Web3 Games x Web2 Launchers: A Power Play to Mainstream or an O…

In a notable announcement earlier this year, the General Manager of the Epic Games Store revealed plans to introduce "close to 20" blockchain games to the platform. This development signifies the openness of a major Web2 launcher to embrace the technology that Web3 brings. So, the question arises:

Is mainstream adoption within reach, or are the immediate effects being exaggerated? Today, we delve into this topic, with a particular focus on Epic's role in driving this trend.

While Epic Games has adopted a cautious yet accepting stance toward Web3 games, the same cannot be said for Steam, often referred to as the "king of game distribution." Steam has taken a clear stance against publishing these types of games, permitting a Web3 game to be featured on their platform only if it is completely stripped of any connections to blockchain or NFTs. Epic Games, too, approaches Web3 games with caution due to the industry's close association with financialization, and they are prepared to take action by shutting down games that exhibit "bad behavior."

The prevalence of bad actors within the Web3 space has undoubtedly tarnished its image among gamers. Given the high stakes involved, the Web3 gaming industry needs to proceed cautiously in order to gradually secure a place within Web2 launchers like Epic Games. Any further significant scandal in this domain could potentially jeopardize the progress made thus far and impede its integration into mainstream gaming platforms.

The enthusiasm and confidence exhibited by Web3 evangelists often result in overlooking the actual impact an event can have. This is also true when it comes to projects being listed on Epic Games. It's important to recognize that making Web3 games accessible through Web2 launchers does not automatically guarantee exposure. These games still require a well-defined go-to-market (GTM) strategy to gain visibility and attract a player base.

However, it cannot be denied that enhanced accessibility to Web3 games represents a significant step forward. Currently, gamers must navigate the Web3 space cautiously, as downloading game files from websites entails substantial risks. Web2 launchers provide a safer and more accessible environment for Web3 games, eliminating friction points and ultimately attracting a broader audience of gamers.

The notion of Web3 game launchers aiming to become the "Steam of Web3" is a lofty ambition, but its feasibility must be carefully considered. The power of established Web2 launchers lies in the strong user base, extensive game libraries, inventory holdings, and the ability to connect and play with friends. It presents a challenging proposition for players to switch to emerging Web3 launchers.

For Web3 launchers to truly succeed, they must offer something more compelling than the existing moats of Web2 platforms. This entails incorporating features comparable to Web2 launchers while introducing enhanced achievement systems or leveraging clever incentive designs through NFTs. A plausible scenario is the gradual blurring of lines between Web2 and Web3, where everything simply becomes categorized as games, with "blockchain/NFT" becoming just one category. Consequently, the future of Web3 games on Web2 launchers appears promising, as the boundaries between the two begin to fade.

To be published on Web2 launchers like Epic Games Store and Steam, developers must go through an application process that involves meeting specific criteria. Epic Games Store has recently simplified this process with the introduction of the "Self-Service Publishing Flow", which allows blockchain games to apply for publication.

“Paid offers for products leveraging blockchain technology are not allowed on the Epic Games Store.”

“Links to any NFT, blockchain, or cryptocurrency marketplaces are not allowed on store pages.”

“Certain regions need to be excluded from having access to blockchain games.”

“Products must not facilitate gambling.”

“The Epic Games store reserves the right to remove products leveraging blockchain technology at any time, based on actions in the market.”

Furthermore, additional requirements must be met, including signing extra agreements, adhering to blockchain technology laws and regulations, and taking full responsibility for payments, customer support, and fraud detection. Epic Games understandably exercises caution and diligence when considering Web3 games for listing on their platform.

Publishing Web3 games on Steam is a less straightforward process, as the platform generally does not welcome these games. However, there are a few instances where blockchain games are listed on Steam, provided they remove all blockchain and NFT connections. It remains unknown whether Steam is aware of the games' original blockchain nature.

Ultimately, the path to being published on the Epic Games Store or Steam as a Web3 game involves following the application process, striving to meet all the criteria, and awaiting acceptance or rejection.

Among the 30 games currently listed on the Epic Games Store, the above-mentioned five titles stand out. Many more games are expected to become available on the platform later this year. Notably, Gods Unchained, one of the established Trading Card Games (TCGs) in the Web3 space, recently announced its upcoming availability on the platform. With a considerable player base, this game represents one of the few Web3 titles with traction.

Epic Games is emerging as a crucial pathway for Web3 games to reach a broader mainstream audience, specifically the "230 million Epic Game Store PC users." By leveraging Web2 launchers, which effectively address Web3's game distribution challenges, these games can focus on raising awareness and attracting players. The ability of these games to break into traditional gaming channels will play a pivotal role in their success and broader acceptance within the gaming industry.

When Web3 games want to be published on Steam, they lose their connections to blockchain and NFTs, essentially stripping them of their Web3 identity. As a result, the process for players to engage with Web3 elements in these games becomes significantly more convoluted compared to the accessibility offered by Epic Games. However, despite this limitation, the broader availability of Web3 games on Steam can still yield a net benefit.

The above examples represent just a few of the Web3 games listed on Steam. Currently, it is challenging to determine the exact number of Web3 games on the platform, as Steam does not utilize the blockchain/NFT tag like Epic Games uses. This lack of distinct categorization makes it more difficult for users to identify and explore the range of Web3 games available on Steam.

While this article primarily focuses on Web2 PC launchers, it is important to briefly mention the Play Store and App Store, as they also serve as game launchers. Mobile platforms offer the most accessible means of playing games, and several games have recently achieved significant player numbers in this space. NFL Rivals, for instance, surpassed 1 million downloads in less than two months. Additionally, Axie Infinity has made its entry into the vast mobile player base with the release of Axie Infinity: Origins.

There have been other positive developments for Web3 games launching on mobile app stores, such as the integration of STEPN with Apple Pay for in-app purchases (IAPs). This integration provides a familiar and trusted interface for users and serves as a fiat onramp, thereby increasing the likelihood of user engagement with the Web3 aspects. Given the importance of mobile platforms in driving the adoption of Web3 games, further exploration of this topic in a future article would be worthwhile.

Web2 game launchers offer a user-friendly and trusted environment for accessing Web3 games, providing a superior experience compared to current Web3 launchers. However, not all Web2 launchers embrace the technology equally, with Steam explicitly opposing token and NFT integration. In contrast, Epic Games is more receptive, yet remains vigilant in shutting down games with “bad behavior”.

In the short to medium term, Web2 launchers are expected to play a significant role in driving broader adoption among gamers. Looking ahead, Web3 launchers have the potential to enhance the gaming experience through improved achievement systems and other innovative features. Additionally, mobile game launchers should not be underestimated, as they are likely to contribute to the mainstream adoption of Web3 games on a larger scale.