Why Web2 Game Publishers Avoid Web3

GM GM, Hope you've all had a wonderful start to your week.

Today's lootbox contains

• Why Web2 publishers avoid Web3

• Are we seeing a new trend in Crypto?

• The Sneakies

Why Web2 Game Publishers Avoid Web3

For those of us continuing to ape across the NFT and Web3 gaming world, it is no surprise to hear that traditional game companies haven't been too keen on NFTs these past few years. Unfortunately, this trend seems set to continue, with both Microsoft and Rockstar banning the sale and use of NFTs in their respective game servers (Minecraft and GTA). This comes just under a year after Microsoft stopped assisting game developers with its blockchain as a service called Azure, and offloaded its customers on Consensys Quorum.

It's tough to say what exactly caused this rash turnaround and disdain, however earlier last year we saw Steam also take a hard stance banning ALL games that had any type of NFT or blockchain aspect. Gabe Newell (President of Steam's parent company VALVE) cited crypto’s volatility and the bad actors existing in the NFT space as reasons for the ban.

So what's the big hoopla? Can't these companies see the values created in these user-generated servers? Or is it simply a business decision? It's no secret that Web2 companies are doing everything in their power to clamp down on the NFT revenue stream. Just last month we saw Apple making wild attempts to take 30% of Ethereum gas fees on apps that send NFTs like the Coinbase Wallet App. Here is what Don Norbury CTO of Neon had to say about this to Blockworks.

The primary issue, he suggested, is that Rockstar and Microsoft don’t make any direct revenue from NFTs. The secondary issue for these companies is optics, strategy and regulation.

Clearly, incumbents would not save Web3 games. Innovators will.

So how can builders innovate and get their games accepted by the mainstream? It comes down to a strong IP and messaging. @brycent has a few words about this.

Web3 gaming messaging usually goes like this.

• Play-to-earn

• Play-and-own

• Play-and-earn

Messaging with these terms doesn't excite gamers. These are features, not the primary motivation for gamers. Consider the Fortnite playbook, as @brycent suggests. 

• Create a strong IP

• Strong IP attracts excited gamers and creates a brand foundation

• Partner with the brands for growth

Excited gamers are always willing to go through hoops to try a game - if they have to figure out how to install the game outside of the app stores, they will.

Could Graphic Novels Be The Next Web3 Buzz

Trends come and go in Web3, like days in a week. Often beginning with nothing more than a PFP collection and an idea, entire communities have spawned, thrived, and died before our eyes. We have something new bubbling, and could become a big trend.

Let's talk about comic books and graphic novels

As an avid collector myself of comic books of all shapes and sizes, and all manner of heroes, I can tell you this industry is ripe for disruption. The graphic series industry including comic books, manga, and graphic novels is riddled with problems Web3 can solve.

• Getting paid is hard - Many creators are unable to sustain a livable income from their work. You only have to peek into the manga and anime industry.

• Lack of community organization - There's no organized forum to discuss the comic industry in any formative or actionable way. One could say there's a lack of general community and peer examination.

• Lack of tools - Creators aren't equipped with tools to easily monetize their work, especially in the early stages of a career. Free to read, but special editions are released for collectors as an NFT.

• Lack of independent publishing options - Let's face it, traditional publishing of anything is a mess, and options are limited. To make it big, you must sign with a major publisher who owns your IP and wrenches creative direction from you at the first sign of trouble.

We have already begun to see some activity by the comic industry in the Web3 space. Big hitters like VeVe Digital Comics (Digital Collectible Company) already have partnerships with icon brands like Marvel and DC. This past summer, VeVe released ‘Thor #1’ by Marvel, with the first appearance of Jane Foster as Thor.

We also saw the blockchain's first true hero emerge on IMX from Blockchain Comics. Satoshi Master Of Disguise (SMOD) debuted with a presale of only 200 issues.

Our take

I smell a trend on the horizon and see an industry in need. The recipe is there, and creators are hungry for a new way forward. It remains to be seen whether comics and graphic novels will become a trend for Web3, but my gut says this is just the beginning.

The Sneakies

• GameFi company Oasys closes strategic funding round: Oasys, a blockchain gaming company, has closed a strategic funding round. The round was led by Galaxy Interactive (Entertainment VC Firm) and Nexon (a South Korean Gaming company) for an undisclosed amount.

• Baobab Studios launches Web3 collectible game: Baobab Studios is launching into Web3 with its animated storyteller collectible game "Momoguro". Players will be able to collect creatures with different abilities in the created world of Momoguro. Players can fuse their collectibles with creatures, called "Momos", to gain abilities and become "Momobeasts," a more powerful evolved form. This move comes as a bit of a turn for the company as they began making interactive films for VR.

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