As the popularity of blockchain gaming continues to grow, several challenges must be overcome for the industry to remain viable in 2025. Tobin Kuo, CEO of blockchain gaming company Seraph, shared his insights with Cointelegraph on the hurdles that GameFi needs to tackle.
Sustaining Player Engagement
According to Kuo, over 60% of players disengage from Web3 games after only 30 days. The main reasons behind this problem are a lack of long-term incentives and poor gameplay mechanics. Kuo emphasized that game developers must prioritize player-centric design, focusing on immersive storytelling, skill-based rewards, and game mechanics that go beyond ‘earn-first’ models.
"As the attention economy accelerates, projects must prioritize player-centric design, focusing on immersive storytelling, skill-based rewards, and game mechanics that go beyond ‘earn-first’ models instead of relying on trend-based attention." – Tobin Kuo, CEO of Seraph
Adopting New Technologies
To overcome these challenges, building better blockchain games in 2025 requires integrating new technologies, such as generative AI. According to Kuo, projects that fail to integrate nascent tech typically record 30% to 40% reductions in player retention compared with those embracing new technologies.
Poll Results: Biggest Negative Impacts on GameFi
A poll of Web3 gaming professionals conducted by the Blockchain Game Alliance reveals the biggest negative impacts on the GameFi sector in 2024:
- Poor user experience (UX) and complex user interfaces (UI): 53%
- Complexities in setting up a crypto wallet: 11%
- Poor gameplay experiences: 33%
Building Sustainable In-Game Economies
Unstable in-game economies are a leading cause of project insolvency. Kuo emphasized the importance of building sustainable token models for Web3 games that control inflation and feature data-driven player rewards. Strategies such as dynamic loot distribution, staking-based rewards, and player-controlled economies via decentralized autonomous organizations (DAOs) are likely to emerge as best practices for sustainable GameFi development.
Case Study: Clicker Games
Clicker games like Hamster Kombat have captured headlines in recent months. The game surpassed 300 million users in less than five months but experienced an 86% reduction in active users following a token airdrop, which was considered the largest in crypto history. As of November, the game only had 41 million players compared with the 300 million peak levels recorded during the summer.
State of the Blockchain Gaming Industry in 2024
The Blockchain Game Alliance (BGA) recently released its ‘2024 State of the Industry Report,’ which polled 623 professionals from the Web3 gaming industry. According to the report, approximately 53% of respondents indicated that poor user experience (UX) and complex user interfaces (UI) present the biggest challenges to onboarding new players to Web3 games.
Key Findings: BGA’s 2024 Report
- Poor UX and UI: 53%
- Complexities in setting up a crypto wallet: 11%
- Poor gameplay experiences: 33%
The Importance of Abstracting Away Blockchain Features
Long Do, CEO of Anomaly, emphasized the importance of abstracting away blockchain features so players do not know they are interacting on-chain. This approach is key to driving adoption and making Web3 games more accessible to mainstream gamers.
A Glimpse into the Future: 2025 and Beyond
As the industry continues to evolve, it is clear that sustainability, innovation, and player-centric design will be crucial for GameFi’s success in 2025. With the rise of new technologies and the growing demand for immersive gaming experiences, the future of blockchain gaming looks bright.
Conclusion
Blockchain gaming faces several challenges in 2025, but with a focus on player-centric design, innovation, and sustainability, the industry can overcome these hurdles. By prioritizing user experience, integrating new technologies, and building sustainable token models, game developers can create engaging and rewarding experiences for players. As the industry continues to evolve, one thing is clear: the future of blockchain gaming holds immense potential.
