A Moment to Regroup
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Last week was a quiet one, giving everyone some much needed time to catch up on their favorite games. The web3 space digested the events of Korea Blockchain Week and prepared for Token 2049 in Singapore. Nevertheless, there are still some important things to digest:
- Google is opening up for web3 gaming ads
- Gamers find creative ways to exploit Starfield
- Runescape gamers stand their ground
- Megan Fox and Jean-Claude Van Damme join Mortal Kombat 1
- Prices for content are going up
- E3 Conference is looking for a makeover
Let’s dive in!
Google is Opening Up for Web3 Games
Starting September 15, Google will allow advertisements for games utilizing NFTs. This is a logical next step after the earlier revision of the Google Play store policy to allow games utilizing NFTs. However, the ban will only be lifted on non-gambling and wagering games.
This is a welcome sign for studios in the web3 space, as it makes self-publishing a lot easier. Furthemore, the change should put further pressure on Apple to further open up its ecosystem for games utilizing web3 technology.
However, the language used in the notice is something to be weary about. The text uses the phrase “NFT games” reinforcing the unfortunate stereotype that web3 is either a business model or a game type. This notion is something the web3 space will need to address.
Gamers Exploit Starfield Systems
Regardless of how big the budget is, and how successful the game becomes, gamers will find loopholes. There will be behavior patterns that developers will not foresee and aspects of the game that QA teams will not be able to fully safeguard.
Starfield has quickly become a popular title, and just as quickly gamers have found ways around its systems. Two creative ones have been the “infinite money” vulnerability and the “unbeatable ship design”.
Readers may have noticed that I keep surfacing up game exploits. I believe studios in web3 need to study and prepare contingency plans. Open economies are much easier to upset than closed ones, and teams need to have strategies for dealing with the unexpected.
Runescape Gamers Stand Their Ground
Jagex is rolling back the Hero Pass. The new monetization element was introduced into the RuneScape, but gamers were outraged by the pay-to-win nature of the update. It was then decided that the unwelcome features will be removed.
MMORPGs by the nature of the design can be argued to have a more involved gamer base. The players are stickier, but the studios also have a much harder time replacing them if they grow unhappy.
Perhaps that contributed to the victory for the RuneScape community. Also, the fact that Jagex had to admit defeat with Space Punks, may have made it more open to hearing the demands of the community of its prime IP.
Movie Stars Make Their Way Into Games
The line between games and movies is growing thin. Not only is gaming IP getting big screen treatment and tv series made, but game storylines and cutscenes are becoming increasingly movie-like. So, it is no surprise that more and more movie stars enter games as characters.
Jean-Claude Van Damme and Megan Fox are the latest to take on gaming personas. In light of content giants like Netflix and Amazon making their presence felt in gaming, it is particularly interesting how much content crossover we will see.
As NPCs become more and more intelligent, actor-based personalities may be able to perpetually evolve. Given the ongoing strikes it raises the question of how this will affect both the movie/tv-show and gaming businesses.
Price Are Going Up
The price of the Hulu and Disney+ subscriptions are going up, and this could be a foreshadowing of things to come for games. Jonah Blake recently shared his thoughts on where games may go from here as the $70 price point gets tested.
Studios are facing rising costs of production and a saturated discerning market. We have already seen a wave of layoffs and studios closing down. However, perhaps the answer for studios will be in recognizing that games are more than just games.
Similarly, to how some esports teams are taking the culture brand approach, game studios may need to consider a more holistic approach to their IP. Merch, tv-series, virtual experiences may all become a greater part of the business, especially as virtual experiences grow in importance.
E3 Needs a Makeover
E3 used to be a major gaming event, but after the show got canceled this year, there are lots of questions about if and how the brand will return to the conference circuit. As it stands, if there is a return it will not be in LA and it will be without ReedPop.
Studios working with web3 technology have become active participants in gaming conferences, with a particularly noticeable presence at this year’s GDC. The 3XP conference was also started this year to offer a web3 focused gaming stage.
Nevertheless, studios in web3 continue to face friction in trying to connect to the traditional gaming base. Web3 technology is often misunderstood as a business model or a game genre. Taking a more active role in gaming conferences may help the web3 space fix that.
This wraps it up for this entry. As always, if you are working on something exciting in the web3 gaming space, or are a traditional gaming team looking to explore the possibilities, don’t hesitate to reach out to any of us at Sanctor Capital. Have a great rest of your week!
Ilya Abugov (@AbugovIlya)
Disclaimer: This commentary is not investment advice. It does not purport to include any recommendation as to any particular investment, transaction or investment strategy, or any recommendation to buy or sell any investment. It does not reflect any attempt to effect any transactions or render any investment advice.
This post is solely for informational and entertainment purposes. It is inherently limited and does not purport to be a complete discussion of the issues presented or the risks involved. Readers should seek their own independent legal, tax, accounting, and investment advice from professional advisors. The views reflected in this commentary are subject to change at any time without notice.
