GameFi was a revolutionary idea, when it first dropped. But here we are, 2 years later, and the concept has lost its novelty factor.
Initially, it was thought to disrupt the gaming industry. And in some regards, it has. Big AAA titles are trying to integrate the GameFi mechanics to lure in new gamers.
But when it comes to GameFi as an investment area, it can be a bit tricky to pinpoint where all of this is going.
Is GameFi any good for serious investors?
GameFi is like any other big industry that is trying to make a mark for itself. That means it will attract some boasters, some hype-creators, who will, like that of crypto, balloon up the market value. The market will eventually settle for far less than the hyped-up price.
And yet, this happens to every other market. Some people lose their investments when they take risks. Others make huge gains. It’s all part of the game (pun intended).
GameFi is trying to make a mark for itself in the market, not just for gamers. Because no matter how big the gaming industry gets, it helps to have diverse markets at hand. GameFi combines finance and gaming for an amalgamation that has the potential to attract both serious gamers and finance enthusiasts.
GameFi is similar to the cannabis industry, where initially, the market boomed and now has settled for a respectable value. This is to say that the cannabis industry has attracted both stoners and those looking for medicinal effects.
How can GameFi break the growth plateau?
GameFi could be the next big thing if companies investing in it focus more on the gaming experience. And a little less on the financial gains.
This is what real gamers want. Everyone wants to earn from what they enjoy doing. But gamers want something more than just potential earnings from their games. They want an immersive experience, one that uses Web3 technology to its fullest and, for their efforts in-game efforts, rewards them.
This is the basic hook that would attract even die-hard gamers to Web3 gaming. And yet, most of the companies developing new GameFi projects haven’t made any real efforts in this regard.
There are a few exceptions where developers first focused on the quality of games rather than the money hook. And those are making actual bucks. Axie Infinity is a good example.
It’s a riff on the Pokémon concept, but it is good enough to engage players. The integrated mechanics are a great addition and don’t take away from the gaming experience.
Why don’t we see AAA-level GameFi titles?
One thing to keep in mind is the logistics of creating a triple-A title like God of War or Cyberpunk 2077. The sheer amount of money, talent, dedication, and time required to muster up a title like that is too much for investors.
They want immediate results, and that means having to work against time. And build something serviceable. Not creating a magnum opus for the gaming industry.
With all that said, is there a possible future where we’ll see such titles rise in the Web3 space?
Of course! We have two companies developing GameFi titles that could rival the best AAA titles. They’re taking their sweet time in development. And that means working against trends and hoping that the GameFi industry survives.
Will GameFi survive?
As a disclaimer, this is not investment advice. You have to scour the internet and find out if the industry is good enough for investments.
With that out of the way, let’s talk about GameFi survival.
It is an up-and-coming industry with its roots deep in the crypto world. And we’ve all seen that the crypto industry survived despite all the pushback and the doomsayings.
While we’re at it, let’s not forget the gaming industry itself. It is 3 billion strong, much bigger than any entertainment industry. So the GameFi industry focusing more on the gaming side could translate to more players. The more players there are, the more investors take an interest in it, and more revenue is on the table to grow the industry as a whole.
What do numbers say?
According to many surveys, the GameFi industry has yet to grow. There is a lot of potential for growth because the current user base is just a fraction of the billions of worldwide gamers. If everything stays on track, the industry will buxic flourish and become an investment haven for newcomers and veteran investors.