Champions Tactics, Ubisoft's Web3 tactical RPG, faces several external threats that could impact its sustainability and growth in the competitive Web3 gaming space. The game must navigate a rapidly evolving Web3 gaming landscape, characterized by intense competition, regulatory uncertainties, and technological advancements.

• Competition from other Web3 games threatens Champions Tactics's market position, as new entrants constantly innovate and attract player attention.
• Regulatory changes pose risks to the game's tokenomics and play-to-earn mechanics, particularly in regions with stricter blockchain and NFT regulations.
• Volatility in cryptocurrency markets could destabilize the game's economy, affecting player earnings and in-game asset values.
• Player fatigue with play-to-earn models may reduce engagement, as many Web3 games struggle to maintain long-term player interest.
• Network congestion or high gas fees on Ethereum could deter players, despite Champions Tactics's use of the Oasys blockchain for scalability and efficiency.
• Security vulnerabilities, such as smart contract exploits, could erode player trust, especially if competitor games demonstrate stronger safeguards.
• Negative publicity around NFTs and environmental concerns could harm the game's reputation, particularly among more environmentally conscious players.
• The entry of major traditional gaming companies into the Web3 space could threaten Champions Tactics's market share, as these companies bring significant resources and established player bases.