The rise of Web3 gaming showed promise with a clear horizon ahead. It was simple but revolutionary: empower players through true ownership, open economies, and the ability to earn real value from digital achievements.

Yet, as the sun sets on that golden horizon, a hard truth has emerged—most Web3 games aren’t fun. Instead, they’ve become more about speculation and earning than the joy of play.

To truly win over the world's gamers and build a sustainable future, the Web3 gaming industry must fix fun before finance.

The Play-to-Earn Trap: When Gaming Feels Like Work

The first wave of Web3 games was typified by the “play-to-earn” (P2E) model, which exploded in popularity by promising players the ability to make money simply by playing.

For a time, this worked, especially in regions where new income streams were life-changing. But the model’s flaws soon became apparent.

Games like Axie Infinity, once heralded as the future, saw user numbers plummet as the earning potential dried up and the gameplay failed to keep players engaged.

The core issue?

When financial incentives eclipse gameplay, games stop feeling like games and start feeling like jobs. The result is burnout, player churn, and a reputation problem that the Web3 gaming industry still struggles to shake off.

Why Fun Matters More Than Finance

Traditional games—from Mario to Minecraft—succeed because they are, above all else, fun. They offer compelling stories, tight mechanics, and a sense of achievement that keeps players returning for more.

Web3 games, on the other hand, have too often prioritised tokenomics, NFT drops, and yield mechanics over the fundamentals of good game design.

It isn’t just a matter of taste. Fun is the foundation of player retention and loyalty. Without it, even the most lucrative in-game economies will collapse as players lose interest. 

As Lomit Patel, a Web3 game developer, notes: “For Web3 games to thrive in the long run, they must be fun and engaging while giving players opportunities to earn rewards”.

The Reputation Problem: Winning Back Gamers’ Trust

The rush to capitalise on blockchain hype led to a torrent of low-quality games and outright scams, which has further alienated traditional gamers and fueled skepticism. 

According to a Blockchain Game Alliance report, over half of respondents cite onboarding as a major issue, and 70% point to the misconception of blockchain gaming as a scam.

To win back trust, Web3 developers must focus on gameplay that can stand shoulder-to-shoulder with the best of Web2. This means prioritising narrative, mechanics, and user experience, not just financial engineering. 

The “Web3” label should fade into the background, with players drawn in by the game itself, not the promise of quick profits.

The Shift: From Play-to-Earn to Play-and-Earn

Fortunately, the industry is evolving. The new wave of “play-and-earn” games puts fun first, with earning potential as a secondary benefit. 

In this model, the majority of players engage for entertainment, while only a subset pursues competitive rewards, much like traditional eSports. 

This approach creates healthier, more resilient communities and reduces the risk of economic collapse when token values fluctuate.

Games like Ubisoft’s Champions Tactics and Big Time exemplify this shift, offering engaging gameplay with optional earning layers. Features like opt-in battle passes and skill-based leaderboards allow for competition and rewards without alienating casual players.

Designing for Fun: What Web3 Can Learn from Web2

To succeed, Web3 games must adopt the ways of those before them and embrace the simplicity of classic game design, which includes;

  • Compelling Gameplay: Focus on mechanics, balance, and challenge.
  • Narrative Depth: Invest in world-building and storytelling.
  • Personalisation: Allow players to customise avatars and assets with NFTs that evolve based on activity.
  • Community Engagement: Foster active, inclusive communities through transparent governance and regular content updates.
  • Seamless Experience: Simplify onboarding, wallet integration, and cross-game asset use.

The best Web3 games will be those where the players forget that they are using blockchain at all. A game where blockchain is an invisible layer and not a barrier.

The Future: Sustainable Economies, Real Ownership

Web3’s true innovation is not in “getting rich quick,” but in empowering players with real ownership and agency. 

Decentralised economies, interoperable assets, and player-driven governance can create vibrant, lasting ecosystems—if, and only if, the games themselves are worth playing.

Sustainable models like “play-and-earn” and “play-to-own” are already showing promise, balancing engagement with financial incentives. 

Layer-2 solutions and Proof-of-Stake blockchains are also addressing environmental concerns, making the technology more viable for the long term.

Conclusion: Fun First, Finance Follows

Web3 gaming is at a crossroads. Even though the initial hype has faded, the industry’s survival now depends on its ability to deliver what gamers want: fun, immersive, and meaningful experiences.

Finance can enhance these worlds, but it should never be the main event. The next generation of Web3 games must win hearts before wallets, because in gaming, fun isn’t just an option, it’s everything.

Edited by Annette George