Web3 games have seen significant growth in on-chain activity, with blockchain games accounting for 34% of decentralized application (Dapp) activity in the previous year. Despite this, these games still struggle to attract traditional and Web3 gamers as highlighted in the 2023 State of the Industry Report from the Blockchain Game Alliance (BGA). The report notes that onboarding and accessibility remain significant challenges for Web3 games, with 55.1% of survey respondents citing onboarding as a main challenge in 2023.
Dean Takahashi, Lead Writer for GamesBeat at VentureBeat, emphasizes that Web3 games face more friction compared to Web2 games, largely due to the restrictions imposed by app stores and the complexities of setting up crypto wallets. To enhance adoption, Web3 games need to become more discoverable to their target audience, as user acquisition and retention are crucial metrics for growth. Unlike Web2 games that collect personal data for advertising purposes, Web3 games operate on decentralized platforms, making data collection more challenging.
Anton Umnov, CEO and Co-Founder of Helika, believes that data analytics can play a significant role in driving user engagement and increasing lifetime value (LTV) in Web3 games. Helika recently launched Helika Accelerate, a platform that provides gaming studios with specialized engagement data and AI-based solutions. Umnov emphasizes that while many Web3 game studios excel at attracting initial interest, sustaining long-term growth is often hindered by the lack of data optimization.
The Blockchain Game Alliance report highlights the concept of “on-chain targeting,” where gaming studios can leverage on-chain player data to create more engaging experiences and target specific user preferences. This approach enables companies to gather concrete data on player behavior and preferences, helping them attract new users. Idan Zuckerman, Co-CEO and Co-founder of Upland, mentions that in-game data collection is essential for user acquisition, and Upland uses this data to segment users based on their interaction with the platform to optimize player experience.
Gabi Musayev, Director of Marketing at Galxe, suggests that incorporating zero-knowledge technology at the protocol layer can help ensure user data privacy while still making it accessible for user acquisition purposes. Additionally, the role of artificial intelligence (AI) in improving user acquisition in Web3 games is highlighted. AI technologies such as Procedural Content Generation (PCG) can enable dynamic game content and enhance personalization, ultimately leading to more engaging gaming experiences that cater to individual player preferences.
Overall, while Web3 games face unique challenges such as onboarding difficulties and visibility issues, advancements in data analytics, privacy-preserving technologies like zero-knowledge proofs, and the use of AI can significantly improve user acquisition and retention. The industry continues to evolve, with a focus on enhancing discoverability, targeting specific player preferences, and leveraging on-chain data to create engaging and personalized experiences for gamers in the Web3 space.
