Empire Newsletter Segment

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If we see a big resurgence in Web3 gaming, it’s probably going to look a lot different. And perhaps that’s for the best.

The Drop’s Kate Irwin noted a shift away from traditional video games with a “hidden” crypto element to an acceptance that Web3 games primarily attract crypto traders, or ‘degens’.

“Instead of converting Fortnite gamers, they’re now targeting non-gamers who are crypto traders, encouraging them to play games that essentially revolve around trading, adorned with a thin gaming layer,” Irwin explained.

Traditional gamers generally dislike crypto and show little interest in NFT-related games. This raises the question of why continue catering to an audience that isn’t interested.

In The Drop’s first newsletter, Irwin highlighted THNDR, a project pivoting to a casino-style game instead of play-to-earn.

This overall industry shift isn’t surprising, as it may have “overestimated” its potential. Games like Off the Grid may not attract an audience still wary of crypto, especially after FTX’s collapse. While those of us who remained or entered the crypto space post-FTX have moved on, it’s understandable that non-crypto folks need more time to catch up.

I’ll be watching carefully for signs of increased venture capital funding. More VC activity is a key indicator of which parts of crypto are regaining interest.