TL;DR
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Web3 tech lends itself to ‘collectible monster’ style video games, transforming 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 standpoint) and fun to play.
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Our guess is: Much like Web2’s collectible card scene, this will be a winner-take-most market.
Full Story
‘Imagine a Pokemon-style game, where each monster you catch is represented as a tradable NFT.’
This pitch feels played out, because it is!
Most major/upcoming Web3 games are doing some variation of exactly 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 enhance the existing business model.
Here’s an A/B comparison of a Pokemon-style game in Web2 vs. Web3.
Web2
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Build/sell a game for a fixed, one time fee.
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Players collect/trade monsters in-game for free.
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Create physical collectibles in unknown quantities and allow a secondary market to form around them (which you as a game maker get $0 from).
Web3
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Build/sell a game for a fixed, one time fee. …OR give it away for free (because the business model allows for it).
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Players collect monsters in-game for free, but can buy/sell them for real money via an in-game marketplace.
Every time a trade is made, you (the game maker) get a cut of the sale – let’s say 5-10%?
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The fees from the digital collectible market pay you in perpetuity, and allow your users to play for free (and even earn money by finding rare monsters).
The technology is there – now we just need a game that is easy to use (from a crypto standpoint) and fun to play.
Our guess is:
Much like Web2’s collectible card scene, this will be a winner-take-most market.
(See header image ☝️).
