Originally aired on September 18, 2023
The Token2049 panel discussion on Web3 Gaming and the Path Towards an Open Metaverse featured speakers who discussed their motivations for integrating web3 technology into gaming and the potential impact it could have on the industry. The speakers highlighted the importance of digital property rights, true ownership of in-game assets, and the ability to prove the authenticity of items in an increasingly fake online world. They expressed optimism about the growing excitement in the Asian region, particularly in countries like Korea, Japan, and Hong Kong, where there is a strong entrepreneurial culture and forward-thinking approach to adopting web3 technologies. The panelists also emphasized the need for financial literacy and the belief that web3 gaming can help bring financial education to the next generation. Overall, the panelists were excited about the future of web3 gaming and predicted that the next 12-24 months will see the launch of higher quality games and an increase in the number of existing web2 companies entering the space.
Why integrate web3 technology into gaming?
The core thesis of digital property rights and true ownership remains unchanged.
The evolution of web3 gaming has changed in terms of utility but not in underlying principles.
Historical abuses by gaming companies have led to a desire for true ownership and financial engagement by players.
Excitement in the Asian region
- Asian countries like Korea, Japan, and Hong Kong have a strong entrepreneurial culture and forward-thinking approach to web3 adoption.
- Financial literacy and perspectives on capitalism in these regions contribute to the excitement for web3 gaming.
- East Asian regulators, such as Hong Kong and Singapore, are embracing web3 and providing a friendly framework for its development.
Challenges and opportunities of web3 gaming in different markets
- Adverse regulatory environments in some countries, like Korea, have not deterred excitement for web3 gaming.
- Western game development companies are hedging their bets by exploring web3 while Asian game studios see an opportunity to lead the way.
- Once a successful web3 game emerges, Western game developers will be forced to catch up.
Implications of higher quality games and the influx of web2 companies
- The underlying infrastructure needs to manage the sudden shock of higher quality games and the integration of web2 companies.
- The easy onboarding process and interoperability of assets in web3 games will attract a wider range of players.
- The ability to own in-game assets and the potential for financial gain will drive innovation and the creation of ancillary businesses.
Innovations in gameplay and unified progression systems
- The focus on mid-core games and quick iterations will lead to experimentation and the discovery of new business models.
- Unified progression systems, like the axi experience points in Axie Infinity, will deepen the emotional connection players have with their in-game assets.
- Interoperability and collaboration between game developers will result in unique gaming experiences and asset utilization.
Positive outlook and future developments
- Building IP in a bear market allows for experimentation and the creation of a loyal player base.
- The release of high-quality games and the growth of the web3 ecosystem will attract more mainstream players.
- Financial literacy and the benefits of true ownership in web3 gaming will drive adoption and change player behavior.