Web3 gaming has experienced a remarkable surge in popularity over the past three years, and it is projected to reach approximately $65.7 billion by 2027, a significant increase from the $4.6 billion recorded in 2022. While the initial Web3 games that gained global attention were play-to-earn titles like Axie Infinity, it's important to recognize that gamers around the world engage in gaming for more than just passive income.

Many gamers are drawn to gaming because it offers them a way to unwind, relieve stress, and spend quality time with friends and family. In essence, games should be enjoyable and entertaining.

Although play-to-earn models have disrupted the blockchain industry and attracted numerous users to the Web3 space, there is a need for Web3 games to shift away from this model and embrace a play-to-earn philosophy that prioritizes the user experience above all else.

Web3 gaming has alienated many traditional gamers and developers due to subpar user experiences and a lack of in-game creativity. In simple terms, there is a prevalent perception that Web3 games are not fun. Navigating the payment mechanisms can be challenging, and gas fees are often added to the cost of non-fungible tokens (NFTs) or in-game assets.

Despite initial concerns, there is room for optimism in Web3 gaming. To attract traditional gamers, games should shift focus from play-to-earn to core gaming elements: immersive worlds, storytelling, community, and skill development. Prioritizing fun allows for innovative features like in-game asset ownership.

Web3 can capitalize on in-game assets' value through NFTs, enabling trade with creator royalties. Player governance and community building are strategies to engage traditional gamers.

Positive signs include a 12% wallet increase and $600 million in venture capital for Web3 games in Q3 2023. The goal for Web3 games isn't replacing traditional gaming but creating a unique space with user asset ownership and active participation.