The most exciting part of web3 gaming

Web3 games are not only exciting because of the gameplay innovation they might bring, but the business model and distribution disruption that web3 tech unlocks.

At Tacter, we define a web3 game as any kind of game that uses web3 technology to improve its value proposition.
And what excites us the most is not the gameplay innovation that web3 would bring but the business model and user acquisition disruption that web3 unlocks.

📌 We believe that new business models and distribution strategies, on top of proven play patterns, will happen sooner than gameplay innovations.

It has already happened in the past. None of the first waves of successful free-to-play games (e.g., league of legends) had an innovative play pattern. They just improved existing ones, and a little bit later, new gaming genres emerged (e.g., hyper-casual)

We expect web3 to act similarly. Axie Infinity shocked the world in 2021 with a tier-c game (in terms of quality) on top of a proven play pattern (turn-based strategy), but unlocking exponential growth (without marketing spending) and generating an internal economy as big as AAA companies like EA or Nintendo… just by giving in-game ownership to their players on top of the promise of earning by playing.

Messari - October 2021

That was simply impossible for a tier-c game built on top of state-of-the-art models.

And, YES, it did not work in the end.

Their model was not long-term sustainable, the tech was not ready to provide a good player experience, and their player base imploded as fast as they grew, but it was enough to prove a point:

⏳ Innovation was coming. Web3 Tech can unlock a new way of doing business in gaming.

Since then, more than +$12B of funding in less than 24 months (source) has been allocated to web3 gaming startups, followed by a massive talent migration from traditional gaming to web3 gaming startups.

I’m sure this will lead to new gaming genres, innovative gameplay, and play patterns not seen before, but the innovation is more profound. Gaming business models and existing distribution strategies are going to change.

That’s what excites us the most at this moment. And it’s why we spend lots of time discussing different theses, like a new business model for web3 games or web3 games will have higher LTV than F2P, and we will talk about distribution innovation soon.

These innovations are going to happen sooner than gameplay disruptions. In fact, we’re earlier than expected. It’s challenging for a game studio to develop a web3 game with the same level of player experience as a traditional one with the tech available. Actually, web3 tech deteriorates the game experience: wallet key management is a mess, transaction signing interrupts gameplay, gas fees are a high barrier for users, etc

🤔 However, what do you think will happen when a new game with the same quality level as the current top games but using web3 tech arrives?

I’d love to know your thoughts. In the meantime, the industry has to figure out some things. Thankfully, the money and the talent are already here.

M.