Web3 and Games Part 1: The What, Why, and Why Not (Yet)

Welcome to The Business of Games Podcast, brought to you by Xsolla.In today’s episode, Xsolla’s Chris Hewish and Lia Ballentine kick off a three-part series on Web3 and gaming, cutting through hype and backlash to explain what the tech actually does for players and studios.For decades, digital items lived inside walled gardens. Players acted like owners anyway by trading, reselling, and modding in gray markets that created value but invited fraud and frustration. Web3 introduces tools that could legitimize those behaviors: blockchains for transparent ownership, NFTs as verifiable receipts, tokens as programmable currencies, wallets that travel with players, and smart contracts that automate royalties and rules.Joining us are two guests on the front lines. David Kim, a publishing and marketing leader and Web3 advisor, explains that the real unlock is legal and economic clarity, preventing studios from being forced into being middlemen. And Mark Long, CEO of Villain Studios and former CEO of SHRAPNEL, argues that Web3 should be invisible “plumbing” with no wallet friction, no jargon. Just secure provenance behind fun-first games.Together, we explore why early projects stumbled (speculation-first design, clunky onboarding, rug pulls, and environmental concerns), what regulations like the Clarity Act could change, and how a shared-economy model might reward developers, creators, and players without compromising the game.From defining core concepts to separating signal from noise, this episode lays the groundwork for understanding Web3’s real potential in the business of games and what needs to improve before it earns players’ trust.Whether you’re a studio founder, product lead, or marketer, you’ll leave with a clear vocabulary, cautionary lessons from P2E and “metaverse land,” and practical criteria for evaluating Web3 features that actually enhance gameplay.Let’s get into it.For more insights and resources, visit xsolla.com/podcast. Want to join the conversation? Follow and comment on our LinkedIn page at The Business of Games Podcast. That’s where we’ll be sharing updates, highlights, and continuing the discussion. And don’t forget to subscribe, rate, review, and share the podcast with friends who want to learn more about the business of games.