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GameFi: Prospects and Obstacles in 2024

Feb 16, 2024
GameFi: Prospects and Obstacles in 2024
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GameFi may mark a key period with the expected debut of several high-end Triple-A (AAA) projects. Could 2024 be the year when blockchain flips the established gaming market on its head?

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GameFi: Perspectives and Challenges in 2024 - news

GameFi Trends for 2024

GameFi projects have not always found approval among the mass audience of players. Negative reviews of the genre are often associated with the following characteristics:

  • with bland graphics;
  • ordinary game mechanics;
  • lack of entertainment.

Especially disappointing is the difficulty of supporting tokenized elements of GameFi games over a long period.

However, according to industry experts, GameFi has the potential for rethinking. Mark Long, head of Shrapnel — a developer of a AAA first-person shooter with a creator ecosystem, — predicts positive shifts for the industry. Despite the dubious reputation of blockchain games, he expressed the view that the next generation of projects will make critics reconsider their views.

One of the most anticipated events for me next year is the change in narrative around Web3 gamesLong noted in an interview with Cointelegraph

He emphasized that the current perception of blockchain games as failed products, oriented on pyramid schemes requiring a constant influx of new participants to maintain value, is more work than play.

Despite the criticism, Long expects that a number of "revolutionary" projects in development will change public opinion.

Two games I'm particularly excited to try are Dead Drop and Off The Grid.Long continued

Dead Drop is led by Dr. Disrespect, whose unique style of play is evident, and Off The Grid is noted for the talent of Neil Blomkamp, whose sci-fi worlds amaze with their uniqueness and specificity.

The CEO of Shrapnel also expressed interest in Wildcard, noting the development model that includes player asset ownership.

GameFi offers players from Web2 new exciting opportunities to participate in game creation.Long noted

Financial Aspects of Blockchain Games

Not all decentralized finance (DeFi) enthusiasts are optimistic about GameFi's prospects in the coming year. Oleg Fomenko, co-founder of the Sweat Economy platform, is highly skeptical of this sector.

Fomenko doubts GameFi's ability to compete with traditional games, considering the concept erroneous.

The belief that a game with Web3 elements automatically belongs to a separate GameFi category is rapidly fading.Fomenko shared in an interview with Cointelegraph

He mentioned that, despite initial enthusiasm for projects like Axie Infinity and StepN, the reality turned out to be disappointing, boiling down to pyramid schemes beneficial only to early adopters.

Aspect Axie Infinity StepN
Game Axie Infinity StepN
Genre Blockchain game (NFT, P2E) Mobile game with rewards for activity
Main Earnings SLP and AXS for battles and breeding GST for walking, running
Currency SLP (Small Love Potion), AXS (Axie Infinity Shard) GST (Green Satoshi Token), GMT (Green Metaverse Token)
Features Requires purchase of 3 Axies to start, Axies breeding, community management through AXS Requires purchase of NFT sneakers, earnings limited by energy levels

Fomenko emphasized that GameFi tokens are only valuable when the gameplay itself creates value, but in practice, this is not the case, making GameFi conceptually flawed.

Nonetheless, the founder of Sweat Economy sees potential in the broader Web3 sector, especially in the application of non-fungible tokens (NFT) in games.

GameFi: Perspectives and Challenges in 2024 - news

GameFi Reboot and Innovations

To leave a significant mark in 2024, GameFi needs to overcome the negative perception surrounding the industry. So believes Les Borsai, co-founder and strategy director at Wave Financial, managing assets worth over $1.5 billion.

On the threshold of 2024, GameFi is at a critical stage.says Borsai

It points out that the industry often faces criticism for focusing on blockchain and DeFi innovation at the expense of gameplay quality, causing alienation among the gaming community.

Borsay sees opportunities for the industry if it can leverage new technological trends such as artificial intelligence (AI) and digital twins, offering GameFi a chance for rehabilitation.

For GameFi to truly impact 2024 and bring players back, a fundamental reevaluation of the approach is necessary.notes Borsay

This requires more than just the use of cutting-edge technologies; it needs a harmonious integration of these elements into games that truly engage players. If GameFi can find this balance, it has a chance not only to evolve but to radically change perceptions of what is possible in games with integrated financing.

Challenges in Creating AAA Games

Creating AAA-class games is no small feat. The development and market launch of advanced gaming projects typically take from two to five years, and sometimes even more. For instance, the release of Grand Theft Auto VI is scheduled for 2025, a whole 12 years after the previous installment.

The prolonged development cycle highlights the difficulty of creating games, exacerbated by the need to integrate blockchain technologies.

Teddy Pender, a product manager in the zero-knowledge blockchain protocol Mina, believes that zero-knowledge technologies can simplify this process.

According to Pender, past Web3 applications were criticized for their primitive interface and low quality of gameplay experience. However, 2024 could be a turning point when GameFi applications start to compete with existing Web2 games. Thanks to zero-knowledge blockchains, developers can create games using zero-knowledge technologies, simplifying the complexity of GameFi applications.

Regardless of the successes of ZK-proofs or other technological innovations, the industry still has much to do before it can compete with traditional games.

In anticipation of important events, Rob Greig and Josh Jones, co-founders of the multiplayer online game Cornucopias, created on Unreal Engine 5, believe that 2024 will be a landmark year for the industry.

Jones believes the prospects for 2024 are great. He thinks that a situation is forming where personal ownership of game assets based on blockchain becomes not a novelty but the norm, opening unprecedented opportunities for users and becoming a turning point for developers and players.

Nevertheless, they believe the industry has not yet reached full maturity.

R. Greig expressed that the industry is at a crossroads. Looking ahead to 2024, it appears to be a year of testing for studios that are cautiously testing cryptocurrency initiatives before fully committing to them. Mass adoption in the gaming sector, in his opinion, is more likely to occur in 2025-2026.

By the end of the year, traditional and centralized models seem exhausted. Players seem ready for something truly new.concluded Long

Regardless of whether 2024 becomes a breakthrough year for GameFi, industry advocates like Long will be hoping that the next set of game releases will start to change the overall perception of the industry.

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