Explore the current state of web3 gaming and the challenges it faces with Upptic’s own web3 experts – Jerry Singer, Dan Casale, and Mat Arias. Dive into the perception of Web3 gaming being dead, the token-VC model, mass adoption challenges, and the emergence of web2.5 games. Learn why MetaMask’s new launcher is a much bigger deal than people think and which web3-native marketing tactics and trends are best for the audience you’re trying to reach. Get insights on the types of content creators and influencers you should be working with and the role of creative and content production in Web3 gaming. Finally, learn what trends you should be watching and get advice on how to succeed in the web3 gaming space.
Takeaways
- Web3 gaming is not dead, but there is a sense of boredom and frustration.
- The token-VC model, where games prioritize tokens over gameplay, is a major issue.
- Web3 gaming’s investment model, which focuses on tokens as exit liquidity for VCs, can hinder game success.
- The need for a centralized platform for Web3 games is crucial to simplify user experience and increase adoption.
- PWAs are not a scalable solution for Web3 gaming, but integration of games in wallets like MetaMask can help.
- Bringing Web2 gaming creators into the Web3 space is a challenge due to likely backlash from their audiences.
- Providing unique and engaging experiences for users is crucial in Web3 games marketing.
- Staying innovative and true to your long-term vision is important in the fast-paced Web3 space.
Chapters
- 00:00 – Cold open and introduction
- 01:15 – Web3 gaming’s not dead – just boring
- 06:44 – Web3 gaming’s original sin: Tokens
- 13:13 – Web3 game distribution
- 19:09 – Web3 game marketing, KOLs, creatives
- 28:50 – Web3 gaming predictions
- 34:46 – Web3 gamedev tips
- 37:00 – Closing and sponsor message
Web3 Gaming’s Not Dead – Just Boring
The current state of Web3 gaming may appear stagnant, but it’s far from dead. There’s a palpable lull in the industry, driven more by the ongoing development of products rather than a lack of interest. The primary focus has been diverted to tokens rather than the actual games themselves. While numerous teams are diligently working on creating immersive Web3 gaming experiences, a truly standout title has yet to emerge. This has led to a sense of frustration among enthusiasts who feel the market hasn’t delivered on its promises.
Despite this, there’s optimism for the future. The market is in an evolutionary phase, learning from past mistakes. With a desire for instant gratification, the community has been temporarily distracted by meme tokens and drama. However, significant progress is being made in Web3-esque games, particularly those merging elements of Web2 and Web3. The industry is also battling against a Key Opinion Leader (KOL) echo chamber, where early adopters’ opinions often overshadow broader perspectives.
Web3 Gaming’s Original Sin: Tokens
The fundamental flaw in Web3 gaming lies in its investment model. Games have been able to secure enormous valuations, but these are often tied to tokens, which provide exit liquidity for the venture capitalists funding them. Tokens frequently enter the market long before the games themselves are ready, leading to widespread disillusionment among gamers.
The primary issue is this premature token launch. Tokens are meant to enhance the gaming experience, but when they are perceived as the product itself, they become a tool for speculation rather than engagement.
However, there are successful examples. Games like Pirate Nation and Parallel launched their tokens only after the games were live, providing immediate utility for players. DraftKings’ Reignmakers program is another noteworthy initiative, though mass adoption remains elusive.
Web3 Game Distribution
One of the biggest challenges in Web3 gaming is distribution. Solutions are emerging, such as Progressive Web Apps (PWAs) and launchers, but significant hurdles remain. A major breakthrough is MetaMask’s new web3 games directory – as MetaMask already has an established userbase of 30M people with the ability to distribute content to them.
However, overall, the distribution problem persists. Ironically, it may be that the industry needs a centralized platform to streamline access to various Web3 games, reducing the current need for multiple wallets. While PWAs offer an alternative by avoiding app store fees, their scalability is limited. Discovery through established platforms like MetaMask could be the key, leveraging their extensive user base to drive game adoption.
Web3 Game Marketing, KOLs, Creatives
Traditional paid user acquisition (UA) strategies are ineffective in the Web3 space, often perceived as scams to mainstream audiences who view them. Additionally, traditional content creators face backlash from their audiences when they delve into Web3, creating a barrier to broader acceptance. Instead, niche creators and KOLs have proven more effective in reaching ideal target audiences.
Successful campaigns have focused on aligning game developers with communities who are genuinely invested in the games. For instance, Parallel successfully engaged with the Hearthstone community by collaborating intelligently and authentically with Hearthstone leaders (despite initial resistance).
The role of creative content is crucial in Web3. It needs to be integrated with game development and overall strategy from the outset, in order to build a compelling narrative around the game. Additionally, a consistent content calendar can keep the audience engaged and ready to capitalize on viral moments.
Web3 Gaming Predictions
Several trends are shaping the future of Web3 gaming. Social farming is losing its appeal as it becomes overdone and less effective. Instead, the industry is shifting towards innovation over imitation, moving away from the copycat approach of mobile F2P games.
A significant trend is the convergence of Web2 and Web3 sectors, with growth likely to come from teams that build comprehensive ecosystems. There’s also a need for greater sincerity among KOLs, whose inflated prices and focus on meme coins have not always benefited the industry.
Web3 Gamedev Tips
For developers entering the market, the focus should be on creating unique and engaging experiences for players. Treat players as a community rather than just numbers. Avoid following trends – innovation and a long-term vision are key to success.
Stay true to your original vision and goals. The most successful teams are those that remain consistent with their mission, rather than chasing fleeting trends. This approach not only fosters loyalty but also better positions you for long-term success.
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