The future of web3 gaming is not tap-to-earn—it’s Roblox

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It’s no secret that web3 gaming has struggled to take off. However, if the web3 gaming industry wants to make a mark in the global entertainment market, it must focus on what makes it unique. Current trends like tap-to-win and other arcade-like models are far from that.

With blockchain technology, web3 game developers can create games designed for players who own full rights to their virtual goods. This is a gateway to new in-game economies and appeals to a new generation of players using platforms like Roblox.

These players are used to creating assets and making legitimate profits from them, where players can monetize their creativity in a dynamic and legitimate in-game economy. It’s not uncommon for this group to view these games as lucrative full-time jobs. This is where web3 gaming can find its perfect fit.

History repeats itself

The competition from the mature market of traditional video games (total annual value of $200 billion) seems like a daunting challenge for web3 games. But that doesn’t mean they are completely defenseless.

This was also true for traditional video games, which were a niche alongside the global film industry 30 years ago. Today, they have far surpassed that market, with the games industry expected to reach an estimated $227.6 billion by 2023, compared to just $65.21 billion for global subscriptions for video streaming revenue. The annual profits of games like Fortnite are equivalent to half of the global movie box office.

The current situation arose due to the emergence of a new generation of users who were better adapted to technological developments. Later, people saw the potential in the gaming niche and businesses turned to this segment of the entertainment market. Could this also be true for web3 games in three or five years?

The economy of leisure (and the economy of leisure)

The number of video game enthusiasts continues to grow every year and they are being met by new platforms with new business models. This is especially true for younger generations who are more likely to view gaming as their primary leisure activity and entertainment.

Children and teens have plenty of free time to spend. They can easily spend 10 to 12 hours a day “grinding” on a video game or amassing enough equipment. But for adults, that free time is diminished by responsibilities, including financial ones. Many games lose long-term players at this point in their product lifecycle because they are not designed to balance engaging gameplay with monetary incentives; this is exactly the challenge that web3 is uniquely able to address.

Is it possible to make a living playing games and choose it as a career path? A few years ago, the idea seemed absurd. Frankly, a select few could consider gaming a full-time job through esports competitions or streamer revenue. But for most, those doors would remain closed.

Roblox model

However, if we take a closer look at a few famous massively multiplayer web2 games, we find complete financial systems that can shed light on a different perspective. For over two decades, MMO RPGs like World of Warcraft or EVE Online have made players willing to pay real money for everything from developing their characters to acquiring in-game currency used to purchase desirable items. Many skilled players consider these activities as their primary source of income.

But no platform is a better example of in-game time capitalization than Roblox, and we could even see it as a bridge between what happened in web2 and what is possible with web3 models.

More of a social platform than a game, Roblox has provided its users with an experience based on community-created content. Roblox allows players to create their own assets and monetize them by earning the in-game currency “Robux”. Once they reach a certain level, they can choose to convert these coins into real money. This is an economy that is mostly supported by the creators, allowing both parties (the company and the players) to earn a share.

Here you have it, Roblox’s MAU has reached 300 million players. The platform has become the preferred leisure activity for a whole generation of new gamers in Generation Z. It turns out that providing players with freedom for their creativity and tangible (financial) rewards generates a tremendous amount of user engagement. Its model has created the right balance between financial incentives and a good gaming experience.

However, Roblox is not a blockchain-based project. Players do not own their creations and are forced to pay significant fees to make a profit. As the developers state on their website, only 29% of the value of an asset sold is returned directly to the creator. The rest is distributed to cover platform expenses or goes into the pockets of game developers.

Web3 can balance incentives with gaming

It’s easy to see how adopting a model like Roblox, incorporating the benefits of a decentralized and permissionless on-chain economy, could be a logical next step in gaming evolution. This could start by allowing players to manage their in-game assets and go as far as designing new in-game economies.

From a web3 perspective, this approach could also be a solution to the lack of quality in today’s web3 games. A platform that connects users with the right incentives allows game developers to focus and compete to design only the best gameplay.

Currently, most web3 games are in the process of finding their way or, in the worst case scenario, are simply looking to make quick money. It’s no secret that this is what has driven the success of certain categories like play to win and tap to win now. This has been unappealing to an entire generation of gamers who have never mixed gaming with financial incentives.

But younger users who grew up with games like Roblox, Fortnite or Albion Online have different expectations. They also look for quality entertainment and opportunities to socialize with other players, but the financial component is already part of the game for them.

This is where the new path for web3 gaming needs to be paved. GenZ players are already used to economic mechanics and the demand for capitalization opportunities will increase as time goes by. They are in the middle of the road. All we need to do is design platforms that improve the overall quality of the experience and web3 gaming could be the birthplace of the next Roblox.

Marcin Kobylecki

Marcin Kobylecki is the CEO of DRKVRS and former CCO of Platige Image. He is a highly experienced former executive producer who has been involved in Oscar-nominated projects such as “The Cathedral” and the BAFTA award-winning “Fallen Art”. His projects have won over 100 awards and distinctions. He has also worked as a (cinematic) producer on trailers for video games, including CD Projekt RED’s famous “The Witcher” saga and “Cyberpunk 2077”.