And we’re just lifting its dead body…
It’s time for the Web3 gaming industry to admit some chilling truths. Thousands of projects have grown – some geographically – and nearly all of them have crashed, hard. The explanation for “why” is simple, but ugly.
The Play-2-Earn concept is a great one. Earn money playing video games! Of course, the pattern is more complicated than that – money doesn’t come out of thin air! The value has to come from somewhere. Unfortunately, the value that P2E gaming offers, except for a few exceptions (please call Splinterlands, The gods are not trainedand I’m sure at least a few others), stemming from property speculation. “OH, I There is no use value for this $2000 virtual land. I just bet someone is willing to pay $10,000 for it.”
Indeed, there have been winners in every ecosystem. Unfortunately, Web3 games often sum to close to zero – there right are winners and losers. In the worst case scenario, the only winners are the developers who sold the project. All users become losers, surrendering precious capital to assets that have no value. I’m not afraid to be uncompromisingly transparent – my own project, Draco Dice, starts this way (although there is a happy ending at the end of the article). Consumers believe that there is an exit strategy to be worked out that will allow them to hoard thousands of digital dice so that when interest in the property grows, they will hold more assets that demand, and therefore the value, has skyrocketed. Although I personally have tried to dispel the illusion that my NFT exists to provide profit for everyone, the illusion persists strongly.
In the best case scenario, the “winners” in the Web3 ecosystem are those who understand better. They know that money will run out, user growth will slow, and everyone still holding will just hold a useless bag. Smart people exited early. On this point, I was also humbled – naively believing that tens of thousands of dollars worth of assets I held would rise to even greater heights by some miracle in increasing user engagement.
After thoroughly destroying my own financial ethos for you here, I must now justify my confidence in future winners.
No matter how complicated the term has become, I’m undeniably a “gamer”. It’s someone who has a passion for Game. The problem is that the game industry outside of Web3 has been slowly eroding the consumer agency. If you’re trying to succeed with a Web3 game, you should know this – but here’s a quick history lesson to help you catch up.
How did we get here?
First, the gamer owns the physical vehicle. Compact disc and game box. Afterward, Steam and other great communication take over with digital distribution. Suddenly, the majority of games are no longer physically produced and can only be offered digitally – but the majority of digital games are not. own. Instead, consumers have purchased a license to access the software. Of course, this license can be revoked at any time and for any reason. Now with Games as a Service (GaaS) becomes an industry standard, consumers have even less rights! All the work you put into the online experience can disappear as soon as the developers decide turn off the server.
In other words, gamers own nothing but their hardware (and even that is debatable given the EULA and ToS provided by the console and operating system manufacturers).
I’m deep, deep in the gaming pit and I never go out – my skin is pale, and my eyes have adapted to the harsh blue light of the screen. Therefore, it is clear that the potential for increased agency for gamers powered by Non-Fungible Tokens will be phenomenal. Think about it – we can really own games, again. We can really own assets we bought or earned in a game and even took them outside the game for extra utility. We can sell them with the help of the developers instead of arranging illegal transactions through black market sites (I’m not ashamed to say I used – we don’t have the right to option). And we can resell games if we decide we’re done with them.
If you are the person I intend to read this article and you share my love for games, then this vision of the future will excite and inspire you.
However, if you contrast it with the reality of what Play-2-Earn has done for us, something looks terrible, terrible.
Fun fact check
The first lesson the P2E industry should learn is that “the game has to be interesting first and the revenue second”. That lesson has yet to be fully disseminated. Button-click token manipulation tools have ruled the Web3 game beyond the aforementioned exceptions, and even then, “fun” continues to be an afterthought for the most of it. Web3 games are designed. No one plays this because they’re having a good time with the experience itself. Everyone goes after those sweet, sweet signs. Those are all rocket emojis and calls to HODL, just like anywhere else in crypto.
This is not a game!
The idea of making a living playing video games doesn’t exist right now – anywhere. It’s a lie and a scam. Prejudice about survival is damned – of course who will make a profit. Acknowledging this fact has changed implications for me, as I realized that there is no way to sell Play-2-Earn to actual players.
Trust me – gamers can smell crap, and due to the lousy rap that Web3 has been given with loads of scams and pumping and selling, P2E haunts them. Exactly.
You and I – we see the hard benefits players can get from participating in the Web3 ecosystem – but in the end, Web3 Gaming can’t be about Web3. No Play-2-Make Money Where We Will – but we maybe still provide agency and revenue. We just need to stop selling games like they are there because friend can make money. STOP! To disrupt the gaming market, this is what needs to be done.
This is a gold mine, right here. Build great games that aren’t bound by Web3 and provide beneficial Web3 utility along with great gameplay.
I promised a happy ending sooner. This is what myself and my team have been working towards. Yes, we are selling NFTs, but they go unnoticed. They are not stars. The only kind of game that can become sustainable is one that players want to play over and over again – because they like it. That’s why I personally gave it an L for the short-term outcome of a very successful Draco Dice debut – because it doesn’t matter. What? To be important is the benefit that NFT can convey to the players play to play.
How to save Web3 Gaming
For example, when I launched Draco Dice, it was to create a standard for game assets that have utility in multiple games. This will happen in just a few months – we have are also developing Draco Dice: Skirmish and Draco Dicesweeper together. Both can be played with the same Draco Dice NFT – providing real, undeniably utility that has never existed before in the massive world of video games. With that on the table, what’s next?
Web3 needs to reach gamers where they are. Players don’t care about wallets, tokens, exchanges or any of the financial instruments we fight for profit. Players are interested in game. I’m not suggesting at all that we’re obfuscating that we’re putting Web3 technology to work – however, I’d recommend using a language that gamers are already familiar with. Gamers understand XP level, battle pass, currencyand even market – but we had to streamline the experience of interacting with Web3 to circumvent what might be considered a barrier to entry – such as the requirement to create a manual wallet on it – or that chain beyond the username structure /password/2FA that gamers are used to.
Final, Speculation must be loosened or eliminated as much as possible. Retail investors dilute the purity of a product that is ostensibly intended to be enjoyed as entertainment. A community full of people who want to exit at a lucrative rate is not the same as a community full of people who want to know when the next content update is due because they want to personally experience more of your product. One is here to play. The other is just here to make money. To achieve this, the ability of retail investors to enhance the perceived value of gaming NFTs must be directly attacked.
The most obvious way to achieve this is to continuously reward the game and not offer high value assets outside of the game. Retail investors have easy access to high-value properties in thousands of other places – but if we’re serious about getting into the game ourselves, none but the players get there. skill, advancement and engagement must have that kind of strength.
If all this had to be done, one would certainly be inclined to ask how there were exceptions leading to the death of Play-2-Earn – and the answer was those exceptions went in this direction. Splinterlands and Gods Unchained are built on great gameplay, aiming for players to have a great time. Do they both have to keep selling new assets to survive? Yes, of course! But that’s no different than any other game studio that has to regularly release new DLC, battle pass, or other microtransactions. Ultimately, the revenue must be revolving.
Play-2-Earn is dead, and much of Web3 still doesn’t recognize it. There is money today, there will be money tomorrow, and the decay of P2E will be a gradual process – but just as the pundits advise to treat the bear market as a “construction market”. ”, I must point out that the meat is in the process of rotting. The absence of flies is not considered a sign of health.
We can build better products and services than this, and that’s where the future champions of Web3 are now asserting their claims.
Inner article image credit: Provided by the author; Thank you!
Featured image credit: Cottonbro; Bark; Thank you!