The Asia-Pacific (APAC) region hosts the majority of Web3 game developers (40 per cent), followed by North America (30 per cent). This year, half of the new games entering the space are based in Asia, according to a report by Game7, a Web3 Gaming DAO.
Investment in the Web3 gaming sector, which surged in 2021, has stabilised in 2023, reminiscent of pre-bull market levels. Since 2018, $19 billion has been funneled into Web3 gaming-related projects.
The Web3 gaming market continues to grow, albeit slower after the 2022 market correction. Blockchain gaming-related rounds have reached $1.5 billion in 2023 so far, with more than $800 million being exclusive to Web3 gaming, while the rest was shared across multiple verticals, the report said.
George Isichos, Core Contributor at Game7, said, “In the nascent realm of Web3 gaming, better research is how we solve complex problems. This report is our first attempt to index and better understand the broader Web3 gaming ecosystem in a credibly neutral manner, putting core game development pains ahead of tokens and speculation.”
This year, 30 per cent of new Web3 gaming teams came from the US, while South Korea contributed 27% of Web3 gaming teams, almost doubling its contribution from last year. The US remains the largest market for Web3 game developers (30 per cent ). Other key markets include South Korea (12 per cent), the UK (6 per cent), Singapore (6 per cent), Vietnam (4 per cent), and Australia (4 per cent).
Despite unfavourable market conditions, blockchains targeting the gaming sector are on the rise. In 2023, more than 81 new blockchain networks that target gaming have been announced, growing by 40 per cent YoY.
The majority of Web3 games (81 per cent) use general-use L1 networks, with EVM sidechains marking a significant portion. L1 networks were preferred for most games launched this year (75 per cent). On the contrary, 51 per cent of new networks were either a L2 (42 per cent) or L3 (9 per cent), mainly driven by the rise of Optimistic L2/L3 solutions.