Why Web3 gaming needs a Steam-like platform for growth

As Web3 games continue to gain attention, OKX believes that a Web3 version of Steam, one of the most successful digital game distribution platforms in Web2, is necessary to support the development of the crypto gaming ecosystem.

In July, the company launched OKX GameSphere as part of its efforts to accelerate Web3 gaming. The platform allows developers to integrate Web3 elements like non-fungible tokens (NFTs) and cryptocurrencies.

OKX chief innovation officer Jason Lau told Cointelegraph that since its launch, developers have been receptive and appreciated the help with Web3 mechanics, user experience, liquidity and distribution.

Crypto games flourish despite Steam ban

Steam is a widely popular digital gaming marketplace offering chat and multiplayer features. It enables players to connect and play online games with friends. The platform is expected to generate $8.8 billion in revenue by 2028 and attract millions of active users daily, with peak usage reaching 34 million.

When asked why Web3 needs a Steam-like platform, Lau said that while Steam has successfully distributed Web2 games, it lacks Web3 elements. According to Lau, the platform “set a high bar” for Web2 gaming but does not have decentralized economies and true digital ownership. Lau explained:

“This prevents game developers from creating new gaming experiences, implementing innovative business models and building deeply engaged communities.”

In October 2021, Valve, the firm behind Steam, removed blockchain-based games from its platform and advised users not to publish content on crypto or NFTs. The video game developer issued rules saying that applications that issue crypto or NFTs are prohibited from its platform.

While Steam blocked crypto gaming, the ecosystem flourished on Web3-native platforms. Lau explained that since GameSphere launched, it had onboarded Web3 games from a football simulator to a Web3 massive multiplayer online role-playing game (MMORPG).

The executive added that it will continue onboarding MMORPG games that integrate Web3 mechanics and games based on The Open Network (TON).

On July 29, gaming-focused blockchain Ronin recorded 2 million daily active users, surpassing other active blockchains. Sky Mavis co-founder Jeffrey Zirlin previously told Cointelegraph that this spike in activity showcases the “hardcore community” they’ve built since the release of their popular play-to-earn (P2E) game Axie Infinity.

Web3 gaming is still in its early stages

Despite its success, Lau believes Web3 gaming is still in its early stages. The executive said that games have not figured out how to fully take advantage of Web3 elements. Lau explained:

“While there have been breakout hits, progress has not been steady, and engagement has come and gone. Games haven’t really found the right balance on how to surface and take advantage of Web3 elements.”

Lau believes that for Web3 gaming to succeed, there needs to be continued experimentation and focus on unique game mechanics that make game content fun and engaging. This would allow games to build a sustainable community that breaks out of the Web2 game mold.

Lau added that developers should also focus on cultivating communities by educating players on the benefits of Web3 technology.