On the surface, video gaming tech has seen rapid expansion the last 12 months, ushering in a groundbreaking period for the industry. While the industry was experiencing their own economic headwinds and pandemic related job loss, the sector proven incredible resourcefulness and ingenuity. With daily active wallets skyrocketing, the numbers clearly speak to blockchain technology’s booming appeal in the gaming industry. Simultaneously, a record number of new games have been released diversifying this trend. According to industry experts, building loyalty among players is key. This strategy is crucial to maintaining growth and driving long-term success within the competitive web3 gaming landscape.
Web3 Gaming's Rapid Ascent
Web3 gaming, or blockchain gaming as it’s often called, has made incredible strides over the past year. It is the growth and potential that has been so remarkable – exciting. Yet according to the recently released 2024 DappRadar Games Report, this expansion continues, with the space recently reaching 7.4 million daily active wallets. This unprecedented swell in activity is a testament to the vibrant allure and rapid adoption of web3 gaming among players across the globe.
The same DappRadar report revealed more than 1,600 new games entered the web3 gaming ecosystem. Total gaming activity was almost five times what it was at the end of 2023, pointing to a fast-changing, innovative landscape. We view this influx of new titles as a sign that developers are beginning to understand how blockchain technology can enhance gaming experiences.
Yet, even with this enormous growth, the web3 gaming industry had a rough year. In 2024, studios were starting to feel the pinch of these increasing costs and ever-shrinking returns on user acquisition. Because of that, they lost more than 12,000 gaming jobs. Each of these job losses is a reminder that we need to develop sustainable strategies that focus on keeping players around and engaged.
The Loyalty Imperative
Developing longstanding player loyalty is proving existentially important for web3 gaming companies hoping to make it in this space for the long haul. Conventional loyalty platforms just don’t cut it anymore in the hyperlocal, community-centric universe of web3. To ensure their players stay interested and committed, businesses need to push the boundaries and wildly different strategies with which to woo players.
"It's not about going for Day 7, 14, and 28 retention curves. Companies must construct a new kind of loyalty system that will bring players back for a year." - John Wright, VP of Mobile Publishing at Kwalee.
In most gaming ecosystems today, loyalty programs are limited to a leaderboard, a daily bonus, or some other relatively simplistic points system. These tactics aren’t enough to build true loyalty and lifelong relationships. We need to start thinking about ways to create deeper, more fulfilling, and more rewarding experiences for players.
Projects like Forgotten Runiverse are helping to lead the way on these more innovative, alternative approaches. They combine play-to-earn mechanics and dynamic loyalty programs to fuel vibrant player economies. These cutting-edge tactics provide players with tangible rewards for keeping their interest. They further invite ongoing engagement within the game’s ecosystem, deepening the community and fostering brand loyalty.
Building Sustainable Loyalty Systems
20 true loyalty programs, as they exist today, have not evolved with the rapid expansion of the web3 gaming industry. Conventional tools weren’t designed for the new, community-first paradigm of gaming. This gap represents a huge opportunity for developers to build more impactful and entertaining loyalty experiences.
Measuring success—creating an emotional connection Companies need to get past shiny rewards and level-up design systems that make real emotional connections with players. This requires a deep understanding of player motivations, preferences and behaviors to craft truly personalized and meaningful experiences. In so doing, developers can create a deeper sense of engagement and commitment among their gaming communities.
To build these systems, developers should consider integrating elements such as player-driven content creation, governance mechanisms, and shared ownership models. These business strategies serve to help empower players and provide them more of a vested interest in the success of the game. In turn, they promote greater loyalty and lifetime value.
