Sebastien Borget, Co-Founder and COO of The Sandbox, Co-Founder of ArtVerse, and President of the Blockchain Game Alliance, recently shared insights on LinkedIn on the evolving landscape of web3 gaming. With years of experience in both blockchain and gaming, Borget has been at the forefront of efforts to integrate decentralized technologies with interactive entertainment. His commentary focuses on the inherent risks of the industry, the importance of embracing failure, and the structural challenges that web3 games currently face.

Understanding Risk and Growth in Web3

Risk vs Growth in Web3

Game development has long been recognized as a high-risk venture. Regardless of the business model—whether it is Web2, Free-to-Play, Premium, Play-to-Earn, or built within the web3 space—the chance of commercial success remains low. Many projects never reach a sustainable user base, and shutdowns are common. Borget notes that this reality is not unique to blockchain games. Instead, it reflects a broader truth across the gaming sector: even promising ideas often fail to gain traction.

Despite this, Borget believes failure should be viewed as a step toward future success. Every unsuccessful project provides valuable experience to the development teams, allowing them to refine their approach and potentially succeed in the future. This cycle of trial, error, and learning is an integral part of building games, particularly in an environment driven by emerging technologies.

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The Role of Innovation in Web3 Gaming

Crypto games differentiate themselves through the introduction of blockchain-based features such as digital asset ownership and token-based economies. These innovations open new possibilities for how games are played and monetized, but they also introduce additional complexity. Borget raises the question of whether the added layers of financial and technological innovation make web3 games more prone to failure than their traditional counterparts.

While blockchain features can enhance player engagement and offer alternative revenue models, they do not guarantee success. The complexity involved in integrating these systems can hinder game development and create barriers for users unfamiliar with decentralized technologies. Nevertheless, Borget sees these challenges as part of a broader learning curve within a young and still-developing industry.

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Fun and Engagement Remain Central

One of Borget’s key observations is that no matter the platform or technology behind a game, it must be enjoyable to play. The core measure of a game’s success is often linked to how long users engage with it and whether they are willing to make in-game purchases. These indicators reflect the game’s ability to deliver a meaningful and enjoyable experience. In the context of web3 games, the presence of blockchain features alone is not enough. Developers must prioritize game design and player enjoyment if they hope to sustain long-term engagement and revenue.

The Missing Role of Distribution Platforms

Another issue highlighted by Borget is the lack of support from blockchain networks in distributing and promoting games. In the early stages of console and mobile gaming, platform holders such as Apple, Nintendo, PlayStation, and Xbox played a critical role in helping developers reach new users. These companies invested in infrastructure and visibility, which in turn drove adoption.

In contrast, blockchain networks have not yet assumed a similar role. According to Borget, the expected network effects—where value and users flow freely across games on a shared chain—have not fully materialized. As a result, many web3 games lack the visibility and user acquisition support needed to grow. This shortfall limits the liquidity and network potential that were initially associated with the web3 model.

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Looking Toward the Future of Web3 Gaming

Despite the current limitations, Borget remains confident in the long-term outlook for web3 gaming. He acknowledges that the industry is still in its early stages and anticipates that blockchain networks will eventually provide stronger support for developers. As the ecosystem matures, improvements in user experience, platform infrastructure, and game quality are likely to make web3 gaming more sustainable and appealing.

In summary, web3 gaming continues to face a range of challenges, from high failure rates and development complexity to limited platform support. However, these issues are not unique to blockchain games. They reflect broader patterns seen throughout the history of the gaming industry. For Borget, the key lies in recognizing failure as part of the growth process and maintaining a focus on delivering enjoyable, engaging experiences. As the technology evolves, the potential for new and successful business models in gaming remains strong.