Understanding and evaluating the struggles of the fast-paced blockchain gaming industry is pivotal to achieving success. Working on solutions that combat these issues is the only real choice for a game development studio to build a solid product with a future.
After a close evaluation of the crypto industry and an in-depth analysis of the target audience and competitive landscape, we have realized that there exists a number of complexities in this domain that one must navigate through in order to foster its development. The most predominant one is; fraudulent activities that have severely impacted the credibility of the industry. Other concerns revolve around a loss of interest from participants or initial believers which leads to their exit from the project.
Many projects have come into the market as a way of cash-grabbing - with products that have a weak game design ultimately producing an undesirable product which in turn leads to a fall in demand. Most projects fail to describe a long-term plan in their whitepaper, mostly due to their short-term vision limited to the initial NFT sales. The ones that do have a well put whitepaper don't have enough proof of work to validate that their whitepaper is not just a list of empty promises which might never see the light of the day.
Listed below are a some of the problems that the block-chain industry is currently suffering from.
The crypto market is a haven for scammers and fraudsters. According to Time magazine, scammers stole $14 billion in crypto scams in 2021 alone. This has happened by misleading the participants and falsely committing to develop a product or game that had a weak whitepaper. Many investors still invested as their returns are much higher if a project goes through and the value of their investment (projects coins) substantially increases over a given period of time.
It is safe to assume that most gaming projects in the blockchain space are investor traps with the aim to misappropriate the users’ money. Ultimately the token value of such projects falls to zero.
As the player base is the heart and soul of any game's community, addressing the problems the players face is key to any game's success. After researching popular games, here is a breakdown of the problems faced by the players in particular:
- In order to play the game, players have to pay an "entry fee", making the game "high risk" if it is a scam project. This entry fee also becomes a barrier for new players to enter the game when it goes up due to the token price surge (such was the case with Axie Infinity).
- The core gameplay is focused on the earning aspect rather than making it fun, which makes the overall experience poor.
- A handful of game studios offer either a mobile version or a desktop version, but not both.
- Many of the existing blockchain games encounter high gas fee rates which in turn burdens the players.
- Players cannot use their stake tokens or NFTs to perform in-game tasks once they are added to the staking pools.
It is challenging for blockchain game developers to enter the traditional game market due to several reasons:
- Many traditional games do not support both the mobile and desktop platforms in parallel.
- There is a limited integration of payment methods/gateways in traditional games.
- Concepts such as tokens and NFTs are alien to many traditional gamers. Most of them find it complicated and intimidating.
- Popular game stores including App Store and Google Play ban games that feature crypto/NFT exchanges.
On top of that, the blockchain game itself carries potential risks such as:
- The inflation of the tokens and NFTs can trigger the decrease and collapse of the in-game economy. Users end up leaving the game quickly when the crisis peaks out.
- The game publishers encounter a real headache of high gas fee rates.