Sony, Square Enix Entry into Blockchain Gaming Signals Industry Maturity as User Friction Drops

Crypto Gaming Companies Pivot from Token Rewards to Building Connected Gaming Experiences

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  • Blockchain Game Alliance reports onboarding friction in gaming decreased from 79.5% to 53.9% year-over-year.
  • 66% of blockchain gaming projects still face credibility challenges and scam associations.
  • Major studios Sony and Square Enix enter blockchain gaming through layer-2 solutions.
  • 71% of respondents cite digital asset ownership as primary blockchain gaming benefit.
  • Industry shifting from token economics to seamless Web3 integration in background processes.

Blockchain gaming adoption shows significant improvement as major studios enter the space, while persistent skepticism remains a primary challenge, according to a new industry report from the Blockchain Game Alliance (BGA).

The report indicates substantial progress in user experience, with onboarding difficulties dropping 25.6 percentage points from 2023 to 2024. This improvement comes as established gaming companies like Sony and Square Enix integrate blockchain technology through layer-2 solutions.

Asset Ownership Drives Adoption

BGA President Sebastian Borget emphasized the centrality of player empowerment in the sector’s growth. Digital asset ownership emerged as the primary attraction, with 71% of survey participants identifying it as blockchain gaming’s principal advantage.

The industry has shifted focus from explicit cryptocurrency elements toward subtle blockchain integration. According to the report, platforms are reducing visible crypto components like:

  • Token economies
  • NFT marketplaces
  • Cryptocurrency wallets

Evolution of Gaming Economics

The play-to-earn model, which gained prominence in 2020, has evolved significantly. Andrew Campbell (Zyori) identified two major flaws in early implementations:

"The original play-to-earn model suffered from hyper-inflationary rewards that grew uncontrollably with user adoption and a lack of sufficient token sinks to create deflationary pressure," Campbell stated in the report.

New concepts emerging include autonomous worlds (AW) and fully on-chain games (FOCGs), representing complete blockchain integration of game mechanics and economies. Gillian Pua, chief of staff at Sovrun, explained to Decrypt: "With on-chain transparency, AWs also provide the perfect foundation for AI Agents to thrive, enabling intelligent, adaptive gameplay that responds to real-time player behavior."

The integration of Artificial Intelligence with blockchain infrastructure suggests potential for advanced gaming experiences, though implementation details remain under development.

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