Web3 Gaming Secures $12B+ as AI Speeds Up Development Cycle

Photo by Immo Wegmann on Unsplash

In recent years, the web3 gaming industry has seen a significant increase in its funding. Since 2020, the industry has received investments worth well over $12 billion thanks to the intersection between the gaming and crypto industries. With many projects relying on the play-to-earn mechanisms, there has been a surge in the funding of the web3 gaming industry, with indications that 2025 may be the year that web3 gaming goes mainstream.

Cryptocurrency plays a huge role in web3 gaming, same with mobile devices, particularly Android. Crypto wallets for Android devices have become a necessity for gamers who desire a smooth way of interacting with decentralized apps. With crypto wallets, gamers can store digital assets that can be used or acquired from the games, manage NFTs, and make in-game transactions. These wallets allow users to buy, sell, swap, and stake cryptocurrencies. With this functionality, gamers can engage with many gaming platforms and take advantage of opportunities to earn tokens in the web3 gaming space. 

In addition to increased funding and crypto intersection, the integration of artificial intelligence (AI) into its game development has positively affected the industry. According to Robbie Ferguson, the co-founder of Immutable, a blockchain gaming Layer-2 solution, AI has caused game development timelines to drop by about 65% in the past twelve months. 

He also stated that this reduction in game development timelines will likely lead to increased AAA game launches this year. Traditionally, AAA games (pronounced “Triple A games”) are high-budget and high-profile video games developed by industry leaders. For example, Call of Duty: Modern Warfare II by Activision. In the web3 context, they are blockchain-powered games aiming for the same quality and blockbuster status as traditional AAA titles. For example, Ethereum-based Illuvium. 

The Role of AI in Web3 Game Development

AI has changed the Web3 gaming space by accelerating gaming development processes. The AI in game market is expected to reach about $2.89 billion by the end of 2025 and $5.75 billion by 2029.  AI has helped in automating tasks such as coding, asset creation, and testing, giving developers the time to focus on developing more innovative and user-friendly gameplay experiences. This automation has now reduced the time and cost it takes to develop these games, while developers and stakeholders now pay more attention to creating more complex games and releasing these games on time, which is a key determinant of the success of the game.

​AI also helps with real-time analytics and the management of in-game economies. By incorporating AI into the system, the games can adjust their interface and difficulty levels based on the preferences and performances of players. It analyzes the player’s data and helps keep the in-game economy fair and balanced. AI also allows for a more immersive gaming experience as the creation of adaptable non-playable characters (NPCs) provides players with dynamic interactions over time. 

The Road Ahead for Web3 Gaming

For web3 gaming, the goal going forward is to sustain the flow of investments while leveraging the power of AI as the industry grows. With 2025 predicted to be a crucial year, the industry will look to successfully integrate new technological processes into its already existing frameworks, with reliance on financial backing from investors. However, the industry will need to be wary of regulatory issues that may arise as it looks to provide a good system for its growing player base. By successfully addressing these issues, it would usher in a new era of gaming experience that will help the industry attain its full potential.