Here’s How Web3 Is Continuing to Make an Indelible Mark on the Gaming Industry

Since its inception over half a century ago, the gaming industry has remained extremely dynamic, adaptive, and resilient. This is best highlighted by its continued growth during periods of macroeconomic uncertainty, such as the post-Covid era. That said, the last couple of years have been particularly transformative for this space, with the sector now moving toward a more decentralized mode of operation. 

An example of this has been the rise of decentralized gaming, with more and more publishers now harnessing the power of player-driven economic models — frameworks where the contributions of players, such as their time and monetary investments, are incentivized — to increase long-term consumer engagement.

However, this transformation has not just happened overnight but has been precipitated by a number of factors, like rising microtransaction costs and growing ad integrations. To elaborate, many in-game items within popular games are now behind paywalls and have to be acquired by paying extra dollars. Similarly, many free-to-play mobile games are filled with ads that cannot be skipped, making them unplayable oftentimes.

Enter Web3  

As the ethos of decentralization has seeped into the gaming industry, it has unlocked new ways in which players can interact with their favorite video games. For starters, the blockchain affords users the ability to craft and create their very own in-game items, which can not only accrue value over time but also be traded and sold on the open market.

Upland is a perfect example of this. By providing users with an expansive digital metaverse, they can now own luxury properties, trade/negotiate real estate deals, and participate in a plethora of location-based experiences, all within a virtual setting. 

In fact, thanks to Upland’s unique business proposition — which aligns the needs of its project’s developers and players — the ecosystem has been able to amass more than 3+ million active participants while becoming available across a host of different platforms, including Android, iOS, Windows, etc.

The tokenization of in-game assets helps lend even more appeal to the Upland metaverse since items such as condos, tracts of land, cars, etc., can be converted into non-fungible tokens (NFTs). These items can then be traded among players, thereby amplifying engagement levels in a big way. In fact, to date, players have been able to earn over $1.8M US Dollars by trading properties in Upland via its NFT-to-USD program.  

However, the idea of a player-driven economy, as exemplified by Upland, is not simply confined to the idea of incentives but a recognition of the fact that by allowing players to become stakeholders in a game’s economic and governance structures (as well as developmental roadmaps), their participatory/immersion experience can be taken to a completely new level.

To this point, Upland allows players to have a say in its key decision-making processes, such as how its native token (UPX) is disseminated or which new real-world cities are integrated into its map. For example, last year, Upland’s community voted to change the flow of UPX into the ecosystem’s ‘community pool,’ thus altering the supply of rewards for various in-game activities.

Adaptation is the key

As the old adage goes, ‘change is a necessary evil.’ The statement is especially true when it comes to the video game industry since it has traditionally offered a lot of resistance to new innovations, including blockchain technology. According to a recent Washington Post article, a number of game developers think that the ongoing transition towards Web3 tech is a passing fad. 

However, this criticism seems to be rooted in the fact that most developers today make use of business models that favor them heavily.  But with the introduction of disruptive projects like Upland, the apple cart is now being shaken heavily. Therefore, as the potential of player-driven economies continues to drive innovation within this space, it will pave the way for novel game experiences that were previously impossible with traditional formats. 

Looking ahead, it will be interesting to see how the blockchain continues to shape the industry by not only incentivizing players but also cementing their status as legitimate contributors to a game’s economy and community.