In the previous bull cycle, a considerable number of Web3 games were hastily developed and lacked an essential ingredient: fun, according to Chris Watkins, the co-founder and CEO of Digital Arms, a non-fungible token (NFT) marketplace. As a result, these games faced ultimate failure. Watkins further highlighted that the few games that managed to gain traction relied heavily on the monetary aspect, which he believes is an unsustainable model.

In his written responses to Bitcoin.com News, the CEO of Digital Arms emphasized that the industry has redirected its attention towards developing games that offer unique experiences and advantages surpassing those of traditional gaming. According to the CEO, this shift signifies that Web3 gaming is in its nascent stages and is not merely a fleeting trend, contrary to the assertions of some critics. Watkins further stated that the potential of Web3 gaming is far from being fully realized and holds promising prospects for the future.

Regarding the reported partnership between his platform and the firearms industry, the CEO revealed that the involvement stemmed from the fact that several of Digital Arms' founding members, including himself, have prior experience in the gun industry. Watkins also expressed his views on the potential impact of Apple's augmented reality (AR) headset, highlighting its potential to revolutionize the Web3 gaming sector. He believes that the introduction of this technology could be a transformative development with far-reaching implications for the industry.

Here are the responses provided by Watkins to the questions posed to him via Telegram.

Bitcoin.com News (BCN): What advantages do gamers gain when they purchase non-fungible tokens (NFTs) as in-game assets compared to traditional in-game assets?

Chris Watkins (CW): The primary benefit lies in the genuine ownership and traceability of the assets. With the expansion of esports and the increasing fanbase of popular leagues, the potential to purchase and trade firearms used by your favorite professional gamers is just one example of the numerous thrilling use cases.

BCN: As per a recent report from Polaris Market Research, the global market size of blockchain gaming is projected to surpass $1 trillion by 2032, experiencing significant growth from an estimated $5.4 billion in 2022. In your opinion, what are the crucial emerging trends that will shape the future of Web3 gaming?

CW: An emerging trend that holds prominence is the convergence of real-world brands with the gaming landscape, facilitated by advertising rights or the inclusion of branded playable assets. Blockchain technology plays a vital role in enabling this synergy, as it opens up new avenues of revenue for game developers through NFT licensing rights. As this trend evolves, I anticipate a significant increase in games seamlessly integrating NFTs to the extent that players may not even be aware they are purchasing and trading these distinct digital assets.

BCN: In recent years, the Web3 gaming sector has explored various models like play-to-earn and play-and-earn to attract players. While some Web3 games have seen success, we haven't discovered a sustainable model that appeals to both players and game developers. What convinces you that Web3 gaming is more than just a passing trend?

CW: During the previous bull run cycle, games were frequently rushed and lacked the fundamental element of enjoyment. The few games that did gain popularity primarily relied on the attraction of monetary gains. However, this model is not sustainable as it hinges on a constant influx of players willing to spend. Nonetheless, I'm witnessing a growing number of emerging game developers who are crafting high-quality, engaging games with integrated play-to-earn components. There is a renewed focus on creating games that are genuinely enjoyable to play and offer unique experiences and advantages that traditional gaming cannot replicate. From my perspective, Web3 gaming is only just beginning, and we can expect exciting times ahead!

BCN: It has been reported that Digital Arms, your company, is the exclusive NFT marketplace where gamers have the opportunity to purchase, sell, and personalize licensed digital firearms from renowned brands worldwide. Can you elaborate on why the firearms industry opted for Digital Arms and clarify the reasons behind their inability or ability to sell their intellectual property (IP) on other NFT marketplaces?

CW: With more than 25 years of combined experience in the firearms industry, the founding members of Digital Arms and I have established strong relationships with leading brands. These brands have entrusted us to navigate them through the realm of blockchain and digital collectibles. We hold their brand in high regard and ensure that our offerings align with their company image. Our unique understanding of the firearms industry sets us apart from other marketplaces or platforms. Hence, the necessity for a specialized marketplace like Digital Arms. After all, when it comes to purchasing firearms, you wouldn't typically turn to platforms like eBay or Amazon, would you?

BCN: Customization as a means of self-expression has been a longstanding aspect of video games. It appears that the Web3 gaming realm presents an enticing opportunity for the firearm and hunting industries. However, considering the strict regulations surrounding the firearms industry in many parts of the world, what obstacles do you believe these brands encounter when incorporating digital firearms into Web3 games?

CW: Preserving a favorable public perception is a crucial aspect for the firearms industry. The challenge lies in collaborating with game developers to ensure that their products and branding are presented in a respectful manner. As for firearm regulations, this is where the exciting part begins. Since we are dealing with digital assets rather than actual firearms, gamers in restricted regions can now possess a representation of the brand. Digital Arms is creating limited edition, authentic IP-licensed NFT digital collectibles meticulously crafted from the original 3D CAD files utilized in the manufacturing process of the firearms.

BCN: In your opinion, do you believe that Web3 gaming has the potential to become a lucrative source of revenue for firearms manufacturers, or even physical goods brands in general, in the foreseeable future?

CW: Absolutely, without a doubt! It is already taking place, and it extends beyond firearms to encompass various in-game items and equipment as well.

BCN: Apple recently introduced an innovative augmented reality headset called Apple Vision Pro. In the event that these devices gain popularity among gamers, what potential role do you envision them playing in the advancement of the Web3 gaming industry?

CW: Apple is certainly at the forefront of innovation! This advancement is set to revolutionize the gaming landscape, transforming how we engage and participate in games moving forward. Augmented reality has the potential to generate immersive gaming experiences, and when combined with digital items like our firearm NFTs, it opens up a realm of boundless possibilities.