Wolves DAO Files #18: 'Bury the Blockchain' or Shout it from the Rooftops?
Exploring whether new Web3 games should mention they're using Web3 tech or not, and whether there's a balance to be struck.
Intro
In Web3 gaming, a crucial question is emerging: should its inner workings be open or kept private? A recent discussion among the Wolves highlighted that the answer isn't straightforward; it's a bit more complex. Since this industry is still quite new, there isn't a clear roadmap to success. As a result, different approaches were explored in the article, offering potential ways for studios to proceed.
Different Approaches
In this conversation, three main strategies emerged for studios to address this challenge:
Reveal Web3
Conceal Web3
Hybrid Approach
The choice between these options, whether 1, 2, or 3, relies on the studio's goals and business strategy, which will we touch upon.
Depends on funding and GTM.
Very well funded and 3 years to ship, no need to run a web3 marketing plan. Need to raise more to ship, then must build a great community that can potentially monetize. Fast GTM, then utilizing Web3 to build community and generate momo makes sense.
1. Showing Web3 Features
In the first approach, gaming studios incorporate Web3 terminology like 'blockchain,' 'NFT,' or 'Earn' into their marketing materials. This deliberate tactic aims to attract the community of NFT and cryptocurrency enthusiasts, addressing their desire to uncover new opportunities.
The decision to follow this route is significantly influenced by the amount of funding and the chosen market strategy. For instance, if a studio is well-financed by venture capitalists and has a substantial financial runway spanning multiple years, there might be less necessity for a dedicated Web3 marketing plan. However, when a studio requires additional capital to develop its game and adopt a swift go-to-market approach, it can be logical to engage with the Web3 audience. This decision is grounded in the potential benefits of rapidly enhancing brand visibility and fostering community growth.
But if their goal is to build in web3, hype up in web3, get web3 investors, get a successful genesis mint, and develop another strategy to expand, I guess then can just replicate what successful projects have been doing. Depends on their strategy tbh.
Furthermore, the nature of the game being developed also holds considerable sway. Games like DeFi Kingdoms (DFK), which are early Web3 entries, take on characteristics of gamified decentralized finance protocols, effectively targeting the Web3 demographic. This approach is fitting for games that heavily revolve around in-game economies, gambling elements, and similar features. However, for the majority of games to achieve what is conventionally defined as 'success,' they must appeal to a broader market, necessitating a strong emphasis on captivating gameplay.
Benefits of Option 1:
Web3 is relatively compact and less saturated, resulting in fewer contenders. This dynamic implies that ventures with a novel and relatable product geared toward their intended target audience (ITA) can swiftly attract a substantial user base.
Web3 incentives play a pivotal role in cultivating a committed community of early adopters who are enthusiastic about endorsing and championing the game.
Downsides of Option 1:
The use of Web3 terminology could potentially be overwhelming or confusing for players who are not well-versed in the technology.
Building upon the initial point, it's worth noting that there is still a prevalent negative perception surrounding Web3 games. Consequently, this negative backdrop has the potential to discourage a significant portion of potential players right from the outset.
Web3 games constitute a limited niche within the gaming industry, which poses difficulties in attracting a wider audience and achieving mainstream success.
Example: CCP Games
Back in March of this year, CCP Games, renowned for their creation of EVE Online, unveiled their plans to develop a blockchain-based game. The announcement generated substantial enthusiasm and interest among the Web3 community, offering them an entry point into this industry. However, in contrast, a notable portion of EVE Online's fan base felt disillusioned and discouraged by this announcement.
The only hyped comments are from web3 people excited by the potential smell of money, most others are gamers that are already bashing the game because the only exposure they got from crypto was scammy shill by influencers and failed Ubisoft NFTs.
Given that CCP Games is already recognized in Web2, it remains intriguing to observe whether the studio's Web3 project will encounter limitations in terms of growth potential due to this strategic choice.
2. Subtle Use (Hiding) of Web3
The second strategy deliberately refrains from incorporating Web3 terminology and excludes it from promotional efforts. The objective here is to craft a gaming experience that resonates with a broader spectrum of players, avoiding the intimidation factor associated with intricate blockchain terminology. This approach strives to captivate traditional gamers who might not be actively seeking out Web3 encounters, yet could derive advantages from the game's supplementary features.
I actually got a lot of heat for this because people said, "BRUH, why even make a web3 game if you're going to bury the blockchain?!" thinking I meant - don't use web3 to turbocharge the game.
What I meant was Blockchain should be the technology that lights up new experiences, not the primary reason to use a product.
Gaming studios that opt for a more subdued emphasis on blockchain attributes typically possess substantial funding from venture capitalists and boast a more extended timeframe for development. This enables them to steer clear of concentrating solely on the cryptocurrency enthusiast demographic.
Just look at any big title - not a single one mentions the tech utilized to build the game
Benefits of Option 2:
By refraining from using Web3 terminology, a significant portion of players can be spared from initial discouragement.
The advantages of digital ownership can be gradually realized by players through their own exploration, possibly fostering greater player acceptance over time.
Downsides of Option 2:
Subtle integration might not promptly capture the attention of the Web3 community, potentially missing out on a committed audience.
A more gradual growth aligned with Web3 principles could lead to a slower initial uptake, demanding increased efforts to establish a robust community base.
Example: Metapixel
An illustration of a studio employing this approach in the Web3 space is Metapixel, the developer behind the MMORPG "Gran Saga: Unlimited." In this case, the gaming experience is engaging and of superior quality. The game's blockchain attributes become apparent only when a player intentionally opens a separate menu and interacts with the wallet option. This unobtrusive method of introducing NFTs and token-based monetization techniques is designed to minimize player attrition, ensuring a more seamless and immersive gaming experience.
More examples include:
NinoKuni Crossworld
Stella Fantasy
Kingdomverse: Defend the Kingdom
The Hybrid Model
Similar to the second option, the hybrid approach presents itself as a promising choice. Captured by the following statement:
As a whole the Web3 space is still really new meaning there are some gaps in the market for a couple of games to really take up most of the userbases interest. If they're successful, they could port well to traditional userbase, some games are trying to utilize the following model;
Build, Test, Polish = Web3 Audience
Scale = Traditional
With this model, studios can leverage Web3's strength: community. By establishing an initial base of supporters, studios gain access to crucial insights and feedback that can be harnessed to refine their offerings. These dedicated audiences also serve as valuable sources for identifying product-market fit (PMF). Once a game demonstrates potential, it can subsequently be expanded beyond the realm of Web3 through strategic marketing investments
Separate Marketing Campaigns
A member of the Wolves DAO suggested adopting this approach through distinct marketing campaigns:
All that said, I think the ideal marketing strategy (and what we're planning to do at Koin) is to have two entirely separate marketing campaigns: one for web2 gamers that doesn't mention web3 at all, and another aimed squarely at web3 gamers.
Although the exact strategy to cater to the preferences of both groups independently remains uncharted territory, it's deemed to hold promise. For the Web3 audience, this type of marketing campaign is likely to underscore NFTs and tokens, while for the Web2 audience, the focus would shift toward game mechanics, loops, and player engagement.
Benefits Hybrid:
Harness the advantages of Web3 communities while also pursuing widespread acceptance.
Employ the Web3 environment as a trial space to determine a game's Product-Market Fit (PMF).
Downsides Hybrid:
Facing the potential challenge of failing to captivate both Web3 audiences due to inadequate appeal and subsequently disappointing Web2 audiences upon discovering NFTs, which could lead to negative perceptions.
Conclusion
In the Web3 gaming industry, the choice between revealing or concealing the technology is a multifaceted challenge. This exploration into different strategies reveals three key paths: openly integrating Web3 terminology to attract enthusiasts, subtly incorporating blockchain features to engage a broader audience, or pursuing a hybrid model that leverages Web3 communities for testing while transitioning to mainstream appeal through distinct marketing efforts. Each approach has its merits and complexities, underlining the experimental nature of this evolving field where strategic decisions hinge on studio goals, resources, and the desired player demographic.
Special Thanks To
Dub, XSET Rep Pygo, Jryann, RobinDS, Donnie, Clay_Phi, TanyoG, Whexon, NF_Tcaff, Starboeii, Taiji, Ceddy, Chief_NFT, Behold3r, Sh3k1n4h, JaseTheWizard, Tobinaalan, TheNPCEO, and Kevin | Koin Games 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.