Level 10: Web3 Gaming Thesis -- Web3's Barbell Impact on Gaming
Web3 will bifurcate gaming into indie '1000-true-fans', and build the next gaming giants
Web3 Will have a Barbell Impact on Gaming (Villages & Citadels)
Web3 will be used in two main ways for gaming: [1] creating cozy, warm-crypto communities, (Villages) [2] creating next wave of venture-scale gaming companies. (Citadels)
Web3 will be used as a supercharged Kickstarter (we’ve discussed this in Level 4 of Metaversus: games/game studios that can survive with 1,000 true fans). Richard Kim calls this warm crypto -- positive-sum crypto that will create fertile soil for new sustainable on-chain communities. Villages will need their own tooling and support.
The other portion of web3 gaming, Citadels, will cannibalize both AAA and Free-to-Play by harnessing web3 tech for incredibly efficient unit economics — for go-to-market, user acquisition, retention, virality, and LTV. The playbook1 is being established as we speak, and I continue to place my chips along this axis.
In Web2, the cycle enders were Machine Zone, Tencent, Take Two, Zynga, Supercell, etc. In Web3, we will have new cycle-enders and winners, that can deliver venture-scale returns. Especially those that know to build tech that everyone else will need, and those who can use the web3 playbook to develop a long-term competitive edge.
Tell your friends.
We have a lot of work to do.
We are so back.
DM me on Twitter (twitter.com/0xRyze).
Some names for this: Free-to-Own, Play-to-Earn, Play-to-Airdrop.
The problem with web3 now is it's not a "super-charged Kickstarter" ICOs don't really exist now, and so you're at the mercy of web3 funds who are gate keepers deciding what is and what isn't allowed to get made. Then keep the majority of the upside for themselves. It goes against the entire ethos of web3. This is why meme coins are so big this cycle.