More professionals in blockchain gaming now come from a background in gaming than any other field, according to the Blockchain Game Alliance (BGA) 2024 State of the Industry survey and report.
Over half of respondents (52.5%) reported to have gaming expertise, marking the highest proportion recorded since the survey’s inception in 2021.
In contrast, blockchain or cryptocurrency specialists now account for just 10.8% of the field, a significant drop from 21.7% in 2023. For an industry that has faced great scrutiny regarding the importance of building fun-first and less financialized games, it is significant to see an increased prevalence of professionals coming from a background in gaming as opposed to blockchain or cryptocurrency, the fourth annual report said.
The report also shows that digital asset ownership continues to be the biggest benefit of integrating blockchain technology in games, with 71.1% of respondents identifying it as such. This has been the top-ranked benefit among industry professionals since the inaugural survey in 2021.
Following this, four out of every 10 respondents said that new player reward models and revenue models are the next biggest benefits that blockchain can introduce to gaming. Many respondents highlighted earning and incentivization systems for players that are only possible through Web3 technology.
Onboarding and poor user experience remains the biggest challenge in the blockchain gaming industry, according to 53.9% of respondents. However, this number has dropped significantly from 79.5% in 2023. The data reflects the industry’s focus on making Web3 games easier to access, with many moving the more technical blockchain aspects to the background.
As for negatives, 23.8% of those surveyed said they saw the crypto winter as a headwind. Another 17.3% said traditional games and platforms banning NFTs was another setback. About 14.9% cited macroeconomic events, 6.3% said security and threat protection was a negative, and 6.1% said regulatory developments were difficult.
“In 2024, we’ve seen real progress in making blockchain games more accessible, and now, industry professionals say that onboarding is less of a barrier than it was last year,” said Sebastien Borget, president of the BGA and COO of The Sandbox, in a statement. “Another major shift according to the findings of our survey is that more professionals are coming into web3 with a background in traditional gaming, rather than crypto, and that is influencing the types of games being developed, particularly those that prioritize fun and engaging experiences over complexity. The success of platforms like TON (on Telegram) highlights how simple, approachable games can really drive mass adoption.”
The report also revealed that the industry continues to fight misconceptions, with 66.3% of respondents saying they still encounter accusations that blockchain games are a scam or Ponzi scheme, the report said. A new misconception that has gained momentum in 2024 is that Web3 gaming is full of bots, identified by 29.5% of respondents.
Overall, interest in blockchain gaming increased in 2024, with three times more participants compared to the 2021 survey. However, gender diversity remains an ongoing challenge, with only 17.3% female representation among respondents.
“As market recovery continues, we’re witnessing the remarkable resilience of our industry. This year has brought significant advancements in top-tier games and strategic collaborations between leading Web2 companies and blockchain ecosystems,” Borget said in the report. “There’s a clear sense of confidence coming through in our annual survey, with more than eight out of 10 of respondents stating that theyare committed to remain in the industry over the next year, signaling unwavering dedication to our progress.”
Borget noted blockchain gaming has also expanded its reach globally, with strong growth observed in South America, the Middle East, and Africa. This marks a significant shift from the early years of the survey.
At the heart of this growth is the principle of player empowerment. Digital asset ownership remains a cornerstone, with 71.1% of respondents recognizing it as the single biggest benefit that blockchain gaming delivers. Experimenting with new models for revenue and rewards is also still top of mind for builders, reflecting our continued drive to design games and virtual economies that place legitimate value on player engagement while also being demonstrably robust and sustainable, Borget said.
“Finally, our focus on gender diversity has shown an encouraging increase in female participation following a declining trend,” Borget said. “But we are far from where we’d like to be in terms of women’s representation in the BGA, so our work continues, to make sure we include and represent all groups within our industry. Together, we build an industry that empowers players, fosters innovation, and reshapes the future of gaming.”
Traditional games and IPs transitioning to Web3 was cited as the single biggest positive impact in Web3 gaming in 2024 at 18.6%, rising from 2023, when it was ranked second at 15.2%. This is followed by traditional studios creating new IPs in web3 at 15.7% in 2024, dropping from its previously held top spot in 2023 at 19.8%. From 2023 to 2024, the percentage of survey respondents that have referenced traditional game studios remain unchanged at approximately 34% combined.
Predictions for Web3 gaming in 2025
As for predictions for 2025, those surveyed expect to see consolidation of blockchains and infrastructure into fewer alternatives. In order to survive, many of these infrastructure projects will choose to consolidate, either merging with other smaller companies or being absorbed by a larger one.
Web3 is also expected to operate in the background, instead of being overtly displayed like they were in the first generation of play-to-earn games. The prevailing view is that most individuals entering the Web3 gaming space are primarily focused on the player experience and have limited interest in the underlying technicalities. Since the last market cycle, more efforts have been put into UX and UI, prioritizing a seamless experience similar to what players would expect from Web2 games.
And AI is expected to introduce new and personalized gaming experiences. Many game developers have been exploring the applications of AI, which has been mainly used for data gathering and analysis, although some have dabbled into generative AI for development. With the advent of fully onchain games and autonomous worlds, AI will continue to become a core foundation of gaming. AI gathering data from players may evolve to a point where it enables personalized experiences, ranging from providing recommendations based on player behavior to adjusting in-game interactions.
The industry expects that there will be enhanced interoperability as well among the blockchain gaming infrastructure. Interoperability will shift from being a technical feature to a cornerstone of gaming identity, fostering interconnected economies, collaborative storytelling, and a unified sense of progression across the metaverse.
And lastly, decentralization is expected to take root in esports. Esports competitions have always been centralized systems where key organizers and game developers hold authority over all major decisions. These entities often determine the direction of a game’s competitive scene, including the format, qualifying teams, and prize pool of tournaments. Decentralizing these systems could create esports that are more closely aligned with community interests. They can include more teams, vote on changing the format, and contribute to prize pools. Decentralized esports will unlock more possibilities for gaming.
Methodology
Now in its fourth year, the annual BGA State of the Industry Report was conducted, analyzed, and compiled by Web3 advisory firm Emfarsis, a task the company has done since the BGA’s inception. The report covers adoption, careers, innovation, growth, and other key developments.
To make the report more comprehensive, respondents come from professionals across the different sectors within Web3 gaming, from content creators to journalists, C-level executives, government officials, researchers, investors and more. The results help give insights into the current state of blockchain gaming and its trajectory heading into the following year.
In 2024, the BGA partnered with consulting firm Emfarsis for the fourth consecutive year to conduct its industry survey, featuring 19 questions on careers, industry growth, adoption, and challenges. The survey ran from August 21 to September 29, 2024, and was distributed through the BGA Member Database, LinkedIn, email, X, and Telegram, with additional responses gathered at events such as Gamescom Cologne and TOKEN2049. Of 716 responses, 93 were excluded as incomplete, leaving 623 valid responsesfor analysis.
The 2024 survey received 623 valid responses, an 18.4% increase over 2023 and nearly three times that of the year before.
The Blockchain Game Alliance (BGA) is an organization committed to promoting blockchain within the game industry. The BGA’s goal is to spread awareness about blockchain technologies and encourage adoption by highlighting their potential to foster new ways to create, publish, play, and build strong communities around games. The group has 350 members in 50 countries.
