The gaming industry in the Middle East – as also globally – is set to see a groundbreaking shift with the Barcelona-based Games For A Living (GFAL) gearing up to launch Web GaaS – Web3 Gaming-as-a-Service), a new gaming model globally, in the UAE.
The new model is touted as an ethical and sustainable business model that supports player enjoyment and engagement, while offering increased ‘virality’ potential and monetisation opportunities.
The GaaS model is also said to bring in an AI-based revolution in video games, leading to boost benefits to both users and developers.
For the user, the new model will open the door to more engaging video games, with AI-driven character animation or natural language processing enabling a more immersive experience, while for developers, AI-driven model will cut production costs significantly, besides enabling development of new and more customized game-play experiences.
“Existing Web3 Tokenomics and Play-to-Earn (P2E) business models awarding crypto tokens to drive player engagement come with serious issues, some of which also stray into ethical territory,” Manel Sort, Co-Founder of GFAL, told Arabian Business.
“To solve this conundrum, at GFAL we’re pioneering a bold new approach in the video games industry which evolves the proven and incredibly successful business model of F2P GaaS,” he said.
Sort said on top of the advantages of F2P GaaS, the new game model will incorporate ownership, tradeability, and standardization of all Collectibles, making games much more engaging and fun while offering increased virality potential and monetisation opportunities.
“We call this Web3 GaaS and firmly believe it will revolutionize the Web3 games industry,” said Sort, known for innovations in gaming with Activision Blizzard King and Digital Chocolate, who joined hands with Trip Hawkins, a former Apple Marketing Director, to fuel new age trends in the industry through GFAL.
Opportunities, challenges in gaming industry linked to business models
The GFAL co-founder said the opportunities and challenges for Web3 video game companies are linked to the business model.
“The first Web3 business model, built around the ownership of NFT Collectibles and popularized by games like CryptoKitties, showed they had limited revenue potential because games relied on continuous player influx, which resulted in a lower Lifetime Value (LTV).
“More recently, we have witnessed the rise of Tokenomics and Play-to-Earn (P2E) mechanics in gaming projects – models still depended on large numbers of new players joining the game,” Sort said, adding that “Tokenomics has brought on more problems than it has solved since, in the best of cases, they seriously hurt player retention, eventually killing the game, and in the worst cases, they move into gambling territory”.
The GFAL co-founder said games that allocate rewards randomly move into gambling territory, which comes with its own regulatory framework and sits outside the video games industry.
“This is an ethical issue that concerns us, and that is why we’re committed to Web3 GaaS as an ethical and sustainable business model that supports player enjoyment and engagement.”
Gaming to emerge big in MENA
The Spanish company’s decision to opt for UAE as the global launch pad for its Web3 GaaS model comes amidst projection about gaming emerging as a big sector in the MENA region, especially UAE, where millions of young people are building out careers as professional gamers.
With nearly 70 million gamers, the region is already home to some of the biggest gaming startups, and industry insiders say more are expected to set up bases or expand their operations in the coming months and years.
Recent reports estimated that nearly 80 percent of GenZs and millennials in this region, in the age bracket of 25-40, spend up to seven hours a week gaming.
“The future of gaming is all about User-Generated Content. The trend of players making their own characters, their own levels and expanding their favorite games is not going to stop.
“Yet for the digital economy to take off, you need technologies that ensure the creators own that content,” Sort said.
“At GFAL, we’re pioneering a groundbreaking shift with our own model,” he said.
New model to enable more player engagement, empowerment
Sort said GFAL’s new model will not only ensure a deeper engagement by allowing players to own and trade their gaming assets, but also aligns perfectly with the emerging trends of digital economy and player empowerment.
“We are not just adapting to changes; we are setting the stage for them, ensuring that our games remain both fun and functional,” he said.
He said their company’s new Web3 GaaS approach allows for verifiable ownership of in-game assets and introduces new layers of strategic depth to eSports.
“For instance, our tokenization of in-game assets can enable new forms of sponsorship and fan engagement, potentially allowing fans to own a piece of their favorite team’s success through tradeable assets.
“This will only increase the stake of each participant, but will also democratize how value is generated and shared within the eSports community,” Sort said.
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