Edit | Wu said blockchain

Recently, with the rise of "Black Myth: Wukong", it has attracted widespread attention in the Chinese world. However, the first investor of "Black Myth: Wukong" stated that he would never invest in Web3 games, and criticized Web3 entrepreneurs for not loving games, which also sparked widespread discussion in the industry. Binance Labs sat down with Mable Jiang from StepN, Jonny Chen, founder of Sidekick, and Michael Tong, founder of Xterio, to discuss these hot topics. Wu said authorized forwarding editing.

The roundtable panelists discussed whether high-investment, long-term games such as Black Myth: Wukong are suitable for the Web3 ecosystem. The general view is that Web3 games are currently more suitable for developing lightweight, fast-to-launch mini-games, gradually accumulating experience, and then considering large-scale productions. This is because Web3 projects lack the long-term funding of traditional games, and market demand changes rapidly. Participants noted that Web3 games should not only pursue financial gains. Although many players enter Web3 to make money, the project team needs to create an interesting game experience and enhance the depth and fun of the game through financial attributes, rather than relying solely on the "money-making effect". The panelists discussed how to balance the control of the project party with the concept of decentralization, emphasizing that the project party should be open and transparent in managing the project and minimize the reliance on NFT financing in the early stage. At the same time, they acknowledged that there is still room for improvement in the existing governance mechanism, and it is necessary to further explore how to better protect the interests of the community, pay attention to the balance between the playability and financial attributes of the game itself, and ensure the sense of participation of the community and the responsibility of the project team.

The content of this article is the view of the participants, and does not represent the views of Wu Shuo, and readers are requested to strictly abide by the laws and regulations of the place. The audio transcription is done by GPT and there may be errors. Listen to the full podcast:

Microcosm:

https://www.xiaoyuzhoufm.com/episodes/66db010dee04007d88a8c7e2

YouTube：

https://youtu.be/j46oqbmT1Ao

Brief background of the guests

Michael Tong Co-founder of Xterio

Michael Tong is the co-founder of Xterio, a GameFi project platform, and has been involved in the development of classic games such as "Westward Journey" and "Fantasy Westward Journey" in NetEase's game department. Later, he transitioned into an investor and invested in companies such as FunPlus. With the growth of Web3, he founded Xterio, which is dedicated to revolutionizing the gaming industry with decentralized technology, and is currently developing games such as RPGs, AI pets, and shooters.

Mable Jiang Co-founder of FSL

Mable Jiang is the co-founder of FSL, a Web3 game developer focused on blockchain gaming innovation. She led the team that launched products such as StepN and Gas Hero. Mable believes that Web3 can add more interesting financial elements to strategy and idle games to make games more competable, and she and her team are exploring how blockchain can enrich the gaming experience.

Jonny Chen Founder of Sidekick

Jonny Chen is the founder of the Sidekick gaming platform and has built and won championship esports teams in the United Kingdom. In recent years, he has turned his attention to Web3 and founded Sidekick, hoping to help Web3 games build a closer community and better communicate between players and developers through the platform's social interaction.

Michael shares his experience from leaving NetEase to start Xterio

Michael：

Thank you Binance Labs for arranging the arrangement, and I am honored to have the opportunity to share this topic with you. First, a brief introduction to yourself. I was involved in the development of Journey to the West in 2003 and the development of the MMORPG game for PC in 2004. At NetEase, I was in charge of the entire gaming department, and then I transformed into a professional investor and invested in FunPlus.

In terms of Web3 experience, I've actually been following the development of emerging technologies throughout my career in the gaming industry. For example, when the concept of P2E (Play to Earn) came along, I became interested in it. Back in 2018, I had already heard about the concept of Ethereum, and even though there wasn't much information about Ethereum at the time, I found some books about it, such as CryptoPunks and smart contracts, which I found very interesting.

What really got me started thinking about Web3 seriously was in the summer of 2021. At the time, we thought it was a very interesting industry, and after discussing it with the FunPlus team, we decided to start a business and devote ourselves to the Web3 industry. This is the background to the birth of Xterio. Xterio is a Web3 game publishing platform, and we are also developing four self-developed games.

Our first game is called Age of Dino, and three more games will be released in the coming months, including a pet AI game, a First Person Shooter (FPS), and Overworld, an RPG.

As Nicola says, there are a lot of people on our team who come from the traditional game industry, especially from a background in the development of triple-A games. We have a lot of experience in Web2 mobile games, and have developed many successful games on platforms such as QQ Games. Most triple-A games are developed in the field of desktop or web games, but it is relatively rare for mobile games, especially Web3 and Web2, to launch triple-A games at the same time. We hope that through the decentralized technology of Web3, we can not only develop high-quality games, but also redefine the entire game industry chain.

We believe that Web3 brings a great opportunity to the gaming industry, and through decentralization, not only can the development and distribution of games be realized, but also the entire game industry chain will be more open and transparent. We not only want to make games, but also hope to let the community and players participate in the promotion and development of games through the characteristics of Web3. We believe that Web3 can change not only the way games are made, but also the way they are promoted.

Coming back to Xterio, our platform is not only a game publishing platform, but also gives community participants the opportunity to share in the development and promotion of games through Web3 technology. We are working to reduce the cost of game development through decentralized computing power and storage technology, while allowing players and communities to participate more directly in the creation and development of games. In the future, we hope to enable more of these innovations through Web3 to drive the entire industry forward.

What do you think of the possibility of a large-scale, time-consuming, high-investment game like Black Myth: Wukong in the crypto industry?

Michael：

I feel like Black Myth: Wukong proves a very important thing. For the past 10 or 20 years, people may think that games are for children, and even in China, some parents think of games as "electronic heroin". However, Black Myth: Wukong shatters this notion by delivering the message of Chinese culture in a completely new medium and form.

For example, I have watched "Journey to the West" since I was a child, and now I can play the game of Monkey King, which is a very special experience. Sun Wukong can pluck a single hair and conjure dozens of doppelgangers, all kinds of churning, which is very interesting. It proves that games can be for all ages and can be played by all.

If gaming can appeal to everyone, then the challenge is how to translate it into success in the Web3 space. Black Myth: Wukong took 8 years to complete, and I'm not saying that it will take us another 8 years to see Black Myth in the Web3 space, but it's not an easy road. Nevertheless, everyone is working hard and I believe that although the road is long, the future is bright.

In the crypto industry, how can big games get enough financing support?

Michael：

If you only look at it from a financing perspective, I think it's not just a Web3 issue, but new technologies such as AI will also have an impact on the production and promotion of games in the future. In Web3, we have a holistic community where community members can participate through different tokenomics models and help promote the game.

When it comes to production, AI will also play a big role in the future. Difficult tasks in the past, such as problems such as models, lighting, and motion capture, may be solved with AI in the near future.

In my opinion, the most important thing is always the core elements such as the creativity of the game, the innovation of the gameplay, and the feel, rather than the level of production cost. Through Web3's decentralized computing power and storage technology, we can assign tasks to different people and reduce development costs. Therefore, the key is still in creativity and ideas, and good ideas will be more valued in the future.

What types of games are better suited for the current market?

Mable：

I think there is some truth to the point of view of many users: if they want to play a high-quality game like Black Myth with excellent graphics and a long production cycle, they don't necessarily need Web3 elements, because the experience of the game itself is enough for people to be willing to pay.

The market has gone through two phases. Axie Infinity and StepN, which emerged in the previous cycle, are more of a money-making tool than a pure game. Today, the player's behavior has become more complex, and their understanding of the mechanics has become more profound. Therefore, simply repeating the path of the past is no longer applicable.

I think players now want to combine financial attributes with Web3 to make the gambling process more interesting. Just like playing poker, the game loses fun when there is no money as chips, but players don't necessarily play to make money, but because of the financial attributes that make the game richer and deeper.

So, I think a lot of SLGs (strategy games) or idle games are great for incorporating Web3 elements. Such games can take advantage of the benefits of blockchain, such as efficient pricing and lower transaction friction, to enhance the player experience. Rather than making a complex and time-consuming heavy game, I prefer a game that takes full advantage of the characteristics of blockchain technology.

In the case of Gas Hero, we designed it with a goal in mind to make the game more fun. Financial attributes don't necessarily mean making money, but rather making the gaming experience itself richer and more interesting through this element.

Web3 games are stuck in a bottleneck, how to achieve differentiated competition?

Jonny:

I agree with Mable, but I have a different idea. First of all, "Black Myth: Wukong" represents two aspects: one is seven years of unprofitable development, the team has completed a beautiful triple-A game with spiritual support, and insists on it for an IP and for a long-term goal; The second is the cultural guidance it has, not only the culture of Journey to the West itself, but the persistence and spirit shown by the team in the past seven years, which also has a great impact on the market.

As for Web3 games, the bottleneck now is: should we spend three to four years developing a blockbuster IP game, or should we first launch some small games in batches to complete the transition from 0 to 1 and attract users from outside the circle to Web3? I'm more inclined to launch mini-games in bulk, especially SLG or idle games. These kinds of mini-games can quickly engage users, help them enter Web3, and lay the groundwork for bigger projects in the future.

A classic example is my friend Paul, whose company, Mediatonic, developed Fall Guys. While you may not have heard of Mediatonic, Fall Guys was a huge global success. Before that, Paul and his team had made more than 300 mini-games, gaining experience through trial and error. Eventually, they launched Fall Guys, a hugely popular game.

In the Web3 space, my feeling is that many project parties are anxious and worried about failure. But I don't think it's scary to fail, it's about having a clear goal and moving forward step by step. You can test the market with small games first, and then gain experience and eventually develop a big game. It's going to be smoother.

In my opinion, the fun of the game is more important than the content or IP. For example, "PlayerUnknown's Battlegrounds" innovated the "chicken" mode, which is a successful gameplay innovation. Web3 games should quickly attract users through gameplay innovation of mini games, let them understand how Web3 is used, and then gradually guide them to become a stable user group, and finally launch large-scale IP games.

Michael：

I totally agree with Mable and Jonny. A good game doesn't have to be a great graphics or triple-A game, as long as it immerses the user, it's a good game. For example, small games like "Sheep a Sheep" are simple, but they are also very addictive. I think big games and small games are good games as long as they can be enjoyed by users.

Regarding financial attributes, you may think that Web3 players are all about making money, while Web2 players are about fun. But in reality, the two are not opposites. For example, in "Fantasy Journey to the West", players sell weapons and equipment by setting up stalls, chatting with other players, and haggling, which is also an interesting experience in itself. And this kind of sociality and gambling is exactly the direction in which Web3 games can be further developed.

One of the reasons we do SLG (strategy games) is that it's inherently Web3-oriented. In SLG, players not only need to have money, but also need to cooperate, such as paving the way, finding information, etc., all need to be coordinated. And this complex interaction is where Web3 can work well. Players can participate in the game economy by crafting equipment and selling items, which can benefit both Web2 and Web3 users.

As for why we chose the dinosaur genre (Age of Dino), the main reason is that dinosaurs are an element that both Eastern and Western users love. We combined the design of the armored dinosaur and did a lot of research, and found that players especially liked this image that was both mysterious and intimate. This makes our game even more engaging.

How to ensure that the project team will give more benefits and value back to the community and users?

Mable：

I strongly agree with the view that project parties should not rely on community financing to start a project, and I have a strong view of it. Early NFTs were supposed to be free, not sold. That's how we do it in StepN and Gas Hero, including StepN GO's shoe raffle, which only costs 5 GMT. The logic behind this is that if the project can be successful, there will naturally be transaction demand, and the project party will make a profit through transaction fees, rather than through the upfront sale of assets.

We are different from other project parties, which is really risky, but the advantage is that the start-up cost of the user is low, and the project party can also travel lightly. From the user's point of view, everyone starts at the same cost, which is fairer and simpler.

Returning to the question of how to give back to users, I'll give you the example of StepN. About a year and a half ago, we launched the Honor System, where each user has a wall of achievements to keep track of various milestones. For example, users who have walked 1,000 kilometers, 2,000 kilometers, or some particularly interesting achievements, such as good or bad luck when opening a box, will receive a badge. These badges can be viewed in the account and can be used to motivate loyal users.

In addition, we also give back to our users through StepN's airdrops. In the early days, the criteria for airdrops were simpler, but with the launch of the honor system, we can more effectively incentivize loyal users. USERS WILL BE REWARDED FOR REACHING CERTAIN MILESTONES BY CONTINUOUSLY USING THE APP, SUCH AS WALKING 2,000 KILOMETERS, 5,000 KILOMETERS, OR PARTICIPATING IN VARIOUS ACTIVITIES.

In addition, we also have an FSL Points Program that feeds back 2% of the revenue from market transactions to users. For example, in StepN's marketplace, users will have royalties for each transaction, and the royalties of co-branded products will be given to the brand, and 100% of the transaction fee will be returned to users. This simple and unpretentious way makes users more willing to trade on the platform. In other apps, we also give users around 20% of the fee back. These methods are designed to motivate loyal users and help the project better grow with users.

According to the "Notice on Further Preventing and Dealing with the Risk of Speculation in Virtual Currency Transactions" issued by the central bank and other departments, the content of this article is only for information sharing, and does not promote and endorse any business and investment behaviors. It does not provide transaction entrances, guidelines, and issuance channel guidance for the issuance, trading, and financing of any virtual currency and digital collections. Wu said that the content is not licensed, and it is forbidden to reprint or copy it, and violators will be held legally responsible.

This article is from Xinzhi self-media and does not represent the views and positions of Business Xinzhi.If there is any suspicion of infringement, please contact the administrator of the Business News Platform.Contact: system@shangyexinzhi.com