Gunzilla Games' Theo Agranat: Web3 Gaming Skepticism 'Will Always Exist, and for Good Reason'

As 2024 comes to a close, the gaming industry has gradually become a new hotbed for the rise of Web3 technology.

As 2024 nears its end, the gaming industry has become the latest battleground for the rise of Web3 technology.

Once a niche subsect of gaming, Web3 gaming has surged into the mainstream over the past 12 months, capturing the imaginations of developers about the boundless possibilities that lie ahead.

Among them, Gunzilla Games has grasped these opportunities early on with its debut title Off The Grid achieving notable success this year.

In an interview with crypto outlet CCN.com, Gunzilla Games’ Web3 Director Theo Agranat discussed the obstacles to widespread blockchain adoption in video games, the potential regulatory implications on the industry, and why skepticism will always follow players around.

Catering to Ever-Present Skepticism

On October 8, 2024, Gunzilla Games officially launched Off The Grid, a free-to-play battle royale set in a dystopian cyberpunk future. The title stands out for its 150-player multiplayer gameplay and a heavy narrative thread led by Oscar-nominated director Neill Blomkamp, best known for District 9.

Apart from its rich gameplay, Off The Grid notably features blockchain technology to integrate an NFT marketplace that facilitates the ownership and trading of in-game assets. Unlike other purely Web3 titles, Gunzilla is focused on bridging the gap between traditional gamers and Web3 enthusiasts by presenting blockchain as an optional feature.

This decision may be a result of Gunzilla’s acute awareness of the widespread skepticism among players, which they believe is an inherent aspect of the industry that must be catered to.

“Skepticism will always exist, and for good reason. It keeps game developers honest and drives them to prove their worth through effort,” stated Agranat, noting that even skeptical players are often surprised once they actually try Off The Grid. It feels fully like a traditional title but offers asset ownership, peer-to-peer trading of in-game items, complete verifiable transparency, and other unique advantages brought by blockchain technology.

For Gunzilla, ensuring that traditional players can experience Web3 elements without being strong-armed into engaging is key, Agranat added. “In fact, if players wish, they can choose to completely avoid these features. At no point will these features ever impede the players; instead, it’s more like an experience they can freely choose to participate in.”

After recently launching on PlayStation 5, Off The Grid has brought in more traditional players, potentially exposing more people to the possibilities of blockchain.

Prioritizing Product, Compliance

“Gunzilla Games understands that establishing blockchain gaming at the top of the industry comes with its obstacles to overcome.”

Agranat noted that there has been a long-standing distrust between traditional media and players, as well as those existing purely in the Web3 space. However, as more traditional individuals begin to understand the appeal of blockchain, these obstacles are slowly being dismantled, the developer believes.

“We are working to gain recognition from both enthusiastic players and top-tier industry stakeholders.”

These efforts will include compliance with potential future regulatory mandates, which seems increasingly crucial especially after recent crackdowns by global regulators.

For instance, Australian Web3 gaming platform Immutable recently became the first blockchain gaming company to receive a “Wells Notice” from the U.S. Securities and Exchange Commission (SEC). The notice pertains to the company’s IMX token listing and private sale conducted in 2021, with the SEC suggesting that there was no actual value exchange between the parties involved at the time.

However, Agranat believes that as long as regulations remain reasonable, the future norms will be positive. He also stated that developers should work together with regulators rather than opposing them.

“Web3 developers and publishers need to prioritize product and compliance first, and Web3 technology second,” said Agranat. “In my view, this is a healthy direction for progress that will aid the maturation of the entire industry.”

Highlighting Transparency as Key for Web3

Agranat stated that Gunzilla Games places transparency at the core of its product development, which is also key to the growth of blockchain gaming. The German game developer recently announced that crypto venture capital firm Delphi Ventures will become the largest validator of its blockchain platform GUNZ.

According to Agranat, the venture capital firm will advise on Gunzilla’s Web3 roadmap, marketing strategies, and the implementation of in-game features, securing its upcoming utility token. The firm will also help create a dashboard to showcase the entire GUNZ ecosystem transparently to players.

“We want players, stakeholders, and partners to know that we take this very seriously,” pointed out Agranat, emphasizing that Gunzilla serves only the player community. He further stated that the labels of Web2 and Web3 have become outdated.

“In the future, regardless of the technology used to deliver an exceptional user and player experience, all of this will simply be referred to as ‘gaming,'” Agranat