Web3 Was a Failure…Will Gaming Save it? with Chris Hewish, President at Xsolla - Modern CTO Recap
Podcast: Modern CTO
Published: 2025-11-13
Duration: 50 min
Summary
Chris Hewish discusses how the Web3 technology initially struggled in the gaming industry due to its focus on speculative elements rather than engaging gameplay. However, he believes that by integrating Web3 functionalities beneath the surface, gaming can unlock new possibilities and enhance user experiences.
What Happened
In this episode, Chris Hewish, the president of Xsolla, dives deep into the challenges and future potential of Web3 in the gaming industry. He reflects on the initial hype surrounding Web3, where significant investment led to a focus on creating speculative games that ultimately failed to deliver engaging experiences. Hewish points out that games like Axie Infinity, while somewhat successful, turned out to have fundamental issues that resembled pyramid schemes, leading to their collapse. He emphasizes that the first wave of Web3 was technology-driven, sidelining the importance of fun gameplay that should always come first.
As the conversation progresses, Hewish describes a shift in perspective towards Web3. Rather than being the focal point, Web3 is now seen as a tool to enhance gameplay and create seamless user experiences. He envisions a future where Web3 technologies are integrated into existing games to provide new functionalities without disrupting the core gameplay. This approach aims to reduce friction for users, making it easier for them to engage without even realizing they are using Web3 technology. He highlights the potential for creator economies, like those seen in Roblox, to be further empowered by Web3, allowing creators to take their assets across platforms and earn royalties as they do so.
Key Insights
- Web3's initial focus was on speculative elements rather than gameplay.
- Successful games need to integrate Web3 technology beneath the surface.
- Creator economies can thrive with Web3 integration.
- Reducing user friction is key to Web3 adoption in gaming.
Key Questions Answered
What were the initial problems with Web3 in gaming?
Chris Hewish discusses how Web3 faced significant hurdles due to its focus on speculative aspects, leading to a lack of engaging games. He notes that many developers prioritized the potential for quick profits over creating fun and interactive gameplay, which ultimately resulted in a failure to deliver compelling gaming experiences.
How can Web3 enhance existing games?
Hewish argues that the true potential of Web3 lies in integrating its functionalities into existing games to enhance gameplay rather than distract from it. By embedding Web3 capabilities under the surface, players can benefit from decentralized ownership and new experiences without the friction typically associated with crypto and wallets.
What is the role of creator economies like Roblox in Web3?
Hewish points out that platforms like Roblox already have thriving creator economies. He believes that integrating Web3 can further empower these creators by allowing them to take their assets across platforms and earn royalties, thus reinforcing the existing ecosystem while introducing new capabilities.
What does Chris Hewish think about NFTs in gaming?
According to Hewish, NFTs were part of the initial Web3 hype but did not translate well into meaningful gaming experiences. He argues that many of the ideas surrounding NFTs lacked market fit and didn't align with player realities, emphasizing that the focus should be on creating enjoyable gameplay rather than on speculative digital assets.
What is the Business of Games podcast series about?
Chris shares that his podcast, the Business of Games, is exploring Web3 through a three-part series. The first episode serves as an introduction to Web3 concepts, while the subsequent episodes will delve into current developments and future possibilities in the gaming industry, making it accessible to those unfamiliar with the terminology.