Author: cointelegraph
According to a survey by the Blockchain Game Alliance, 42% of respondents believe that player reward models are the biggest advantage in attracting new users. However, as the GameFi industry evolves, blockchain games will face multiple challenges by 2025.
Tobin Kuo, CEO of Seraph, stated in an interview with Cointelegraph that maintaining player engagement, adopting new technologies, and building a sustainable in-game economy are obstacles that GameFi must overcome to remain competitive.
Tobin pointed out that over 60% of players quit Web3 games within 30 days. He believes that the lack of long-term incentives and poor game mechanics are the main reasons Web3 games struggle to sustain growth. He told Cointelegraph:
“With the accelerated development of the attention economy, projects must prioritize player-centric design, focusing on immersive storytelling, skill-based rewards, and game mechanics that go beyond the ‘profit-first’ model, rather than relying on trends to attract attention.”
In 2025, developing better blockchain games will also require the integration of emerging technologies, such as generative AI, to enhance player experience. Tobin noted that GameFi projects that fail to adopt new technologies in a timely manner typically see a 30%-40% drop in player retention.
According to a survey of the Web3 gaming industry, these issues are considered the biggest challenges facing the GameFi sector in 2024. Source: Blockchain Game Alliance
Building a Sustainable In-Game Economy
Tobin emphasized, “An unstable in-game economy is a major reason for project failures.” He believes that building a sustainable token model for Web3 games that controls inflation and is based on data-driven player rewards is key to maintaining player retention.
He further explained, “Dynamic loot distribution, staking-based rewards, and player-controlled economic strategies through decentralized autonomous organizations (DAOs) could become best practices in GameFi development.”
Taking Hamster Kombat as an example, this clicker game made headlines in July, surpassing 300 million users in less than five months. However, after experiencing what is considered the largest token airdrop in cryptocurrency history, the game's active user count plummeted by 86%. As of November, the game's player count had dropped to just 41 million, a significant decline from the summer peak of 300 million.
Current State of the Blockchain Gaming Industry in 2024
The Blockchain Game Alliance recently released the "2024 Industry Status Report," surveying 623 professionals in the Web3 gaming industry.
The report shows that about 53% of respondents believe that poor user experience and complex user interfaces are the biggest challenges hindering new players from entering Web3 games.
Industry insiders outlined the main issues facing the GameFi sector. Source: Blockchain Game Alliance
An early report from BGA indicated that 10% of users abandon entering Web3 games due to the complexity of setting up a crypto wallet.
At the Blockchain Futurist Conference held in August, Long Do, CEO of Anomaly Games, stated that abstracting blockchain functionality and allowing players to interact with the chain without realizing it is key to driving adoption.
Additionally, BGA's 2024 report showed that 33% of respondents believe that poor gaming experience is one of the top three challenges currently facing the industry.
According to a survey conducted by OnePoll earlier in 2024, among over 2,000 adults, most surveyed players lack understanding of blockchain games.
The survey revealed that 52% of respondents did not know what blockchain games are, while another 32% stated they had heard of blockchain games but had never played them.
Conclusion
As the GameFi industry rapidly evolves, changes in player demand and market competition drive developers to continuously innovate and optimize. In 2025, how to maintain player engagement, introduce new technologies, and establish sustainable economic models will be key factors determining the success or failure of GameFi projects.
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