Live X Talk Space
In the recent Xtalks: Web3 Gaming’s “Face Plant” — What Went Wrong, What’s Working, and What Will Win by 2034, host Kody (Layer One X) led a dynamic panel of industry experts to unpack the state of Web3 gaming, its struggles, and its path forward. Featuring Kevin (Layer One X Founder), Warp Game Chain (publisher), Sr Chois (community leader), Mr Konsole (commentator), Luca (Sachi lead developer), Ivan (Project Eldrem founder), Valentina (Valannia MMO builder), and Henry (Pagram AI), the discussion tackled the sector’s “epic face plant” and its potential to reach a projected $183B market by 2034.
The Problem: A Market in Reset
Kody framed the discussion with stark realities: ~300 Web3 games shuttered, funding down ~93%, and daily active users dropping 17% QoQ to ~4.5M—the lowest since early 2023. Yet, there are bright spots: Axie Infinity retains ~1M followers, Epic Games Store has onboarded 81 Web3 titles, and Ubisoft has launched on-chain. The panel debated whether this is a necessary cleansing or a sign of deeper issues, identifying key pain points: token-first designs, poor gameplay, and high onboarding friction.
Core Consensus: Game-First, Not Token-First
The panel unanimously rejected speculative, token-driven models, emphasizing that fun, high-quality gameplay must come first:
- Warp Game Chain stressed disciplined publishing, prioritizing gameplay and retention over market-driven hype.
- Henry argued the sector is shedding noise, not dying, and urged focus on fun before complex tokenomics.
- Luca (Sachi) emphasized player priorities—fun, aesthetics, and community—over blockchain jargon, advocating experience-first design with deflationary tokenomics.
- Kevin highlighted balancing gameplay addiction, tokenomics, and community adoption, warning that token-first models collapse without sustainable gameplay.
Economics and Adoption: Success Breeds Growth
- Mr Konsole likened studios to startups, noting that most fail but visible wins can attract developers and capital, diversifying genres.
- Kevin pointed out that while daily users are down, they still exceed 2021’s peak, signaling persistent demand but zero tolerance for low-quality projects.
- Sr Chois advocated for sustainable wealth distribution, citing Axie’s 2021 success, but stressed empowering communities without extractive mechanics.
Design and Onboarding: Frictionless Is Key
Onboarding barriers were a major focus:
- Luca showcased Sashi’s browser-based, no-install approach using Microsoft Azure and Unreal Engine’s Pixel Streaming for instant, secure access.
- Kevin pushed for OTP/email sign-ups and free credits to ease players into games before introducing wallets or tokens.
- Ivan (Eldrem) championed free-to-play models with limited token/NFT supplies to maintain value and fairness, drawing inspiration from traditional hits like Baldur’s Gate 3.
Monetization and Tokenomics: Revenue First
- Warp Game Chain urged building revenue streams before tokenomics, ensuring studios can survive to ship sequels.
- Ivan emphasized cross-game asset utility to boost retention across multi-game IPs like Eldrem.
- Kevin highlighted Layer One X’s Quantum DeX, which supports trusted, anti-rug mechanics and integrates with L1X Play to build games around thriving communities.
Platform Choices: Mobile vs. PC/Browser
The panel debated platform strategies:
- Warp Game Chain and Kevin leaned toward mobile and MMORPGs for mass reach, citing market size and social engagement.
- Luca and Valentina defended PC/browser for instant access, security, and social richness, especially for genres like social casino or community-driven MMOs.
Project Spotlights
- Layer One X/Quantum DeX (Kevin): A high-performance platform supporting multi-chain games with anti-rug protections and up to $2M liquidity per project.
- Sachi (Luca): A “digital Vegas” blending iGaming and crypto with browser-based, experience-first gameplay.
- Project Eldrem (Ivan): A multi-game RPG ecosystem with free-to-play access and cross-game asset utility.
- Pagram AI (Henry): AI tools and livestream infrastructure for studios, prioritizing fun-first design.
- Valannia (Valentina): A community-focused MMO leveraging PC/browser for social engagement.
Key Takeaways
Web3 gaming’s “face plant” is a reset, not a collapse. To hit 2034’s $183B target, studios must:
- Prioritize fun, revenue-driven games over speculative tokenomics.
- Remove onboarding friction with instant, wallet-free access.
- Design for scarcity and cross-game utility to sustain value.
- Leverage mobile for reach and PC/browser for community-driven experiences.
- Build sustainable economies that empower players as ambassadors.
Kody invited projects to pitch on Layer One X’s weekly show (Wednesdays, 8 am EST), fostering direct community engagement. The panel underscored Layer One X’s mission to unite crypto ecosystems, delivering seamless experiences across chains and games.
Web3 gaming can rebound by focusing on fun, frictionless, and financially sound designs. With disciplined execution and community-driven wins, the sector can rebuild on a stronger foundation, attracting the developers, capital, and players needed for long-term success.
