In the world of Web3 games, we have witnessed a challenging era. From 2018 to 2023, a total of 2,817 Web3 games were launched, but sadly, 2,127 of them (75.5%) failed to succeed. This data highlights the difficulties of the industry.

Although Web3 games have yet to ignite a real boom since 2018, they often become the focus of high hopes whenever cryptocurrencies enter a new chapter. With the current bullish outlook in the market, we might soon witness several games achieving sky-high valuations.

Focusing on the years 2024 and 2025, we expect the rapid development of AI models like DALL-E, Stable Diffusion, Midjourney, and ChatGPT to make “AI’s penetration into Web3” a crucial driving force. In July, DeGame officially announced the launch of its “AI-generated game” feature, aiming to revitalize the Web3 gaming industry with innovative, interoperable, composable, and programmable tools, as well as modular models for generating games, videos, and voices.

With nearly 3 billion Web2 gamers and almost 600 million Web3 users worldwide, Web3 games have a solid narrative foundation. However, the majority of funds and projects are currently focused on infrastructure, lacking new drivers for large-scale user adoption and narrative engagement.

The core of progress in the gaming industry lies in technological innovation. As AI technology in game development matures, leveraging AI-generated models to address the challenges Web3 games face could be the best approach to achieving rapid breakthroughs and growth.

1. Breaking the Ice of the “Narrative Ice Age”

Playability has been the primary issue limiting Web3 games from attracting a large number of players. The monotonous gameplay and rough graphics often cause players to feel as if they are playing games from over a decade ago when participating in Web3 games. For regular players, there has always been only one hard standard to evaluate a game: whether it is fun or not. Web3 games that overly emphasize the “Fi” (financial) aspect can only attract gold farmers but fail to achieve large-scale conversion of Web2 users.

However, from a practical perspective, as an industry that is extremely capital-intensive and time-consuming, the explosion of the gaming sector requires the combined push of capital, time, and technology. As we move into 2024, AI seems capable of bringing these elements together. The improvement of modular AI generation tools provides stronger support for Web3 games to move toward AAA production quality and high standards.

In traditional games, NPCs (non-player characters) have very limited artificial intelligence and can only operate under fixed conditions. However, with the help of AI technology, NPCs can more realistically simulate human behavior and have more intelligent operating methods. For example, in “Save Me! The Guardian of Labor Law,” the AI NPCs engage in real-time dialogue to solve puzzles, enhancing the game’s interactivity and immersion.

Moreover, AI can also be used to generate environments, character designs, and balance game mechanics, further enriching the diversity and playability of games, making interactions in games more convenient and natural. Traditional game interactions are often based on keyboards and mice, which struggle to meet players’ needs. With AI technology, more intuitive and vivid interaction methods, such as voice, gestures, and facial expressions, can be realized.

Overall, the most successful application of AI in the gaming field is undoubtedly enhancing the gaming experience and personalizing game content. AI generation models can optimize the game development process within a short cycle, integrating multiple highlights of traditional Web2 games at a lower development cost. This helps to smooth the participation of incremental users in Web3 games, which is a crucial step for the large-scale migration of Web2 users to Web3 games.

2 Unleash Unlimited Creativity

Decentralized blockchain technology plays a vital role in balancing AI (and machine learning). It can integrate with other technologies like Zero-Knowledge (ZK) proofs to enhance the trust framework for machine learning, while also effectively utilizing long-tail resources to lower the cost and entry barriers for AI usage. Additionally, many Web3 applications prioritize security and decentralization at the expense of user experience, but AI has the potential to optimize and improve that experience—this is where AI can truly empower Web3.

When it comes to practical applications, while AI+DeFi and AI+DID/social have their use cases, generative AI is especially well-suited for gameplay styles familiar to Web2 users, such as text-based adventures, sandbox games, simulation, open-world environments, and user-generated content (UGC). By using AI to rewrite game logic, introducing more unpredictability and randomness, Web3 games can create entirely new experiences with AI.

One major innovation in Web3 games is that they involve users and platforms in the co-creation of content, rather than following a predetermined, limited game design. In these games, the concept of “Lore” is central. In traditional games, the lore is pre-defined by the designers and is entirely predictable. However, with AI models, various inputs can be combined to generate unpredictable outcomes, giving these games endless possibilities.

Imagine a future where, using AR/VR devices, we can access incredible virtual worlds and instantly create 2D or 3D objects—whether from our imagination or beyond—using simple prompts, almost like casting a magic spell, and truly own them (with data stored on a public blockchain). We could also interact with intelligent AI-driven NPCs in these worlds, influencing the entire narrative of the game. All of this would be supported by a fully transparent, open-source infrastructure.

In this vision, AI-powered Web3 games will unlock boundless creativity.

3. Rapid Evolution and Seamless Integration

The early roots of AI in game development may stretch back even further than we realize.

AI’s application in game development dates back to classics like “StarCraft” and “Diablo,” where developers utilized AI systems to create interactive virtual worlds and characters. These AI systems have since become standard in building such interactive platforms.

Early AI research in gaming primarily focused on controlling non-player characters (NPCs). As natural language processing (NLP) technology advanced, groundbreaking work began to emerge, using deep learning techniques to generate game levels.

A notable example is MarioGPT, which used a fine-tuned GPT-2 model to successfully generate levels for “Super Mario Bros.”

With the rapid iteration of AI models, their capabilities are growing ever more robust. For those in the Web3 gaming industry, the key challenge is figuring out how to harness AI to create top-quality games and integrate AI-generated models into the development process to attract and engage new users.

We hope to see the emergence of procedurally generated worlds, where each world has its own rich history, inhabitants, and mysteries. There will be interactive stories, where the narrative evolves based on the player’s choices and is told through generated images, videos, and audio, bringing more possibilities to Web3 games.

In Conclusion

To successfully create a Web3 game, developers must focus on interactivity, playability, and a compelling narrative core. It’s essential to consider the relationships between characters, design engaging levels and objectives, and craft a storyline that draws players in. Cutting-edge AI models can transform creative ideas into intricate game mechanics and narratives. With AI-driven NPCs featuring distinct personalities, developers can guide player actions, trigger story events, and enhance the overall game experience while improving efficiency and reducing development costs, ultimately unlocking new profit opportunities.

AI technology has broad applications in game development and operations, including plot design, map generation, level creation, task generation, dialogue, storytelling, model generation, and the development of in-game growth and economic systems.

This is just the beginning. We believe that continued exploration in AI and Web3 gaming will open the door to entirely new gaming worlds. As technology evolves and applications become more sophisticated, players can anticipate increasingly unique gaming experiences that push beyond the limits of traditional games, delivering even more immersive and interactive worlds. For those who are passionate about gaming and technological innovation, this is an exciting time to be a part of the industry.

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