Gaming industry poised for big churn with new breed of developers shifting to ‘play-generate value-earn’ model to boost user engagement

Leading game developers such as Farcana, billed as one of UAE’s biggest GameFi studios, Playnance and TapSwap, developer of one of the most viral games on Telegram, are experimenting with a more holistic approach, using all metasystem, to develop new games to improve the competitive aspect of the game, besides ensuring long-term user sustainability.

More importantly, the new breed of game developers is using Blockchain as a tool to enhance the gaming experience for users, rather than deploying the technology to add more complexity to games.

“We don’t want people to play our game just to earn a couple of bucks and hate what they are playing while doing so,” Ödül Küçük, Global Publishing Director at Farcana, told Arabian Business.

“That’s why we are calling our game “Bitcoin Shooter.” The reason behind this is that we are trying to develop the best competitive shooter experience for players – not the most profitable one – and this positioning implies multiple levels of competition,” he said.

Küçük said the company’s main goal is always having the best player experience as a competitive shooter game, and all the rest comes after that.

Industry insiders said the new gaming model is fast gaining traction among users, with Blockchain games leading the Web3 industry, accounting for 28 per cent of all the decentralised application (dApp) activity, attracting 2.8 million active wallets daily, as estimated by DappRadar.

The second quarter of 2024 also marked the best quarter since Q3 2022 for blockchain gaming investments, as $1.1 billion were raised, posting a whopping 314 per cent increase since the previous quarter.

Blockchain should just be a tool to enhance gaming experience

Other industry experts such as Yaniv Baruch, COO of Playnance, said Blockchain can be a tool to enhance gaming experience for users, rather than making playing more complex.

“For example, players already spend money on dozens of skins in their many games, but they can’t bring those skins outside of the experience.

“Instead, the game developers take all the profits,” Baruch said.

He said through blockchain tech, players have complete control over those skins and can sell them or bring them to other games.

“It provides players with real-world value for their time and effort,” the Playnance senior executive said.

He said if players view blockchain-based games as a new form of gaming instead of just “adding complexity” to them, they will have a much easier time understanding the benefits.

Baruch said players also should be open to innovation in technology, just as they’re open to innovation in their gaming mechanics.

Küçük said developers like Farcana are only just giving players new opportunities with all these Web3 mechanics, but are not chasing after “Web3 players”.

“The players we want to have in our community are people who see games as an important part of their lives, enjoying their time while mastering the game, competing in the best possible way, and showing everyone that they are good at what they do,” he said.

The Farcana senior executive said as game developers, they should be aiming at that, first and foremost.

“If we go in a ‘play-to-earn’ direction, then we put the profit first, and I don’t think this is the right thing to do,” he said.

Küçük said in the end, the highest level of the competition gives players rewards backed by Bitcoin.

“Our goal is to democratise and redefine the “pro player” concept with the support of blockchain technology,” he said.

Maintaining player number is the key

Industry experts said some of the currently leading games, including tapping games – which follow the tap-to-earn model, and which have become the breakthrough of 2024 – might prove unsustainable in the long run.

“Tap-to-earn games won’t survive if tapping is all they offer,” Naz Ventura, founder of TapSwap, a viral Telegram game with 67 million players, told Arabian Business.

He said tapping mechanics enabled reshaping the cryptocurrency landscape, and helped games onboard millions of people in record time.

“For instance, TapSwap amassed 67 million users in about 6 months with zero investment in marketing,” Ventura said.

He said the virality of tapping also allowed the company to “hack” user acquisition and gain new insights into what projects need to do to grow their audience.

“Tapping games facilitated the entry of hundreds of millions of novices into the crypto world – for many players, this will be their first airdrop and their first tokens ever.

“However, no project can conduct a second airdrop – so if users don’t see additional benefits, they are likely to abandon the game,” Ventura said.

Küçük said their company is targeting shooter players and competitive hardcore players with its new game ‘Bitcoin Shooter’.

“The players we want to have in our community are people who see games as an important part of their lives, enjoying their time while mastering the game, competing in the best possible way, and showing everyone that they are good at what they do,” he said.

Küçük said their company is also continuously testing its game with pro and hardcore players to improve the gameplay.

“We want to build a game for generations and really want to keep them in the Farcana Universe for decades to come, so in this long journey, retention is not a daily thing for us – we are looking deeper into this concept and trying to maintain a healthy relationship with them for a long period of time,” he said.

Web2 players will be forced to graduate to Web3

Industry insiders said Web2 games will have to implement Web3 elements to compete with Web3 games when they see that players are increasingly switching to games with Web3 perks as they realise that they are better than traditional games.

“This is the early phase of Web3, and very soon, everyone will see this is the future of gaming.

“A few big gaming companies, like Ubisoft, have already started tipping their toes in Web3, and I believe most of the others will follow. Change is inevitable, and this is definitely the next big thing in the gaming industry Küçük said.

He said talking from a numbers perspective, companies definitely need to see 5-10 million MAUs (online gaming mouses) to say they are there as an industry, but maintaining these numbers is the key.

“Even with smaller numbers, a strong retention rate and players genuinely enjoying and integrating these games into their lives will demonstrate that Web3 has reached its first major milestone,” Küçük said.

The Playnance COO said to be sustainable, a Web3 game needs a consistent player base of millions per month.

“The only way to keep a player base is by providing a game equal to or better than the best Web2 titles.

“This matters not only on the gameplay front but also on the financial front,” he said.

Baruch said games can’t have microtransactions or blockchain transaction fees that rip players off, and it can’t focus too much on pay-to-win mechanics.

“There needs to be a balance,” he said.