In the constantly evolving Web3 landscape, this report sheds light on the factors driving gaming adoption, emphasizing the dominance of the Asia region in the global gaming market and illustrating the nascent state of blockchain gaming in Japan.

Key Takeaways

1. The latest trends on Web3 gaming based on DappRadar survey

Web3 gaming has been a hot topic in the blockchain industry, and it is becoming clear that tit’s here to stay. DappRadar recently conducted a market survey which provides valuable insights into the latest trends in Web3 gaming.

One of the biggest trends in Web3 gaming is the introduction of high-quality, AAA-type games. Titles such as Illuvium, Guild of Guardians, Sidus Heroes, Shrapnel and Big Time promise to offer gaming experiences that can rival those of traditional PC, console, and mobile games. This indicates that the Web3 gaming market is evolving and becoming more mature, which will attract more players and investors.

Another trend that has been gaining popularity is the implementation of decentralized autonomous organizations (DAOs) in gaming ecosystems. DAOs have been around for a while, but they have experienced a resurgence during the Web3 gaming revolution. DAOs are expected to play a crucial role in the evolution of Web3 games.

The recent survey conducted by DappRadar sheds light on how gamers discover and evaluate new Web3 games. According to the survey, Twitter, YouTube, and Discord are the top platforms where gamers discover new games. Interestingly, DappRadar is one of the most popular websites that gamers follow to discover new Web3 games.

When evaluating a new game, gamers consider several factors, including entry price, the number of active users, and game economies. However, the survey reveals that the importance of “visual quality and game experience” is slightly higher than other criteria, which is surprising given the focus on blockchain technology.

Despite the importance of game experience and visual quality, gamers are still expecting to receive airdrops before starting to play a new game. Airdrops seem to be an essential factor that motivates gamers to try new games.

In conclusion, the recent survey conducted by DappRadar sheds light on the latest trends in Web3 gaming and how gamers discover and evaluate new games. High-quality AAA-type games and DAOs are some of the most significant trends in Web3 gaming, and DappRadar can play a crucial role in positioning itself as a leading discovery platform for Web3 games. The survey results provide valuable insights for product development and marketing strategies for Web3 gaming companies.

2. Asia’s gaming market: the driving force behind the global gaming industry

The Asian market has long been the driving force behind the global gaming industry. With 1.7 billion players, it’s not only the largest in the world, but also brimming with growth potential. In 2019, the region generated $72 billion in revenue, representing 52% of the world’s annual gaming revenue. Moreover, with the region’s salient per capita GDP growth, gaming purchasing power is expected to increase, further driving up Asia’s market share in the global games market.

East Asian countries, specifically China, Japan, and South Korea, dominate the gaming industry in Asia. In fact, of the top 100 gaming companies in the world by market capitalization, 62 are from these three countries. In China, the game industry is dominated by large platform companies such as Tencent, while in Korea and Japan developers and publishers that produce their own games wield the scepter. These companies have been driving innovation and growth in the gaming industry, from arcade games in the 1980s to mobile games in the 2010s.

The interest in blockchain technology is so high that game companies are incorporating it into their game IP. Korean game company Nexon is building a blockchain-powered version of their hit MMORPG MapleStory, while the Japanese powerhouse Square Enix created a new project called Symbiogenesis. Blockchain technology offers a new way for game companies to create and distribute in-game assets, such as virtual items and currency, that players can buy and sell. It also offers a way to ensure the security and transparency of these transactions, making it an attractive option for game companies.

In Asia, the interest in blockchain technology is particularly high, with game companies working on blockchain projects. However, in China, where cryptocurrencies are banned, game companies are not able to incorporate blockchain technology into their games. Despite this, game companies in Japan and South Korea are leading the way in the adoption of blockchain technology in gaming.

Since the late 80s and early 90s, with the emergence of games such as Final Fantasy and Dragon Quest, it has been observed that RPG games have been the preferred genre in the Asian gaming market. Unlike the US market, where strategy and action games prevail, the RPG games have become a cultural aspect of Asia. RPG games are more suitable for incorporating blockchain technology, as they involve the creation and exchange of in-game assets, making them an ideal fit for blockchain technology and open worlds. With more game companies incorporating blockchain technology into their RPG games, the blockchain gaming market in Asia is poised for significant growth and innovation.

3. Breaking down the results of the first-ever survey on blockchain gaming in Japan

The blockchain gaming market in Japan has been a topic of interest among industry experts and gamers alike, but until recently, there were no surveys conducted on the awareness and impressions of blockchain games in Japan. To address this knowledge gap, Pacific Meta conducted a market research on 1,030 men and women in Japan, ranging in age from their 20s to 70s.

One of the key findings of the survey is that 40.2% of respondents were aware of blockchain games. While this may seem low, it is important to note that blockchain gaming is still a nascent industry and has yet to become mainstream.

However, the survey found that of those who were aware of blockchain games, 56.8% had a positive impression of them, while only 10.1% had a negative impression.

Interestingly, even among those who were not aware of blockchain games, the survey found that 48.6% had a positive impression of them, indicating that there is a potential market for blockchain games among the general population.

When it comes to what features Japanese gamers find appealing in blockchain games, the survey found that the ability to play for free was the most important factor, followed by the ability to play on a smartphone and the ability to earn rewards in the game.

Given that mobile gaming is more popular in Japan than PC or console gaming, it is important for blockchain game developers to prioritize mobile accessibility. Additionally, incorporating play-to-earn elements could be a successful strategy for attracting Japanese gamers, who are known for their willingness to invest in their gaming experiences.

The Japanese gaming market could see a shift towards blockchain games, according to survey results. Developers could capitalize on growing interest among Japanese gamers by prioritizing mobile accessibility and play-to-earn elements.

To further highlight the country’s potential in blockchain gaming, at the beginning of April 2023, Japan’s ruling Liberal Democratic Party’s Web3 project team published a white paper with recommendations for boosting the crypto industry. The paper suggests that Japan should demonstrate leadership at the upcoming Group of Seven summit, where crypto will be discussed. It also proposes changes to tax regulations, such as allowing tax exclusions for companies holding tokens issued by other firms and self-assessments for investors to carry over losses for three years.

Furthermore, the paper suggests that crypto should be taxed only when assets are exchanged for fiat currency. It also advises setting up a DAO law based on Japan’s godo kaisha and recommends changes to regulations under the Companies Act and the Financial Instruments and Exchange Act.

By prioritizing mobile accessibility and incorporating play-to-earn elements, blockchain game developers can leverage these recommendations and tap into the growing interest among Japanese gamers for innovative and engaging gameplay experiences that leverage blockchain technology.

4. The rise of Asian gaming companies shifting from Web2 to Web3 and embracing blockchain technology

In recent years, there has been a noticeable shift in the gaming industry as companies transition from Web2 to Web3, incorporating blockchain technology into their operations. This trend is particularly prevalent in Asia, where gaming companies are leveraging their existing IPs and market presence to explore the potential of blockchain and NFTs.

Sony, the tech giant behind the PlayStation brand, has made significant strides in the blockchain space with its latest NFT-related patent application. Although no video game console maker has publicly embraced NFTs, the application suggests that Sony aims to create a standardized digital infrastructure for gamers to own and transfer digital NFT assets across various platforms.

Bandai Namco solidified its NFT plans and is aiming to expand its blockchain endeavors by launching a vast network of games and interactive media starting with the Gundam franchise, a popular anime and video game series. Side-G is a Gundam-themed metaverse with colonies showcasing Gunpla models, esports and games, among others.

Wemade, a Korean game company with a market cap of $2B, has seen significant growth due to the success of its blockchain game “Mir 4 Global,” which is based on the popular game IP “The Legend of Mir.” Following the decline of the game’s governance token, WEMIX, WeMade shifted its strategy to launch its own Layer-1 blockchain, “WEMIX Chain,” to build an entire blockchain ecosystem.

South Korean gaming giant Netmarble has selected blockchain as a new growth engine, entering the market with a two-track approach through the Klaytn-based platform Marblex and the BSC-based entertainment-oriented platform FNCY. With 13M users and 22.5M game downloads in 2022, Marblex is set to take another leap forward in 2023 with the launch of a game utilizing its core IP, “Let’s Get Rich.”

Com2uS, a mid-sized Korean game company, is developing a PoS blockchain called XPLA utilizing the Cosmos SDK. The company, which grew significantly with the success of its mobile game “Summoner’s War,” aims to leverage blockchain technology to further expand its reach in the gaming industry.

Square Enix, a leading Japanese game company known for its core IPs such as “Final Fantasy” and “Dragon Quest,” has proposed blockchain games as a mid- to long-term growth strategy. The company is currently developing “Symbiogenesis,” an NFT game based on 10,000 NFTs and set to launch on the Polygon blockchain. The move signals Square Enix’s intent to explore the potential of blockchain gaming further.

Sega, one of the largest Japanese gaming companies, announced at the end of 2022 that it will launch its first blockchain game in collaboration with Double Jump Tokyo, another Japanese development company. The game, which is based on Sega’s Sangokushi Taisen franchise, will be built using Oasys to support its blockchain elements.

Oasys is an emerging Japanese-based blockchain gaming company that has recently attracted attention in the industry. Founded in 2021, Oasys has quickly garnered a dedicated following and secured over $5 million in funding from prominent investors, including blockchain venture capital firms and game industry veterans. The company is committed to developing innovative gaming experiences by incorporating blockchain technology and NFTs into their games.

One of Oasys’ flagship projects is “Defend the Kingdoms,” an upcoming play-to-earn strategy game that aims to offer an immersive and player-driven experience. The game is set to launch in Q3 2023 and has already attracted over 50,000 pre-registrations, reflecting the growing anticipation for this new addition to the Web3 gaming landscape.

Lastly, in July 2022 Yield Guild Games’ establishment of YGG Japan was a significant step towards fostering a thriving blockchain gaming community in Japan. By providing a platform for gamers to participate in guilds and offering scholarships for locally developed games, YGG Japan aims to scale the blockchain game market in the country.

One of the advantages of YGG Japan is its ability to leverage Japan’s unique ecosystem, which includes some of the world’s most popular intellectual properties. On 30 January 2023, YGG Japan has completed a $2.95 million private funding round with participation from 18 companies, including Square Enix, SEGA, and Gate.io Labs.

The shift from Web2 to Web3 has opened up new possibilities for the gaming industry, and Asian gaming companies are at the forefront of this change. By leveraging their existing IPs and market presence, these companies are exploring the potential of blockchain technology and NFTs, setting the stage for a new era of gaming. As the technology continues to evolve, it is likely that more gaming companies worldwide will follow suit, embracing the potential of Web3 and blockchain technology.

5. The craze for anime-based NFTs: how Japan’s gaming and anime culture converge

In recent years, Japan’s gaming culture has become increasingly intertwined with the world of anime, a style of Japanese animation that has gained a massive following around the world. This connection has led to the emergence of a vibrant community of gamers and anime fans who share a passion for both mediums. In particular, the rise of NFTs has provided a new platform for this community to connect and express their love for anime and gaming.

Over the past six months, anime-based NFT collections have been gaining significant traction, representing around 10.73% of the NFT trading volume of the top 1000 NFT collections.

We analyzed 30 anime-based NFT collections and found that the average NFT trading volume for one collection during this period is $1,331,354, with an average sale of $511.12. On average, an NFT from the collection is traded just 2.19 times, and there were 85,729 unique traders, who on average traded 3.90 times an NFT from an anime-based collection. This implies that NFT anime traders are not merely aiming to resell their collections for a profit; instead, they exhibit a genuine interest in the utility these assets offer.

Chiru Labs, the Web3 studio behind the Azuki ecosystem, perfectly captures this cultural trend. Azuki has a pop-culture flare with an old-style Japanese aesthetic and has a great variety of traits, with each PFP and character telling its own story. Despite facing constant questioning about certain team members, Azuki has pioneered new tech in web3, designing the ERC-721A smart contract that collections use today to minimize gas fees. Azuki is also the first blue-chip NFT to ever be on an F1 race car, and it will be on the team cars for all to see in the 2022 season finale in Abu Dhabi. Azuki’s floor price has remain steady above 10 ETH for the last six months, confirming it one as one of the blue-chip NFT collections.

Another project that captures this trend is 0N1, perhaps the first-ever anime NFT to be released. While 0N1 saw its floor price decrease in 2022, the collection saw a nice recovery last February and it is being traded above 0.7 ETH. The inventive NFT, launched in August 2021, features vibrant colors and chill characters that resonate with collectors. These NFT PFP avatars possess unique traits such as eccentric masks, headphones, hairstyles, and more, while the base characters exude the classic anime look.

Renga is a more recent collection, launching in late 2022. The 10,000 character-strong collection is the result of hard work by famous artist DirtyRobot, and the artwork really stands out from most of the anime NFTs on this list. This storytelling collection was hugely successful in its first few months, and holders are proud of their Rengas. It seems that Renga represents something deeper than just art as a utility.

In conclusion, the growing popularity of anime-based NFT collections in Japan reflects the increasing intersection between gaming and anime culture. 10ktf is yet another project that captures metaverse, gaming, and fashion in one single concept. While it is uncertain where this trend will lead, it is clear that anime-based NFTs have captured the imagination of collectors and enthusiasts worldwide, and the future looks bright for this vibrant and creative community.

6. Conclusion

In today’s constantly evolving landscape of gaming, the potential of blockchain gaming has been a topic of interest for quite some time. This report sheds light on the factors driving web3 gaming adoption and how the shift from web2 companies towards web3 is expected to impact the industry.

The Asia region dominates the global gaming market, accounting for 55% of the world’s total gamers and generating over half of the world’s annual gaming revenue, amounting to $72 billion. This is a clear indication of the significance of the Asia region in the gaming industry. The report highlights that Asia’s gaming market is the driving force behind the global gaming industry and plays a crucial role in the adoption of blockchain gaming.

The report also illustrates the nascent state of blockchain gaming in Japan. According to the Pacific Meta survey, only 40.2% of respondents were aware of blockchain games in Japan, indicating that blockchain gaming is still a nascent industry and has yet to become mainstream in Japan. However, this presents a significant opportunity for growth in the region, and with the rise of Asian gaming companies shifting towards web3 and embracing blockchain technology, the adoption of blockchain gaming might come sooner than we expected.

The DappRadar gaming survey provides valuable insights into the latest trends on web3 gaming. The survey highlights that Twitter is the top platform for gamers to discover new games, and airdrops remain a crucial factor in motivating them to try new games, even before experiencing the game’s visuals or quality. Moreover, the survey reveals that Polygon is the blockchain of choice for 30.8% of the web3 games surveyed, with Ethereum and Algorand coming in at a close second with 9.2% each.

As the gaming industry continues to evolve, it will be interesting to see how blockchain technology and NFTs will transform the gaming experience and drive the adoption of web3 gaming.

(By Sara Gherghelas)

Read more: https://dappradar.com/blog/asia-has-potential-to-dominate-web3-gaming-market