BGA Report Highlights Play-to-Earn Games’ Progress

A new report from the Blockchain Game Alliance (BGA) reveals that play-to-earn games are moving toward mainstream acceptance despite facing significant challenges.

The report, titled “State of the Industry,” surveyed nearly 700 respondents from the play-to-earn sector, marking a three-fold increase from 2023’s report. According to the 64-page document, blockchain-based games are nearing mainstream adoption for the first time in their five-year history. The BGA notes that active monthly users for play-to-earn games have reached unprecedented levels and are expected to continue growing.

Several factors contribute to this newfound success, particularly a renewed focus on user experience (UX). The onboarding friction rate has dramatically decreased from 79.5% in 2023 to 53%, facilitating easier access for new users.

Historically, play-to-earn games required technical expertise, as gamers interacted with complex Web3 protocols. In response, gaming firms invested heavily in improving game interfaces, adopting a simple plug-and-play model akin to traditional games.

The report emphasizes that player empowerment is central to this growth. More resources have been allocated to UX and user interface (UI) enhancements, aiming for a seamless experience comparable to Web2 games. BGA President Sebastian Borget predicts ongoing investments in this area through 2025.

Rising adoption from traditional game publishers, such as Sony and Square Enix, has also driven these positive metrics. By engaging with layer 2 blockchain solutions, they are introducing play-to-earn gaming to traditional gamers.

The allure of in-game asset ownership and potential rewards are cited as significant factors behind the growing interest in Web3 gaming. However, many respondents highlight onboarding and cumbersome UX as the industry’s primary challenges. Misconceptions around their offerings being Ponzi schemes hinder onboarding, with 66.3% of developers acknowledging this issue.

Japanese Gaming Companies Collaborate on Web3 Gaming

A coalition of Japanese video game publishers is collaborating to improve the state of Web3 gaming under the Japan Cryptocurrency Business Association (JCBA). Leading members include Sega, Square Enix, and Konami, with virtual currency exchange Coincheck taking a prominent role.

This new gaming alliance will also incorporate various Web3 companies in Japan, such as COLOPL, Drecom, and BrilliantCrypto, enhancing the play-to-earn landscape.

The alliance is supported by prominent law firms like Anderson Mori & Tomotsune and Mori Hamada & Matsumoto, who will address the legal and regulatory challenges facing Web3 gaming firms, including accounting and taxation.

Operating as a subcommittee under the JCBA, Coincheck’s CEO, Tomoyuki Isaka, is positioned to lead, with Square Enix’s CEO, Keisuke Hata, serving as vice chair, alongside other executives from Drecom, Sega, and Konami.

The subcommittee aims for ongoing membership growth while focusing on integrating non-fungible tokens (NFTs) into gaming and exploring efficient blockchain solutions. Members bring substantial experience from prior engagements in play-to-earn gaming, learning from both failures and successes. Despite some setbacks, global interest in Web3 gaming is peaking, aided by improved interfaces and revenue potential for players.

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