Web3 Games Market
Definition
 

Web3 gaming is a decentralized method where games are stored on the blockchain, rendering them impenetrable to hackers. Blockchain-based gaming is decentralized, meaning that all users on the network may access it equally and modifies the game through voting consensus. It also eliminates the possibility of a single point of failure. Web3 gaming guarantees a great degree of transparency in this way. By incorporating blockchain technology and the metaverse into the gaming business, web3 gaming has completely changed the gaming scene. By doing away with centralized game administrators and platform owners, it has democratized the gaming industry. Web3 gaming powers the gaming industry's financial side as well, with to innovations like blockchain, DAO, and the metaverse. It facilitates the profitable activities that gamers partake in, like play-to-earn using NFTs and in-game digital asset trading. Web3 gaming is therefore a step in the right direction toward a revolutionized digital game market.

Key Players
Dacoco GMBH (Germany)
Dapper Lab (Canada)
Decentraland (United States)
DeFi Kingdoms (United States)
G.JIT JAPAN (Japan)
Gala Games (United States)
Immutable (Australia)
MOBOX (Iran)
Sky Mavis (Singapore)
Sorare (United States)
Splinterlands (United States)

Segmentation

By Type
Axie Infinity
STEPN
Illuvium

By In-Game Assets
Non-Fungible Tokens (NFTs)
Virtual Real Estate
Virtual Items and Skins
 

Market Dynamics

Driver 
Players in Web3 games actually own the assets, objects, and collectibles. This is accomplished with NFTs, which are sometimes called digital collectibles in the game industry. Ownership is tracked on the blockchain. Moreover, through decentralized markets, players can profitably trade or sell their goods.  The decentralized governance of many web3 games is another key component. Although not all companies have chosen this path, it gives players the power to decide how and when the game should change.  
Because Web3 gaming links players and in-game assets between games, it also makes wide interoperability within different gaming ecosystems possible. In essence, players can move their acquired assets from one game to another or even to a different blockchain. Because of this, gaming ecosystems with a variety of games in various genres and styles have been able to develop. Because Web3 gaming links players and in-game assets between games, it also makes wide interoperability within different gaming ecosystems possible. In essence, it has the ability to move player-earned assets from one game to another or even to a different blockchain. This has made it possible to build gaming ecosystems that contain a variety of games in various genres and styles. Players can own the items they use in-game in Web3 games. It follows that players are able to lend, trade, and sell their possessions to other players. Web3 games are compatible, which allows in-game items to be utilized with other games. Because of this, individuals are able to create their own distinctive gaming experiences within a whole gaming environment. Community is the cornerstone upon which web3 games are built.
 

Restraints
A Few Notable Less detrimental factors that could limit the capabilities of more advanced devices won't be able to handle Web 3.0 websites; Web 1.0 websites will seem far more antiquated, and they are sometimes quite difficult for novices to understand.
A lot of rules pertaining to property ownership and security needed to be altered. These laws also needed to be made more environmentally friendly because modern technology has a significantly larger carbon footprint than earlier models.Technology isn't quite ready for that just now. Getting a user's public and private information is simple. Individuals will use the internet more frequently. Policies for rivacy are required.

Opportunity
The creation of communities, ecosystems, and sustainable economies will be more important aspects of web3 gaming in the future than simply making games. Web3 gaming is set to transform and democratize gaming in a similar way to how YouTube revolutionized and made content creation accessible to everybody.
Innovative gaming experiences and simple onboarding are essential for drawing in a diverse player base. We anticipate a boom in creativity and innovation in the web3 space as more people become aware of the notion of ownership. Web3 gaming will experience a major development period during the next five to ten years, especially in Asia. China has shown a particularly strong interest in web3 gaming, as evidenced by the large number of Chinese game creators who relocate to Singapore or Hong Kong to work on web3 games. Talent from all over the world is drawn to these places because they provide a welcoming environment for web3 development. Finally, web3 gaming's UX and infrastructure are in place. The stage is now prepared for web3 gaming to become widely available, thanks to solutions like Immutable Passport and third-party software stores like Google Play and Epic Store that facilitate on-chain development. There will be obstacles in the way of widespread adoption, though. Web3 gaming is seeing a boom in investment, but 90 percent of funded games are expected to fail by the time they launch next year, with 40 to 50 percent of them predicted to fail.

Recent Industry Insight
On June 2023, Fenix Games and Immutable Team Up To Launch Mass Market Web3 Games
On October 2023, Mythical Games Brings Street Racing and Car Ownership to Web3 Gaming with Official Launch of Nitro Nation World Tour
On July 2022, Joyride Games Announces Launch of its Web3 Game Publishing Platform on Flow
On Nov. 2023, Kratos Studios allocates Rs 50 Crore, Launches ‘Kratos Games Network’
On February 2023, Fujitsu launches new platform to support Web3 developers globally
On March 2023, Introducing Immutable zkEVM Powered by Polygon: the Home of Gaming in Web3 in Partnership with Immutable
On November 2023, READYgg Teams Up with Aptos Labs to Bridge Web2 to Web3 for 15M Players

Recent Acquisition and Merger
On September 2023, Spielworks acquires the Atomic Hub NFT marketplace to bolster the WAX ecosystem and advance Web3 gaming
On June 2022, Nazara aims to acquire Web3 companies, gaming studios: Nitish Mittersain
On Nov. 2023, Crypto Media Firm Coindesk Acquired by Bullish in All-Cash Deal
On November 2022, Aquarius AI Inc. Announces the Acquisition of Jellyworks Inc.
On November 2023, Web3 Pioneer Treehouse Dives Into NFT Analytics with Origins Acquisition

Key Target Audience
End User
Potential Investors
New Entrants
Innovation and R&D
Suppliers and Manufacturers
Others