Web2 Vs Web3 Games

On the 3rd of March, Pontem hosted a panel discussion at MoveCon featuring top professionals from the gaming industry, including Metapixel, Starspace, and OpenDive. The topic of the discussion was Web2 vs Web3 games.

You can listen to the full recording on Twitter or YouTube.

Meet the Speakers:

• Chad Garrett: Co-founder and CEO of Starspace, an NFT Marketplace and Launchpad building on Aptos. Chad is an OG in the Move space and also very prominent in the Twitterverse, he is the leader of NFT-Fi Illuminati, an exclusive collective of GigaChad NFT-Fi founders, investors, and liquidity providers.

• Joseph Lee: Business Director at Metapixel, a Web3 initiative of Npixel – one of the largest game development companies in Korea – Metapixel has partnered with Aptos to facilitate the mass adoption of Web3 games by building a metaverse that features high-quality games where player-owned economies can come to life.

• Irvin Cardenas: Co-founder and CEO of OpenDive Technologies, an end-to-end gaming studio that focuses on building the infrastructure related to gaming as well as gaming experiences. OpenDrive is one of the core contributors of the recently released Unity SDK for Aptos – a set of tools that enables developers to build multi-platform applications with ease.

Exploring the Potential of Web3 in Game Development

Web3 has revolutionized the gaming industry as games can now be linked to other markets and economies such as DEXes, NFT marketplaces, and DeFi platforms. This allows for a wider gaming experience, but it also brings limitations.

For example, certain items may affect the power balance within the game, and the distribution of NFTs can make it difficult to maintain a sustainable gaming economy.

However, Web3 technology provides tools to analyze and solve these problems. With on-chain data, a fair system can be created that secures ownership and benefits for players who participate and contribute in various ways. This opens up new possibilities for game design and development.

To fully explore the potential of Web3 in gaming we need to look at it from the standpoint of creators and players:

• For creators: Incorporating blockchain technology can be both good and bad. On one hand, it allows for innovation and new ways of designing games. On the other hand, it takes away some of the control game developers have over their games.

• For players: Web3 technology provides ownership and traceability of game assets. This means that changes to the game, like buffs or debuffs, can be more transparent and players can have more of a say in how their gaming experience evolves.

Connecting Publishers and Players: How Web3 is Bridging the Gap

Conventional gamers and game developers don't always get along. Even when developers release regular updates, some players still feel uneasy and distrustful. This can cause conflicts and make gamers feel like they can't trust what the developers say. But, there may be a way to build trust between the two groups using blockchain technology.

The Metapixel team has come up with a technique called "proof-of-play" to deliver more transparent information regarding their game – Gran Saga Unlimited (GSU). The idea is to use hashtags as a random generator to show how in-game economies are formed. This data will be recorded on the Aptos blockchain and accessed by players through a GSU Explorer.

There are several exciting ways in which Web3 can foster trust between game developers and players, including:

1. Implementing NFT features: By using NFT features, players can prove ownership of in-game items and even trade them with other players. This creates a new business model for the gaming industry and can help build a stronger community around the game.

2. Enhanced Accessibility: Unlike CEOs of large companies, Web3 founders are often very accessible through social media and community forums. This can make it easier for players to connect with developers and feel like they are part of a community.

Bringing Publishers and Gamers Together: Strategies for Success

To achieve success in bringing publishers and gamers together, several strategies can be implemented. However, there are two main strategies to consider to create a more equitable and inclusive gaming ecosystem that benefits all parties involved:

• Value chain and wealth distribution: It is important to identify which agents and regions benefit from successful game sales, and acknowledge the value that gamers and the community provide to the industry. This can be achieved by creating a fair value chain that benefits all parties involved.

• Communication and feedback loop: A strong communication and feedback loop between gamers and game developers is essential to improving the gaming experience for everyone.

Measuring Success in Web3 Games: Beyond Traditional Metrics

Game developers are always trying to create more engaging and rewarding experiences for players. They want to know how to measure the success of their games and keep players interested.

Even with the use of blockchain technology in Web3 games,  the basic metrics for measuring success in the gaming industry – such as how many people play the game, how often they play, and how much money the game makes – still apply.

One interesting thing to consider is that in the future, more people may be interested in trading gaming assets rather than playing the game itself. This means that the success of a game might not just be about how many people play it, but also about how many people trade the game's assets.

The Impact of Market Conditions on Web3 Games

Market conditions can have a significant impact on games built on Web3, and developers must consider these factors when developing new games to ensure that their games remain productive and engaging, regardless of the market condition.

Since the transition between Web2 and Web3 will not happen suddenly, finding a middle ground between fully on-chain and traditional games could help sustain the prices of in-game items. This is because if we put everything fully on-chain, the system may not be stable, and users might not want to engage with the game due to market fluctuations.

Conventional key performance indicators (KPIs) such as revenue, growth, and average session length are not enough to measure success in Web3 games. Metrics like the velocity of money and how players interact within the game's economy can be more useful in judging the success of Web3 games.

How to Onboard Players from Web2 to Web3 Gaming

While traditional gaming models have been around for decades, Web3 gaming brings in new concepts like tokens and NFTs, making it a whole new ball game altogether.

For many gamers who grew up playing classic games, transitioning to Web3 gaming can be overwhelming. One of the key challenges in onboarding these gamers to the web3 space is making the user experience less frictional and more accessible.

A good starting point is to introduce a free-to-play model. This can help gamers ease into the new concepts and gradually understand the value of tokens and NFTs.

Web3: Revolutionizing Gaming Communities

The emergence of blockchain technology has revolutionized the way gaming communities are formed. Prior to the launch of gaming projects, communities are already being formed, made up of fans who are excited about the game's upcoming release. Through the purchase of tokens, fans are given early access to exclusive content and features, further strengthening their ties to the game.

However, maintaining a strong and inclusive community can be challenging at times. Issues such as exclusion and lack of participation can arise, which could potentially harm the overall success of the game. To address these issues, game developers can utilize certain strategies to engage with community members, and implement in-game features such as achievements and community engagement to foster a stronger sense of community.

Furthermore, tracking community engagement and revenue generation data could help developers delegate responsibilities and create sustainable revenue streams for core contributors.

The Power of Collaboration: Exploring Partnerships between Gaming Communities

Collaboration is often a key element in bringing new ideas and concepts to fruition. This is particularly true within the tech industry, where communities thrive on the synergy created by founders and developers working together to create new tools and systems.

However, while the potential benefits of collaboration between gaming communities are clear, the nature of these partnerships remains largely unexplored. Integrating unique elements from other communities into games could enhance the gaming experience and attract new audiences.

Developing these relationships through long-term partnerships could lead to exciting new collaborations and an enhanced gaming experience for all involved.  

The Transition to Web3: Challenges and Opportunities for Web2 Gaming Companies

Web2 gaming companies looking to expand into Web3 face several challenges and barriers. One of the main issues is adjusting their business models and revenue streams to fit the new technology, which could be risky and may not immediately generate revenue.

Moreover, it can be difficult to entice gamers who lack knowledge of Web3 and its underlying technology to enter the emerging market. Furthermore, the Web3 space presents challenges such as limited storefronts, marketing tools, and regulatory issues, which can pose operational difficulties.

To surmount these challenges, Web2 gaming firms intending to transition to Web3 must prioritize providing a captivating and enjoyable user experience to attract more players to the market. Additionally, they must enhance the existing state of the market, such as storefronts and marketing tools to make it easier for players to find and engage with their games.

ABOUT PONTEM

Pontem is a product development platform that enables global financial inclusion through blockchain technology. Pontem is developing infrastructure and decentralized tools for the fastest and most scalable Layer 1 blockchain – Aptos.

The Pontem Wallet is the gateway to the Aptos ecosystem available for Chrome,  Firefox, and iOS. Pontem Wallet users can send and receive tokens, connect to decentralized applications, and explore the Aptos ecosystem.

As a result of its partnership with Aptos, Pontem has developed foundational dApps like the Move Playground IDE, Liquidswap AMM, and ByteBabel code translator.