Riftstorm faces several external threats that could hinder its success in the competitive Web3 gaming landscape. The studio must navigate challenges such as intense competition, regulatory uncertainties, and technical vulnerabilities. This report will provide a detailed analysis of these challenges and their potential impact on Riftstorm's sustainability.

• The challenges of balancing Web2 and Web3 integration, which could lead to technical and creative compromises.
• The risks associated with regulatory changes, particularly in data privacy and play-to-earn mechanics, which could disrupt the game's economy.
• The competition from other Web3 games, which may offer more advanced blockchain integration or stronger community engagement models.