TL; DR
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Web3 technology lends itself to ‘collector monster’ style video games and transforms the business models that support them.
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The technology is there – now we just need a game that is easy to use (from a crypto point of view) and fun to play.
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Our guess is: Like Web2’s collectible card scene, this will be a winner-take-all market.
Full story
“Imagine a Pokemon-style game where every monster you catch is represented as a tradeable NFT.”
This field feels played out, because it is!
Most major/upcoming Web3 games do just that.
(Think: Axie Infinity, Illuvium, AneeMate…Pixelmon).
Ok but why?
So many developers are working to bring the concept to market because of how Web3 technology can improve the existing business model.
Here’s an A/B comparison of a Pokemon-like game in Web2 versus Web3.
Web2
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Build/sell a game for a fixed, one-time amount.
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Players collect/trade free samples in the game.
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Create physical collectibles in unknown quantities and grow a secondary market around them (for which you as a game maker get $0).
Web3
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Build/sell a game for a fixed, one-time amount. …OR give it away for free (because the business model allows it).
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Players collect monsters for free in-game, but can buy/sell them for real money through an in-game marketplace.
Every time a transaction is made, you (the game maker) get a cut of the sale – let’s say 5-10%?
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The digital collectible market’s fees pay you forever and allow your users to play for free (and even make money by finding rare monsters).
The technology is there – now we just need a game that is easy to use (from a crypto point of view) and fun to play.
Our estimate is:
Much like Web2’s collectible card scene, this will be a winner-take-all market.
(See header image ☝️).