The Wolves DAO Files #11: What is the Future of Discovering, Finding Info and Downloading Web3 Games?
Will we see Web2 and Web3 converge?
Intro
During our recent discussions, the Wolves explored various aspects of Web3 game discovery. Our focus entailed the channels through which players discover Web3 games, the sources they will turn to for information, and the methods they will employ to download and engage with these games in the coming times.
Discovery
One of the major challenges faced by Web3 is reaching a wider audience of gamers. This obstacle stems from the industry's heavy reliance on Twitter, which inadvertently isolates Web3 games from larger gaming audiences. To address this issue, certain changes are necessary.
Content Creators
In Web3 gaming, creators are emerging as the driving force behind game discovery. With a creator-oriented and more creator-friendly environment, their involvement and promotion of Web3 games to their audiences are expected to play a pivotal role in shaping the future of the industry.
A notable trend that has gained traction in recent months is the collaboration between game studios and small to medium-sized creators. These strategic partnerships aim to generate awareness for Web3 games by tapping into the established audiences of these creators. Unlike the uncertain impact of working with hype influencers, this approach ensures more targeted and authentic engagement.
In fact, I think the first Web3 game to really blow up will likely be the result of an influencer promotion or viral trend on social media. It only takes one popular influencer to start playing a game and sharing it with their followers for it to snowball into a massive success.
However, it is crucial to acknowledge the lingering negative stigma associated with NFTs and tokens, both within and beyond the gaming industry. Many creators still hesitate to embrace Web3 games due to the perceived risk of alienating their existing audience.
Nevertheless, influential figures like Dr. Disrespect are actively venturing into the Web3 space, gradually dispelling these concerns and inspiring more creators to explore Web3 gaming.
Word of Mouth (WoM) & Communities
Word-of-Mouth (WoM) has long been a driving force in the discovery of new games, and this trend extends to Web3 gaming. As games become increasingly social, players naturally feel compelled to share their gaming experiences with others.
Particularly in the mobile gaming space, WoM plays an important role, where the barriers to entry are relatively low. If player A recommends a mobile puzzle game to player B, the path for player B to download and try out the game is straightforward. The effectiveness of WoM can be measured by the K-factor, a metric that gauges the viral nature of a game.
K-Factor = [Number of Users Brought in by an Existing User / Total App Users].
Now, it is believed that Web3 marketing tactics centered around community and incentive design can greatly enhance this K-factor.
Especially for the more social mobile games, I'd expect at least someone to crack a strategy that involves "web3 marketing creating web2 installs". Even if this means higher costs per install, that could be offset by higher quality traffic and new dynamics like installing "directly into a clan".
The concept of "directly installing into a clan" or community can prove highly effective, as these groups are already formed around a shared interest. Developers can tap into these communities, which consist of individuals highly interested in specific game genres or types. Moreover, the members of these clans and communities have a profound influence on each other, and their collective engagement fosters strong retention rates—a compelling hook for players to remain invested in the game.
The stickiness of mobile gamers from traditional user acquisition isn't exactly high. Players come in with zero emotional investment, and it is very easy to move on to the next thing.Â
Web3 mobile games might have a shot at changing this.
Social Media
Social media platforms have long held significant influence on game discovery, leveraging paid and organic advertisements as well as user-generated content (UGC) to introduce players to new gaming experiences.
In the world of Web3 games, Twitter has emerged as a prominent channel for game discovery. However, its abilities are limited, as the platform is not inherently designed for game-related content, particularly in video format. On the other hand platforms, such as TikTok and YouTube (shorts), have gained traction by catering to the growing demand for short-form video content, making them increasingly instrumental in the discovery of new games.
As attention spans shorten, leveraging short and captivating videos becomes crucial to pique interest in one's games and feed players into the top of the funnel. The rise of these (short) video-centric platforms presents an opportunity for game developers to captivate larger audiences.
Videos are a faster source of info, they can be sped up, you can see gameplay if you want while you listen, etc.
Similar to Web2
There is a belief that the process of discovering Web3 games will ultimately resemble the familiar pathways of Web2 discovery.
I think many will discover these games in the same ways we always have and that will continue to advance with whatever trends we see in web2 game marketing as the line between web 2 and web3 gaming will be blurred.
However, one notable departure from traditional Web2 discovery is the remarkable potential of communities and incentives. This powerful mechanism holds the ability to generate awareness among larger groups of highly interested individuals simultaneously, a strategy that has been relatively underutilized in the conventional gaming space. By tapping into the collective influence and engagement of these communities, Web3 games can create significant buzz and accelerate the discovery process.
Where will players look for more information?
The current state of information available for Web3 games remains highly fragmented, posing challenges for players seeking specific details about games. Often, users are required to navigate multiple channels, including Twitter, Discord, and individual project websites, in order to gather the desired information.
This fragmented landscape creates significant friction, particularly for users who are less familiar with Web3 technologies. It becomes difficult for them to educate themselves about the games they are interested in, hindering their overall experience.
There's no clear place to point someone to learn about some good web3 games and how to start playing if they are interested. I don't know anywhere I can send my normie friends to go read about a cool new beta and download it to play.
To address these issues and enhance the user experience, the development of better infrastructure is imperative. A more cohesive and accessible system for looking up information on Web3 games is needed. By streamlining the process and providing a centralized hub for game-related details, players, both native and non-native to Web3 tech, will have a smoother and more efficient means of discovering and exploring the games that captivate their interest.
Review Websites
Game review websites have long served as valuable resources for readers, helping them stay informed about the latest happenings in the gaming industry and make informed decisions on which titles are worth their time and investment. However, the realm of Web3 gaming currently lacks dedicated platforms to cater to this demand.
I think there's a market for something as big as an IGN, or maybe IGN just gets on board later. But there are other game review websites and media businesses in web2 that we don't have anything comparable to here and it's something lacking imo.
The traditional gaming space has clearly demonstrated the significance of such information hubs, as gamers seek to educate themselves before committing their money and time to a game. This need for reliable reviews and insights extend to Web3 gaming.
Recognizing this gap in the market, a platform like Klick.GG has emerged as a pioneer in the Web3 gaming review landscape. Positioned as a combination of Reddit and IGN for the Web3 community, Klick.GG aims to fulfill the demand for comprehensive game reviews and information in the Web3 space. While still in its early stages as a startup, Klick.GG provides a promising starting point, paving the way for more platforms to emerge and cater to the growing needs of Web3 gamers.
Informational Videos
Content creators and media outlets have proven to be influential in the discovery of new games, and they will continue to play a significant role in helping players find more information about these games.
An interesting example of this can be observed with IGN's recent promotion of a Web3 game, hinting at the possibility that the company may soon expand its coverage to include reviews of these games. This signifies a convergence between the worlds of Web2 and Web3 gaming, suggesting that in the long run, the line between the two will become increasingly blurred. As a result, traditional gaming creators and media may start covering both Web2 and Web3 games in their content.
However, in the short term, there will likely still be a distinction between Web2 and Web3 gaming, along with the creators and media outlets that cover them. This means that Web3-focused channels and creators will continue to play a crucial role in educating players about the Web3 games worth their attention.
Communities (Discord)
Discord communities have emerged as vital hubs for Web3 gaming, but also foster some of the largest and most active traditional gaming communities in the industry. These communities are poised to continue playing a crucial role in helping individuals seek out specific information related to their interests.
The power of these communities lies in their ability to create a core base of knowledgeable users who can readily direct others to the right sources of information. With an abundance of users actively engaging in discussions, it is likely that most questions have already been asked and answered, making it easy for newcomers to find relevant information using Discord's search functions.
In Web3 gaming, Discord has become one of the go-to platforms for users seeking additional details about a project. Its vibrant communities have served as the primary source of information, enabling individuals to educate themselves and stay up-to-date on the latest developments. It is believed these communities will continue to serve an important role in Web3 gaming
How will players download and play Web3 games?
In Web3 gaming, numerous platforms are trying to become the equivalent of "Steam" in the Web3 space. However, the future of these platforms remains shrouded in uncertainty, with many unanswered questions lying ahead.
Web3 Gaming Platforms
The first scenario, and what likely will happen in the short to mid-term is that Web3-gaming-focused platforms will become the primary way for players to download and play games.
Web3 gaming-focused platforms will emerge as the primary avenues for players to download and enjoy games. Currently, many Web3 games can only be accessed through separate downloads, resulting in heightened security risks and friction that contribute to high churn rates. Consolidating a larger number of credible Web3 games on one or multiple platforms would not only enhance user experience but also facilitate game discovery.
However, it is crucial to recognize that many of the existing Web3 gaming platforms fall short of meeting gamers' expectations. To truly thrive, these platforms must undergo fundamental transformations, shifting their focus from solely financial motivations to prioritizing the best interests of players. Building compelling features that resonate with gamers and addressing their needs will be key to their success.
The one thing I will add is the way web3 platforms exist today isn’t working. every single one focuses on their own token, nft, or defi platform (grind this subset of games for more of our token). Traditional gamers don’t care about any of this.
Moreover, fostering trust, security, and convenience will be essential in creating a seamless and enjoyable gaming experience. By mitigating risks and streamlining the process of accessing and playing Web3 games, platforms can reduce friction and enhance user retention.
Elixir Games
Elixir Games, one of the larger Web3 gaming platforms, has forged a strategic partnership with Square Enix, aiming to bridge the gap between Web2 and Web3 gaming. This collaboration signifies a significant milestone in the industry, as Elixir Games can leverage Square Enix's influence to attract traditional gamers to Web3. With Square Enix's commitment to NFTs and the announcement of their Web3 game, Symbiogenesis, this partnership sets the stage for paving the way for a better transition between traditional and Web3 gaming.
Web3 Games on a Web2 Platform
Another potential scenario is the coexistence of Web2 and Web3 games on the same platform. Epic Games, a major traditional gaming platform, has shown openness towards listing Web3 games, allowing blockchain integrations and tagging them as 'blockchain/NFT' to inform their users.
Conversely, Steam, the largest gaming platform, takes a more resistant stance, requiring Web3 games to be published in a stripped-down version without any references to NFTs or blockchain.
On the other side, Web3 platforms are also embracing Web2 adoption, as demonstrated by Elixir Games integrating with the Epic Games store.
Ideally, traditional gaming platforms would fully welcome Web3 games, offering convenience, security, and access to a broader audience, including Web2 gamers. Minimizing switching costs would also greatly lower the barriers to playing Web3 games.
Game Launchers of the Future
According to one of the Wolves, the winning gaming platform will be a completely novel creation that deeply integrates Web3 features.
My gut says it'll be something brand new that's not like Steam per sé. I imagine activations like airdrops, whitelists for minting nfts, etc. will be a big part of whatever platform it ends up being. E.g. not only discovering games but also receiving special offers to go try out games based on your usage history, etc.
To attract users from existing platforms, these innovative features and incentivization methods will need to offer a distinct competitive edge. It will be interesting to observe how these features can potentially enhance user acquisition and game discoverability from a studio standpoint, potentially making it more appealing to have their games featured on these platforms.
Conclusion
In the short term, there will be a distinction between Web2 and Web3 games in terms of how players discover and access them, as well as finding relevant information. However, in the medium to long term, these boundaries are expected to gradually blur, resulting in a more unified approach to game discovery and information retrieval.
Regarding game downloads, current Web3 platforms may not offer the same level of convenience as traditional gaming platforms. However, there is a clear race to become the "Steam of Web3," with ongoing efforts to enhance the user experience and infrastructure. Whether the future of game downloads lies in a Web3-native, Web2-native, or entirely new platform with innovative functionalities remains uncertain and will be determined over time.
Special Thanks To
Blockades, The Shash, Saigo, Bogdan, Juan, Arto, Kevin | Koin Games, Zapdan, Lemz, xScogna, Donnie, StoicJay, Apix, Jryann, Steps, Cavalorn, Ceddy, and GreenGeorge for actively contributing to this discussion and providing valuable insights.
This Substack post was put together by @Web3_Memento.
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Disclaimer
None of this is financial or legal advice.