Collaborations between web3 gaming companies has led to a rise in participation interest, especially following the trend of monetization of in-game assets and tokens. One of such collaborations, announced earlier this week, is the coming together of two giant web3 companies, Immutable and Portal, to commit themselves to a partnership for the future of the web3 gaming ecosystem. Their partnership is being formed as a step to improve not just the distribution of web3 gaming products, but also to promote adoption, accelerate growth, and improve the quality of experience for gamers, both financially and for fun.
Therefore, in today’s article, we shall be discussing the evolution of web3 gaming landscape, how platform integration can impact user experience, as well as monetization strategies to boost players engagement and involvement.
In recent years, the web3 gaming industry has evolved, blending traditional gaming concepts with blockchain technology to create new models of ownership economy, and gameplay. Initially, this gaming ecosystem was fragmented, with many small, isolated projects struggling to gain traction beyond niche communities. However, as blockchain technology matured, web3 games developers are now integrating higher-quality gameplay experiences with blockchain elements, such as NFTs and decentralised finance (DeFi) features, offering a more seamless blend of entertainment and digital ownership.
Beyond just the concept of gameplay and ownership, the distribution landscape for Web3 games is also changing rapidly, as evidenced by partnerships such as the Portal x Immutable collaboration. Immutable is a Layer 2 platform focused on enabling scalable low-cost transactions for blockchain/NFTs games, while Portal is an emerging distribution platform for Web3 games. Such a partnership streamlines how Web3 games are distributed, by offering a comprehensive hub where developers can publish their games from diverse gaming niches, and players can discover new games based on their particular interest. These partnerships reflect a broader trend toward aggregation and centralization of Web3 gaming platforms that provide easier access to a wider variety of games. By creating centralised hubs for decentralised games, Portal and Immutable are tackling key challenges such as fragmented distribution, difficulty in reaching mainstream gamers, and high onboarding friction. This trend signals that the distribution of Web3 games is transitioning from niche marketplaces to more unified ecosystems, enabling smoother user experiences, greater visibility for developers, and easier access for mainstream audiences.
Seamless integration is crucial for Web3 gaming distribution as it simplifies the onboarding process and makes it easier for players to access blockchain games without needing extensive technical knowledge. This is particularly important when many users may be unfamiliar with blockchain technology, and are just starting out. When platforms like Portal and Immutable are integrated smoothly, players can create wallets, purchase or earn in-game assets, and engage with the game without encountering gaming complexities. This ease of access reduces friction and attracts both experienced crypto users and mainstream gamers. Additionally, seamless integration fosters a unified ecosystem where players can discover, download, and play games from a single hub, eliminating the need to navigate multiple platforms. This convenience helps increase player retention by offering a more cohesive user experience. Furthermore, integrated platforms facilitate interoperability across games, allowing players to use their digital assets, such as NFTs and tokens, in multiple titles. This enhances the value of in-game assets and provides players with greater incentives to invest in the ecosystem, improving user satisfaction and offering continuity across the gaming landscape.
In terms of monetization, seamless integration is essential for ensuring that monetization models tied to NFTs, play-to-earn mechanisms, and token-based economies function effectively without disrupting the user experience. Integrated platforms enable fast, efficient transactions, allowing players to buy in-game assets, mint NFTs, or cash out earnings smoothly. This reduces delays and transaction fees, making monetization more accessible and appealing to users. When players can interact with these systems effortlessly, they are more likely to engage with the game financially. Additionally, integrated platforms provide a secure environment for handling transactions, which is vital for building trust and confidence among players. With seamless integration, the risks of fraud or technical failures are minimised, encouraging players to invest in digital assets and participate in the game economy. Moreover, integrated platforms open up opportunities for monetization beyond the game by enabling secondary markets for digital assets. Players can trade or sell their NFTs and tokens seamlessly, enhancing the monetization potential for both themselves and developers.
The impact of seamless platform integration on user experience is profound. A frictionless experience where players can easily sign up, make transactions, and transfer assets without encountering delays or complications makes gaming more enjoyable and engaging. The smoother the interaction between platforms, the more likely users are to stay engaged, contributing to higher retention rates and greater player loyalty. Additionally, seamless integration makes Web3 games more accessible to a wider audience by lowering the barrier to entry. By simplifying the complex mechanics of blockchain technology, these platforms make it easier for non-crypto users to participate, expanding the game’s reach beyond niche communities and into mainstream gaming. This ease of access also contributes to increased player retention, as users who have a smooth, satisfying experience are more likely to continue playing and investing in the game.
Innovative monetization strategies are transforming the way games generate revenue, while providing players with more ownership and financial incentives. Unlike traditional games that rely on in-game purchases, subscriptions, or ads, Web3 games leverage tenets of blockchain tech, DeFi , and NFTs to create new ways for players to engage and earn. Let us look at some of these models and see how they impact user engagement.
The play-to-earn (P2E) model is a model where players earn tokens or NFTs, which may hold real world value, by completing in-game activities, making games more than just entertainment. For example, Axie Infinity— a P2E game, reached 2.7 million daily active users, and generated >$1.3 billion in revenue by 2021. Players could trade these tokens for real currency, effectively turning gaming into a source of income. Such models keep users engaged over the long term, creating an effect where players benefit financially and help drive the game’s popularity by introducing new users.
NFTs are central to modern Web3 gaming’s monetization strategy. Players can own, trade, and sell in-game assets such as skins, weapons, or characters as NFTs, providing them with true ownership over their digital assets. This has spurred a tremendous growth within the NFT gaming market, accounting for 20% of all NFT sales in 2021, worth > $5.17 billion in transaction volume. This model not only incentivizes players to remain invested in the game but also extends the lifecycle of these in-game items.
DeFi features are becoming increasingly integrated into Web3 games, offering players more ways to earn and invest. And with governance token as a common means of reward, often for “early players”, this model can see DeFi mechanisms like staking, liquidity pool provision, etc, as a means for players to continually be incentivized. As of 2023, over $45 billion in total value were locked in the gaming sector in staking and yield farming. This shows players interest in benefiting from additional avenues for monetization.
These monetization models clearly have certain impact on user retention and engagement, which makes it a necessary feature for every web3 gaming project particular about their longevity and the sustainability of their ecosystem.
In conclusion, the Web3 gaming landscape is evolving from fragmented, niche experiences into more unified and scalable ecosystems. Partnerships like the one between Portal and Immutable are reshaping how games are distributed, making it easier for developers to reach new audiences. By focusing on user experience, leveraging new distribution channels, and building interoperable, scalable games, developers can navigate these shifts effectively and tap into the growing Web3 gaming market. And beyond product distribution and marketing, user retention and engagement is also mostly impacted by incentivization and monetization, which makes them a necessity for successful onboarding.
Finally, by enabling interoperability and fostering a well-integrated ecosystem, seamless platforms enhance the perceived value of in-game assets, encouraging players to invest in the game economy and deepening their overall engagement.
