 2023, which is expected to rise in 2022. 86% below the all-time high.

Based on this point, he argued that it is clear that the potential for market growth is large when compared to meme coins such as DOGE, which have no practical utility.

According to an analysis by market data site CoinGecko, 29 companies, or 72.5%, of the world’s top 40 game-related listed companies by market capitalization are exploring businesses in the Web3 area.

Of these, seven major companies, including Take-Two Interactive (US), Nexon (Korea), Bandai Namco (Japan), Konami (Japan), Krafton (Korea), Square Enix (Japan), and Ubisoft (France), are actually We are developing a blockchain game (BCG).

The main game titles and blockchains used are as follows:

• Sugartown (Take-Two: Ethereum)
• maple story(Nexon: Polygon)
• Ryuzo(Bandai Namco: Oasys)
• Project Zircon(Konami: Chain not yet announced)
• Overdare(Krafton: Settlus)
• SYMBIOGENESIS(Square Enix: Polygon)
• Grimoria Chronicles(Ubisoft: Oasys)

connection:29 of the world’s top 40 game companies are exploring the Web3 field

Key markets and game-specific networks

According to the report, BCG’s top market is the Philippines, followed by Nigeria and Pakistan. Other markets that are attracting attention include Singapore, Vietnam, South Korea, Hong Kong, China, and the United Arab Emirates, which have a large number of BCG game users.

Delphi points out that improved onboarding processes and loosened regulations are making the mobile game development environment more “attractive” for developers. The number of networks specializing in games is increasing year by year, and in 2023, 76 new networks, including L1, L2, and app chains, have been created.

Additionally, in 2023, BCG generated 23 times more on-chain transactions than DeFi protocols on average, making it a key focus for gaming-specific networks as well as subnets and other blockchains. He argued that it was obvious that this would happen.

Due to the factors mentioned above, the report predicts that competition among chains to acquire users will intensify by 2024.

BCG profitability

BCG is experiencing active development as major companies enter the market, but it seems that there are still many issues with user acquisition and profitability.

According to the report, only more than 5% of playable BCGs have more than 100 users per day in terms of wallets. On the other hand, the financial incentives for acquiring users and the rising cost of launching and operating Web3 games are said to place a heavy financial burden on BCG game developers.

As an example, the report cites a case study in which user acquisition costs for smartphone-based hyper-casual games are 77% higher than for traditional games.

He pointed out that in order to achieve profitability and scale, it is necessary to expand the monetizable user base and increase the spending of enthusiastic users (whales).

connection:Three-quarters of Web3 games fail = CoinGecko report

Featured projects

Delphi named the NFT game “HYTOPIA” and the proprietary blockchain “Ronin” from Sky Mavis, the game studio behind Axie Infinity, as the most promising projects and blockchains for 2024.

connection:NFT game “Axi Infinity” developer revamps Ronin network, partners with 5 game studios

He also points out that artificial intelligence (AI) generation means will bring a completely new player experience to the game. The following five projects are noteworthy in the area where blockchain games and AI intersect.

• Parallel: Trading Card Game
• Today: Social simulation game
• AI Arena: PvP fighting game
• GeppettoAi: 3D model/video production from text
• Avalon: Massively multiplayer online RPG

connection:AI companion game “Sleepless AI”, Binance’s new virtual currency launch pool BNB rises more than 10% from the previous day

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