Player engagement in Web3 video games

Abstract

This study explores the potential of Web3 games to sustain player engagement and compete with traditional gaming models. By analysing two prominent Web3 games, “Gods Unchained” and “Axie Infinity”, the research examines the role of blockchain technologies, such as NFTs and tokenomics, in shaping player engagement. The findings reveal that while financial incentives, such as token rewards and play-to-earn models, initially attract large player bases, they often fail to sustain long-term engagement once the focus shifts from enjoyment to monetary gain. Economic incentives can drive short-term player activity but fail to retain players as token value declines. In contrast, emphasising gameplay over immediate financial rewards, suggesting that a balanced approach prioritising fun and community building leads to more sustainable engagement. The study highlights the complexities of tokenomics, where market volatility can distort the gaming experience, and underscores the need for Web3 games to focus on immersive gameplay and community involvement. Ultimately, for Web3 games to effectively compete with traditional games, they must strike a balance between financial rewards and player enjoyment, ensuring that tokenomics complement rather than dominate the gaming experience. This paper concludes that the future success of Web3 games lies in adapting strategies from traditional games, particularly in terms of player retention, game quality, and governance.