I didn’t expect an event in London to close out the year after we had two significant conferences canceled in 2023, opting for our neighbors over the channel. Zebu has been running for three years now, and as an unemployed crypto bum, what else would I be doing on a Thursday and Friday?

To my surprise, there was a small gaming track on the first day with three talks and the Degens Den panel. So I hopped on the DLR (which has nothing on the Lizzie Line btw) and traveled all the way to Woolwich in Saff London.

How Can Web3 Gaming Go Mass Market?

Moderator: Melanie Dow (Communications & Content, Blockchain Gaming Alliance)

Speakers: Francis Brankin (Head of Economy, SHRAPNEL), Jeremy Foo (Global Head of Gaming, Trilitech), Jon Hook (Co-Founder, Playember)

Summary

Who are mainstream users and how are they different from web3 and play-to-earn (P2E) gamers?

• The mainstream user is too broad of a group, both Candy Crush and League of Legend players are mainstream.

• Your target audience does not exist, specificity is key.

• GameFi is gamified finance rather than fun core gameplay.

• Mobile users are coming from the App Store and Google Play, mass market just want to play a fun game and don’t care about what engine is used or what chain its built on.

• SHRAPNEL’s approach is a web2 FPS with extra experiences on top that users can participate in if they wish.

• Earning money in games isn’t exclusive to web3 nor a new behaviour.

What are key challenges to onboard mainstream users?

• Advertising costs are high due to blockchain's reputation and history of scams and coupled with the negative outlook of gamers means improving legitimacy in the space is costly.

• App stores, especially Apple's, pose UX challenges (recent case study with Mythical Games’ NFL game), pushing developers towards browser experiences.

• Clear, jargon-free communication is essential to convey game value.

• Reducing friction is crucial, from mobile interfaces to wallet setups.

• Might see a change in culture, renaming “wallets” to “player account” to make them more relatable to the Web2 experience.

• Gradually introduce players to blockchain, keeping initial interactions crypto-free.

Where do you see blocking technology helping user onboarding?

• Gamers are no strangers to account setups. The challenge with web3 is to make the wallet creation process as intuitive as signing up for a new game, abstracting away the crypto but not lying about what you are creating it for.

• Tailored onboarding experiences can be a game-changer. By leveraging insights from player activity, much like live ops used for revenue strategies, developers can craft more engaging blockchain integration strategies.

• If a gamer is already used to making purchases in-game, the spending behavior is there, just need the education to change from fiat to crypto.

• At its core, blockchain is just another database system. The transition for players should be as seamless as switching from one game to another; the Web3 and Web2 experience should feel the same.

• The idea is to introduce players to the world of crypto organically, maybe after they've made significant in-game purchases or achievements.

What does blockchain education look like for you users?

• By closely monitoring player behavior, developers can pinpoint moments of confusion or hesitation and address them proactively.

• Ideally, blockchain integration should be so intuitive that it mirrors players' in-game behaviors, eliminating the need for extensive education.

• Before diving deep into blockchain education, it's crucial to ensure players are firmly anchored in the game's ecosystem.

• Players should only delve into the nitty-gritty of blockchain if they express a genuine interest. Otherwise, there's a risk of overwhelming them and breaking their immersion which may lead to churn.

What genres or types of games could unlock mass onboarding into web3?

• Games that allow players to invest into IP - trade based economies (such as Parallel) and assets that have emotional attachment from grinding to get it.

• The overarching goal is to bridge the gap between familiar web2 gaming experiences and the new territories of web3.

• Everyone has a common goal to move players between games in web2 as people will play different games for different reasons.

• Blue Ocean games, such as Call Of Dragons, which emphasize resource allocation, social status, and leaderboard dominance, could be pivotal in driving web3 adoption.

What do mass market gamers want from web3 games & do they like the current choice of games out there?

• Developing AAA games is a long-term commitment, often requiring significant capital. However, the vast mobile gaming market, especially in regions like SEA, offers immense potential.

• While there are games that offer earning opportunities, their sustainability during bear markets remains a concern with value based on in-game tokens.

• The concept of interoperability is intriguing, but major franchises are often protective of their data and IP, posing challenges for widespread adoption.

• Indie studios, with their innovative approaches and willingness to experiment, are poised to redefine the web3 gaming landscape.

What do you see in the coming year and future of web3 gaming?

• The focus is shifting towards developing robust tech infrastructures capable of supporting vast player numbers, total web3 playerbase at any time is still less than those active on just CS2.

• The gaming community is buzzing with anticipation regarding upcoming game releases and potential shifts in Google's gaming policies that projects can position them for in case they are enabling rather than restrictive.

• For a seamless gaming experience, blockchain speed, Transactions Per Second (TPS), and finality are crucial.

• Tools that simplify the transition for web2 developers to craft web3 experiences are in high demand.

From the audience - What are VCs are looking for and what stage of investment are they coming for?

• Modern VCs are increasingly emphasizing tangible metrics like player retention, revenue figures, community engagement, and the playability of the game.

• Collaborations with established publishers can significantly mitigate risks for projects seeking VC funding.

• Games that have entered the soft launch phase and showcase promising metrics are more likely to attract funding compared to just a concept.

• Startups need to critically evaluate their VC readiness, considering alternative funding avenues like angel investors and non-dilutive grants.

Takes

The Web3 Experience

As we’ve said time and time again, for the next generation of gaming, web3 should not be a genre but rather a tool that game developers can use to improve game experiences further. Players, especially those from traditional game space, should feel comfortable jumping into a blockchain-powered game like any other new title.

Throughout the panel, Francis reiterated the stance of SHRAPNEL’s approach to gaming. Have solid gameplay (in their case, a competitive FPS) with a blockchain asset layer that users can discover if they please. With a web2 deployment, this asset system adds another layer of enrichment for players but not doesn’t enforce this for all. This is something that others are doing, too, even Yuga’s mech brawler Wreck League.

Another point is that once players get to a point where they may want to learn more about blockchain, the backend technology should be there to be discovered but not hidden. We talked about this last month with the fallout of Creator League. Blockchain has a reputation to beat, and there is a big difference between abstracting away technicals for user experience and hiding the use of blockchain in your project.

Engagement Before Education

Of course, all blockchain nerds want to onboard the next billion users. More users means more adoption, and many think gaming will be the vehicle that takes us to the moon. Education is vital, but too early, and you can scare away a potential new crypto convert.

When engrossed by a new title or favorite game, we will go to whatever lengths to play and keep playing. Last night, I updated my Nvidia drivers, which screwed up my Counter-Strike grind, fully tilted with rolling back updates and launch options. I persevered to earn (and lose) that sweet, sweet ELO.

With Web3-enabled games, you need a baseline of compelling gameplay. Once players are engaged and confirmed through live ops metrics, you can slowly introduce blockchain elements to learn. Drop in crypto talk too early, and you risk your users churning. We talked about the dedication of engaged CS:GO players in our first article. We’ll jump through hoops and happily spin up an Alipay account with a travel wallet to load up on Renmimbi (RMB) to access the best skin liquidity and prices through the Chinese exchange Buff163.

Where the karambit chads at?

About Interoperability

Ownership is one of the key features of blockchain tech that advocates lean on when educating about its benefits. The thing is, ownership means nothing without interoperability. During the wind-down of Warzone 1, the crypto community on X was screaming from the rooftops that tokenizing your skins would solve the value loss from the game shutting down. So, in an ideal world, players would own those Warzone skins, but what's the point if they had no utility in the new game?

In recent events, look at the transition from CS:GO to CS2. Many users, myself included, had skin values rise or fall through the floor based on the updated looks in Unreal Engine 2. A single, centralized developer made that decision. Imagine all the different considerations in a game trying to integrate another franchise's IP. The Open Metaverse Alliance (OMA3) is looking to tackle the technicals of interoperability between ecosystems through their working groups, but we'll discuss this more in the Metaverse Zebu talk post. For now, you can learn more from their website.

As Jon said, the endless opportunities that indie studios have, as they are not chained to a board or shareholders, are exciting. When you pair that with a deep community involvement empowered by blockchain governance systems, we see games genuinely owned by their players (shout out Dark Forest).

Conclusion

One of the big takeaways and reassuring themes was that it was comforting to hear web2 success and learnings being referenced during the talk. To name a few, Candy Crush, League of Legends, and Counter-Strike. Sometimes, with some of these panels, it's easy to go down the blockchain rabbit hole, and if you start losing crypto enthusiasts, there certainly is little hope of convincing a traditional gamer. These points were just three of a sea of great takes from the talk, so I recommend watching the discussion (or the whole day of main stage talks) from day one on the stream below.