As a researcher with extensive experience in the gaming industry and a background in producing award-winning projects, I find myself intrigued by the potential of web3 gaming to revolutionize the global entertainment market. Having worked on cinematics for renowned games like “The Witcher” series, I’ve witnessed firsthand the power of immersive digital worlds that captivate millions worldwide.
It’s widely recognized that web3 gaming hasn’t yet gained significant momentum. Yet, for the web3 gaming sector to stand out in the international entertainment industry, it needs to emphasize its distinctive features. The current trends like tap-to-earn and similar arcade models deviate quite a bit from this uniqueness.
Through the application of blockchain technology, developers of web3 games have the ability to construct titles that grant players full ownership of their digital assets. This paves the way for innovative in-game economies and resonates with a modern player base that engages on platforms similar to Roblox.
These avid gamers often develop assets within the game and legitimately earn income from them, providing an environment where creativity is rewarded in a vibrant and honest in-game marketplace. It’s not surprising that many consider these games as potential full-time careers. This is precisely where web3 gaming could offer its ideal match.
History replays itself
Competing against the established $200 billion per year market of conventional video games might appear intimidating for web3 gaming. Yet, just because it faces formidable competition doesn’t automatically make it vulnerable.
Originally, traditional video games were a minor player in the entertainment landscape, dwarfed by the global film industry three decades ago. However, today the gaming market has surpassed this sector significantly. In 2023, the video game industry is projected to generate around $227.6 billion, while revenue from over-the-top video streaming subscriptions amounts to merely $65.21 billion. Remarkably, games like Fortnite earn an annual profit that matches roughly half of the worldwide box office receipts for movies.
In the near future, it’s possible that the current situation with web3 games will evolve as a new wave of tech-savvy users becomes more prevalent and comfortable with these advancements. As we’ve seen with gaming in the past, people might recognize the potential in this niche, leading businesses to invest in the web3 segment of the digital entertainment industry. Could this scenario unfold for web3 games in three or five years? It certainly seems plausible given historical trends.
An economy in (and of) leisure
Every year, the community of video game aficionados expands, and they find fresh grounds on emerging platforms, which often introduce innovative commercial strategies. This trend is particularly noticeable among the younger demographic, who tend to prioritize gaming as their main form of relaxation and amusement.
Adults often find themselves with less free time due to responsibilities and financial obligations, whereas children and teenagers have more leisure hours at their disposal. For instance, these younger individuals might devote 10 to 12 hours daily to a video game, a practice known as “grinding.” However, as people grow older and assume more duties, this luxury of extended gaming time diminishes significantly.
In today’s world, can one realistically make a living and even build a career around gaming? Just a few years ago, this concept might have seemed far-fetched. However, with the rise of esports competitions and streamer income, some individuals have been able to turn gaming into their full-time occupation. Yet, for many others, this opportunity may remain unattainable.
The Roblox model
As an analyst delving into the realm of popular, large-scale multiplayer web2 games, I’ve noticed something intriguing. If we scrutinize well-known MMO RPGs such as World of Warcraft or EVE Online, we uncover comprehensive financial systems that offer a unique vantage point. For more than two decades, these games have been generating revenue through players who are willing to spend real money on a variety of in-game activities, from enhancing characters to acquiring valuable in-game currency to purchase coveted items. Many skilled players even treat these transactions as their primary source of income.
Roblox stands out as an exceptional demonstration of utilizing in-game time effectively. In essence, it serves as a transition point, showcasing the potential merge between traditional web2 practices and the innovative possibilities presented by web3 models.
Roblox functions primarily as a social platform where users engage with content produced by the community. On this platform, gamers have the opportunity to develop unique assets and generate income through “Robux,” which is an in-game currency. Once they reach a specific level, they can exchange these coins for real money. Essentially, this economy is driven by creators, benefiting both the company and the players financially.
Marvel at this: My research reveals that Roblox’s monthly active users (MAU) soar to a staggering 300 million players! This platform has undeniably emerged as the go-to leisure pursuit for an entire generation of Gen Z gamers. The secret seems to lie in offering players freedom and tangible rewards, particularly financial ones, for their creativity. It appears that this approach fosters an incredible level of user engagement. The platform’s model strikes a harmonious balance between financial incentives and enjoyable gameplay.
Despite popular belief, Roblox isn’t a blockchain-driven platform. Instead, creators don’t retain ownership of their work and must pay substantial fees to earn profits. As stated on their website, only about 29% of the sale price of assets goes directly to the creator, while the remaining amount is used to cover operational costs or is kept by game developers themselves.
Web3 can balance incentives with gameplay
Embracing a model similar to Roblox, which incorporates the advantages of a decentralized and permissionless on-chain economy, might be a logical progression in gaming’s development. This could initially enable players to control their in-game possessions, eventually extending to creating new in-game economies.
From a web3 standpoint, such an approach might address the issue of subpar quality in current web3 games. By establishing a platform where users are attracted through suitable rewards, it allows game creators to concentrate entirely on crafting exceptional game mechanics, fostering healthy competition among them.
At present, many web3 games are still figuring out their direction, or in some instances, primarily catering to individuals seeking immediate profit. It’s well-known that these elements contribute significantly to the prosperity of genres like play-to-earn and now tap-to-earn. However, this blend of gaming and financial rewards has been off-putting for a significant number of gamers who have not previously encountered such combinations.
On the other hand, users who grew up with games like Roblox, Fortnite, or Albion Online hold distinct expectations. While they too desire high-quality entertainment and chances to interact with fellow gamers, the inclusion of financial elements within the gaming experience is a norm for them.
As a researcher delving into the realm of web3 gaming, it’s clear that the future lies in catering to GenZ players, who are accustomed to economic mechanics. The desire for opportunities to capitalize on their gaming experiences is growing, and we have an opportunity to meet this demand. We find ourselves at a pivotal juncture, right smack in the middle of the road. To ensure the success of web3 gaming, our focus should be on creating platforms that enhance the overall user experience, making it a potential breeding ground for the next generation’s Roblox.
Marcin Kobylecki, previously serving as both CEO of DRKVRS and CCO for Platige Image, boasts a rich background in executive production. He has been involved with the creation of numerous works, such as “The Cathedral,” an Oscar nominee, and “Fallen Art,” a BAFTA winner. These projects he oversaw garnered over 100 awards and recognitions. Additionally, Kobylecki has worked on promotional films (cinematics) for computer games, including the critically acclaimed “The Witcher” series by CD Projekt RED and “Cyberpunk 2077.”
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2024-08-16 15:31