Nintendo, Atlus, and Capcom are just a few of the many giants in the global gaming industry. While they each produce different titles and IPs, one thing remains consistent between them all: they were founded in Asia, are successful in Asia, and are successful worldwide.
Zooming into Web3, Asia stands as a formidable region for the sector, representing a staggering 35 per cent of all blockchain activity.
Across the region, gaming companies of all sizes exhibit a clear, forward-thinking attitude, actively embracing and launching new genres of gaming within the Web3 space. Unlike viewing Web3 gaming as a mere hedge, Asian game studios are boldly spearheading this new frontier, reminiscent of their pioneering spirit at the forefront of the free-to-play and mobile gaming categories.
This proactive approach, despite encountering initial resistance from players and the industry, reflects Asia’s unwavering commitment to pushing boundaries and shaping the future of gaming.
A thriving ecosystem
Behind this remarkable statistic lies a thriving ecosystem fueled by substantial investments, with a staggering US$14.6 billion injected into the sector. Notably, over half of this investment comes from Asian venture capital firms, signalling a robust confidence in the potential of blockchain gaming.
Leading the charge is the visionary firm Animoca Brands, among others, championing innovation and driving growth in the sector. In addition, traditional gaming companies have already experimented with Web3 or digital assets, with some building their capabilities through subsidiaries to hone their expertise.
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For some, the technology isn’t fully refined enough to be integrated into the triple AAA studio titles we all know and love, and it’s clear that while the region is quite literally ahead of the game, some development is still needed. Thus, the reassurance for investors comes in the form of varying factors, with a major emphasis on the thriving ecosystem of connections and innovation that is brewing in the region.
Government support steadily building
The surge of investor confidence in Asian blockchain gaming ventures is further buoyed by the proactive stance of governments in the region. Countries like Malaysia, Japan, and Singapore have demonstrated a willingness to embrace blockchain technology, implementing policies aimed at fostering its expansion.
In Japan, Prime Minister Fumio Kishida has even proclaimed web3 as the new form of capitalism, with NFTs being one of the five key areas of national business interest. This endorsement from the highest levels of government underscores the country’s commitment to fostering innovation in the blockchain gaming sector.
Additionally, Malaysia has spearheaded new initiatives, with organisations like the Malaysia Digital Economy Corporation (MDEC) collaborating with web3 gaming startups. This collaborative approach between government agencies and the private sector is instrumental in creating a conducive environment for the growth and development of the blockchain gaming industry in Malaysia.
Current state of play
Artificial intelligence (AI) and gaming-related Web3 protocols have emerged as the frontrunners, capturing the lion’s share of investments. This trend signifies a significant shift in venture capital sentiment, marking the first increase in investments in over a year.
The revival of enthusiasm among venture capitalists for Web3, particularly in AI and gaming, speaks volumes about the sector’s potential and the promising future it holds. In the first quarter of 2024, there has been a staggering 55 per cent increase in Web3 investment, with a 36 per cent increase in the number of venture deals.
As traditional gaming industries and tech sectors face layoffs and uncertainties, the rise of Web3 gaming emerges as a beacon of hope for talent worldwide. The allure of this burgeoning sector has indeed attracted top-tier professionals from diverse backgrounds, eager to contribute their expertise to its evolution and success.
One case study illustrating this trend is the rapid growth of talent acquisition in blockchain gaming companies such as Axie Infinity and Decentraland. These companies have successfully attracted top talent from traditional gaming giants like Electronic Arts and Ubisoft, as well as tech giants like Google and Facebook. This influx of talent not only brings diverse skill sets but also fosters a culture of innovation and collaboration within the Web3 gaming ecosystem.
Looking at 2024, the state of play could not be clearer given the recent layoffs in January and February, with game development talent not only exploring pivoting to Web3 studios but are rather pivoting to Asian Web3 game studios. The reason? The region, ecosystem and development of these studios far surpass those based in the West.
Also Read: Web3 gaming: The next big thing in online entertainment
Moreover, the rise of remote work and decentralised teams has further facilitated the recruitment of talent from across the globe. This enables Web3 gaming companies to tap into a global pool of talent, regardless of geographical boundaries. As a result, the Web3 gaming sector continues to attract skilled professionals, driving innovation and pushing the boundaries of what’s possible in blockchain gaming.
East vs West: What really matters?
Navigating the diverse consumer landscape in Asian countries presents a unique set of challenges and opportunities for blockchain gaming entities. Consumer tastes and preferences in regions like Japan, South Korea, and China diverge significantly from those in the West, necessitating a nuanced approach to game development and distribution. Understanding and catering to local tastes and preferences are critical for success in these markets.
One striking example of the importance of cultural adaptation is the success of Genshin Impact, developed by Chinese game developer miHoYo. Despite being a free-to-play game, Genshin Impact generated over US$1 billion in revenue within six months of its release, largely due to its appeal to both domestic and international audiences. The game’s art style, characters, and storytelling resonate with players worldwide, demonstrating the power of cultural relevance in game development.
In conclusion
As Asia’s dominance in the Web3 gaming sector continues to solidify, it is evident that the region plays a pivotal role in shaping the future of blockchain gaming on a global scale. With Web3 gaming representing a staggering 35 per cent of all blockchain activity, Asia stands as a formidable force in the sector, driving innovation and pushing boundaries.
With investor confidence reaching the heights of 2021 and the region propelling the industry’s trajectory, one thing is clear: Asia’s dominance in the Web3 gaming sector will continue to rise and potentially monopolise the market for years to come.
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