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Earn 7.0% APY staking with Solana Compass
Help decentralize and secure the Solana network delegating your stake to us and earn an impressive 7.0% APY yield on your SOL, while supporting us to create new guides and tools.
Breakpoint 2023: Gaming in Web3 Panel
Leaders in the Web3 gaming space discuss the challenges and opportunities within the industry.
In the Breakpoint 2023 panel titled "Gaming in Web3," experts from the burgeoning field of blockchain-based gaming gathered to share insights, experiences, and predictions for the industry’s future. Panelists included figures from Zen Republic, MixMob, Honeyland, and DefiLand, who discussed the unique advantages that Web3 brings to gaming, such as allowing users to truly own and trade their game assets. They also highlighted challenges, like earning the trust of traditional gamers and creating sustainable revenue models. The conversation touched upon the importance of user acquisition and retention, as well as strategies to generate revenue and draw players from outside the Web3 space, to drive mass adoption.
The Advantages of Web3 in Gaming
The panelists highlighted several advantages that Web3 technology brings to the gaming industry. Firstly, it reinvents the dynamics of in-game economies and ownership. Players can own their in-game items as NFTs and trade them freely, unlike in traditional gaming where items are often locked within the game. Web3 also introduces novel monetization models, such as in-game crypto rewards, marketplace fees, and competitive gaming where bets can be placed on outcomes.
Challenges in the Web3 Gaming Space
Though the potential for Web3 gaming is substantial, the panelists acknowledged several challenges that need to be addressed to achieve mass adoption. Chiefly among these are creating user-friendly experiences that can appeal to both Web3 natives and traditional gamers. Additionally, there is a need for sustainable economic models to support long-term development and to avoid the pitfalls of unsustainable “play-to-earn” hype.
Strategies for Fundraising and Revenue Generation
In terms of fundraising and revenue generation, the panelists emphasized the necessity of strategic planning and clarity in utility for any issued tokens or NFTs. Ideally, a token launch should be connected to tangible in-game utility right from the outset. It was also suggested that gaming projects should focus on generating revenue through traditional in-game purchases and potentially explore revenue through associated merchandise.
User Growth and Acquisition Techniques
When it comes to user growth, diverse strategies were recommended, targeting Web3 native audiences through crypto-friendly platforms, such as Brave Browser, was considered effective. However, to reach beyond the current Web3 audience, one approach is to create games that resonate on an emotional level, free from the complexities of blockchain technology.
Facts + Figures
- MixMob, a Solana-based game, focuses on user acquisition through crypto native audiences and is generating about $4 per user in its beta phase.
- Honeyland, available on iOS and Android, generated under $200,000 in revenue last month from roughly 4,500 daily active users.
- Web3 games can utilize traditional web2 marketing channels for user acquisition as long as the onboarding process is simple and the blockchain components are seamless.
- Web3 gaming brings advantages such as true ownership of digital assets and easier monetization through in-game economies.
- The panelists warned against hyped token launches without a solid foundation of utility and gameplay.
- "It's such a wide audience that there's a ton of opportunity in Web3 gaming."
- "What would you do if an AI delete our entire culture?" - representing the storyline of MixMob
- "You manage a swarm of bees, you get honey, which is our token, HXD." - describing Honeyland
- "We just want to somehow survive and be able to entertain." - on the mission of independent Web3 game development at Zen Republic
- "It's really vital to have in-game revenue as well... to have your game operating day-to-day." - underscoring the importance of sustainable revenue models
What makes Web3 gaming different from traditional gaming?
Web3 gaming revolutionizes the player's interaction with in-game assets by leveraging blockchain technology, which enables actual ownership and free trade of digital assets like costumes, weapons, and characters as NFTs. This represents a shift from the locked ecosystems often seen in traditional gaming.
How can Web3 games generate revenue sustainably?
Web3 games can generate sustainable revenue by integrating traditional in-game monetization strategies like selling cosmetic items or power-ups, alongside blockchain-specific opportunities like transaction fees in marketplaces, betting on competitive gameplay, or creating revenue streams through selling merchandise based on the game’s IP.
What are the current challenges in Web3 gaming?
Challenges include bridging the gap between the complexity of blockchain technology and the simplicity needed for mass player adoption. There's also a balance to be struck between the initial excitement around "play-to-earn" models and the need for a stable, sustainable gaming economy that provides lasting value.
Where are Web3 game developers finding their users?
Developers like MixMob are targeting Web3 natives through venues such as Brave Browser, leveraging the user base's inherent interest in cryptocurrency and blockchain. Honeyland's approach is to access traditional game user bases while ensuring the blockchain elements are imperceptible to the user, offering a familiar gaming experience.
How should Web3 games approach fundraising?
In fundraising, due diligence on potential investors is key, as it is more important to have aligned and supportive partners than simply a large sum of capital. Developer experience suggests introducing a token or launching an NFT mint as fundraising mechanisms should be carefully considered and linked to real in-game utility.
- Key Points:
- Facts + Figures
- Top quotes
- Questions Answered