All About Web3’s Footprint; From Gaming Industry To Gaming Economy

Web3 and the metaverse are two of the most popular terms in the tech world at the moment. According to Crunchbase, a “cascade” of investment into blockchain systems has resulted from investor interest, with recent fundraising rounds like Polygon Technologies and Alchemy totaling $650 million.

Gaming is one industry that is garnering more attention than the others. A collection of heavyweight investors, including Bill Ackman, billionaire, and Animoca Brands, unveiled a new Web3 venture fund focusing on the metaverse, gaming, and social applications in early March.

With the promise of token-based incentives, Web3 is altering the way games are planned and built, rewarding and engaging consumers and developers. The change away from the traditional gaming paradigm is so significant that, in a few years, we will no longer speak to gaming as an industry, but rather as an economy.

This shift is already happening. In the current business model, a small number of gaming studios generate the majority of money by carefully managing the release of big-name games like Call of Duty or Player Unknown: Battlegrounds.

These games are typically developed in a black box, and intellectual property is rightfully protected as the studio’s most valuable intangible asset. Studios spend a lot of money on web campaigns to promote their games. It’s also difficult to find game creators because there’s such a small pool of talent to match the enormous demand for fresh gaming material.

However, things are changing. Roblox and other games are pioneering a new form of user-generated content (UGC), effectively crowdsourcing creation to legions of enthusiastic players and fans.
There are also active “modder” groups that produce modified versions of games or in-game scenarios, which are frequently hosted on private servers.

This is a win-win situation for gaming studios that adopt this concept. It ensures a continual stream of new content for players without forcing the company to have developers on staff.  Game content creators are compensated for their labor, resulting in a new stream of revenue. Through word of mouth and viral content, such an approach encourages more organic marketing.

The Web3 approach embeds economics into the game’s core, resulting in open, decentralized worlds where anybody can join and contribute to the construction or be rewarded for playing. Web3 games don’t need to engage viewers with CGI-style graphics or complex plot developments thanks to this model. Instead, the emphasis is on asset ownership, community building, and interaction-based involvement.

Additionally, Web3 is blurring the lines between gaming and finance. Assets in Web3 games can be transferred to other contexts where they have value and are exchanged on the open market using decentralized exchanges. Gamers can also use these assets to secure loans through DeFi apps by staking them as collateral.

Other marketing and branding opportunities will develop as a result of this climate. Luxury labels are currently collaborating with game developers, and soon brands will woo a new breed of gaming influencers in the new gaming economy, who will be able to draw the largest audiences for their game assets in decentralized metaverses and Web3 applications.

The esports sector began with the rise of the MOBA (Multiplayer Online Battle Arena) genre, which puts teams against one another. One of the best aspects of the transition from gaming industry to gaming economy is that it does not try to outdo or replace the existing gaming industry model.

For enthusiastic fans who seek shiny gameplay, game studios will continue to produce their flagship titles.
In the end, everyone who enjoys gaming will gain from the change.

(Photo/Credit: Parilov

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