MSV Podcast

Roundtable: "The New Rise of Web3 Gaming"

March 25, 2024 Morningstar Ventures Season 2 Episode 22
MSV Podcast
Roundtable: "The New Rise of Web3 Gaming"
Show Notes


Top 3 Key Takeaways from Our Guests

1. Web3 gaming has changed with recent market conditions 

At the roundtable, we asked our speakers to share their thoughts on how recent market conditions have affected the Web3 gaming industry, particularly compared to the previous cycle. The speakers agreed that in the previous cycle, many games capitalized on the success of Axie Infinity, resulting in a surge of play-to-earn games. However, due to the time it takes to develop a game, market constraints restrict availability and accessibility. Games take years to build, which means that we are yet to see progress and adoption. Nonetheless, there are some great games currently available that could succeed in the upcoming bull run. Additionally, the speakers mentioned that in this cycle, many games emphasize cross-functional assets and interoperability, which makes the ecosystem more engaging.

2. Balancing fun and financial rewards is still a driving narrative within Web3 game development

One of the speakers in the roundtable expressed skepticism about the current state of web3 gaming, citing a lack of proper valuations and an imbalance between marketing and gameplay. They believe the industry needs to focus more on creating a fun and engaging gaming experience to attract more users. Another speaker emphasized the importance of balancing fun and financial elements in crypto games and highlighted the need for iteration and user involvement. According to this speaker, finding the right balance between the two elements is crucial to ensure that the game is both enjoyable and rewarding. The third speaker shared their perspective on creating a fun and engaging gaming experience, highlighting the need for iteration and finding the right balance between information and ownership. They believe it is vital to keep the game simple and easy to understand while giving players a sense of ownership over their assets. Overall, the speakers agreed that there is still a long way to go before web3 gaming becomes indistinguishable from web2 gaming, but they are optimistic about the future and see great potential in the industry.

3. Virtual assets need to be interoperable across blockchains

The speaker suggests that virtual assets should be interoperable across different environments. With so many virtual environments emerging, it is not feasible for people to have their assets in each environment. They believe that projects making virtual assets resellable long-term across different virtual environments are crucial. The speaker thinks that a few big players will emerge as the primary infrastructure providers in the market for virtual asset infrastructure, similar to the telecommunication industry.