GameFi opportunities and challenges in 2024

GameFi entrepreneurs need to have the perfect game plan to make a comeback in 2024.

GameFi is shaping up to be a landmark year, with multiple triple-A (AAA) game releases expected. Will 2024 be the year when blockchain shakes up the traditional gaming market?

GameFi games don't always have the best reputation among the general gaming public. Critics of the genre pointed to mediocre graphics, lack of creativity in game mechanics, and a general lack of fun. Even more irritatingly, the tokenized elements of GameFi games tend to be difficult to sustain over the long term.

But if industry experts are to be believed, GameFi may be in for a complete makeover. Mark Long, CEO of Shrapnel, a AAA first-person escape shooter that includes an ecosystem of creators, is one of the voices predicting positive developments for the industry. Lang is quick to admit that blockchain gaming currently has a very mixed reputation, but believes the next wave of games will confuse critics.

"One of the biggest things I expect to happen next year is the shift in narrative around Web3 games," Long told Cointelegraph. “Let’s face it, the perception of the genre is that blockchain games suck. Driven by Ponzi scheme mechanics and requiring a constant influx of new players to substantiate any accrued value. They are not played to make money ; but to make money. They work while they play."

While Long is picky about current GameFi games, he predicts several " "Breakthrough" games will change public perception.

"Two games that I really enjoy playing are Dead Drop and Off The Grid," Long said. “Dead Drop is creatively led by Dr. Disrespect, with the influence of a man who plays by his own rules right up front […] Off The Grid has my favorite film director Neil Blomkamp driving the design, and it looks It's hot. To me, Bloomkamp's world is a unique, grounded take on science fiction that's also surprising in very specific ways."

Shrapnel CEO also named Wildcard as another game he's looking forward to, citing a development model that includes player ownership.

"GameFi gives Web2 gamers an exciting new opportunity to do what they've always wanted to do: be a part of game creation, "Long said.

A simple Ponzi scheme

Not all in the field of decentralized finance (DeFi) Everyone is so excited about GameFi's prospects for the coming year. Oleg Fomenko, co-founder of mobile money-making platform Sweat Economy, is highly skeptical of the industry.

Fomenko believes that the differentiated GameFi industry will never be able to challenge traditional games, and he believes that the entire concept is wrong.

Fomenko told Cointelegraph: "The belief that games that simply incorporate Web3 elements automatically fall into GameFi's unique category is quickly disappearing." "While Axie Infinity and StepN initially let We believed they created a whole new gaming world where players could make money and live off their own earnings, but it turned out to be a temporary, disappointing blip. These were just Ponzi schemes benefiting early adopters and they knew it When to jump ship early."

Fomenko said the GameFi token would only capture value "if the game itself generates value," but "that's not the case." . Therefore, GameFi itself is flawed.

Even so, the Sweat Economy founder does see some positives in the broader Web3 landscape. Fomenko continued, "Games with Web3 elements will flourish, and I'm excited to see further innovation in this space, especially with the use of non-fungible tokens (NFTs) in games."

GameFi's Redemption Arc

For GameFi to make a significant impact in 2024, it will need to overcome the negative perceptions surrounding the industry. That’s the verdict of Les Borsai, co-founder and chief strategy officer of Wave Financial, an investment adviser with more than $1.5 billion in assets under management.

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Borsai said: "Looking to 2024, GameFi's development is at a critical juncture." "Frankly, its current state is not impressive, and often It has been criticized for prioritizing blockchain and DeFi gimmicks over true game quality. This approach has caused a backlash from the gaming community, who feel that the essence of the game is obscured by obvious monetization strategies and unappealing mechanics. ”

Borsai believes that the industry will face opportunities if it can take advantage of other new technology trends such as artificial intelligence (AI) and digital twin technology. In Borsai's view, these present "an opportunity for GameFi to redeem itself."

Borsai said: "If GameFi wants to make a real impact and win back gamers in 2024, it will need to fundamentally re-evaluate its approach." "It It has to go beyond advanced technology; “It needs to seamlessly integrate these elements into a game that players actually want to spend time playing. If GameFi can achieve this balance, it has the potential to not only mature, but significantly change the way we think about integrated financial games. ”

A complex business

Building a AAA game is no easy task. Cutting-edge games often require Two to five years to develop and bring to market. Some games have even longer waits. For example, Grand Theft Auto VI is scheduled to launch in 2025—a full 12 years after its predecessor.

< p style="text-align: left;">The lengthy development process illustrates the difficulty of game development, even without the added complexity of integrating blockchain technology.

Teddy Pender, technical product manager of zero-knowledge (ZK) native blockchain Mina Protocol, believes that the implementation of zero-knowledge technology may simplify the process.

"In the past , Web3 gaming applications have been criticized for crude user interfaces and poor gaming experience. However, 2024 will be a tipping point when we see GameFi applications start to look and feel like real competitors to the existing Web2 gaming industry. Pender told Cointelegraph. “By using the ZK native blockchain, developers can build games that leverage a zero-knowledge framework, reducing the complexity of GameFi applications. ”

Whether ZK-proofs or other technological solutions can help push the industry forward with new vigor, some believe the industry is looking to catch up with traditional There's still a long way to go before the game.

A little time

Cornucopias is a multiplayer online video game built on Unreal Engine 5, and its co-founders Rob Greig and Josh Jones agree that 2024 will be a landmark year for the industry.

“The potential in 2024 is huge: we are looking at a situation where personal ownership of in-game assets, powered by blockchain technology, is not only a novelty, but also as it It continues to evolve and will eventually become the new norm,” Jones told Cointelegraph. “This shift promises to unlock unprecedented opportunities and user engagement, making it a pivotal moment for developers and gamers. ”

However, despite this, the pair still believe that the industry is not quite ready to mature in the coming year.

"The industry is at a crossroads," Gregg told Cointelegraph. "Looking ahead, 2024 appears to be a critical year [...] with studios cautiously venturing into cryptocurrency-related initiatives and Test the waters before fully committing. In 2025-2026, we are likely to see mass adoption in gaming. ”

Whether 2024 is GameFi’s breakout year or not, advocates like Long hope the next wave of games can start to turn the industry around.

"As the years go by, the traditional centralized model seems to be tired. I think players are ready for something really new," Long said.