# 3. Problem Statement

**Lack of Immersive Experiences in Web3 Games**: Many blockchain-based games offer a limited or rudimentary gaming experience with poor graphics, lack of interactivity, and shallow gameplay mechanics. Player Ownership and Economy: While NFTs and play-to-earn mechanics are central to the Web3 space, the economic models and gameplay in many Web3 games are often unsustainable and fail to deliver true player empowerment.&#x20;

**Limited Innovation in AI and Game Dynamics**: Most games in the Web3 ecosystem have static NPCs and predictable gameplay. Players seek more dynamic and engaging experiences where AI adapts to their actions and the game world evolves accordingly. XR and VR/AR Gaps: While extended reality (XR) and virtual reality (VR) have gained traction in gaming, few Web3 games have effectively integrated XR technologies, which limits immersion and player engagement.
