2022 was a big year for the Play-to-Earn (P2E) gaming scene. Following the influx of capital and users, the price of blockchain gaming tokens plummeted, leading to a decline in players. Markets are still in turmoil. And with the FTX disaster reaching every corner of the industry, the outlook for Play to Earn looks bleak on the surface. But when you take a peek inside, the numbers tell a different story. With strong funding this year, we are ready for full-scale “construction” in 2023.
A strong and consistent stream of funding for the Web3 game studio has been quietly pouring money into the market for months. In August, UnCaged studios raised his $24 million, and in that month alone he contributed nearly $750 million to Web3 game studios. This momentum led to Revolving Games raising his $25 million in September, and Odyssey Interactive, Stardust and SkyWeaver raising $19 million, $30 million and $40 million respectively in October. Thirdverse announced in November that he raised $15 million for his Web3 and virtual reality (VR) games.
These numbers run counter to plummeting asset prices and player enthusiasm for the Web3 gaming space. But even as gamers and tokens languish, venture capitalists are betting big on the future of blockchain gaming. Which studio will win next year? Why?
Instead of betting on speculation, VCs are betting on experience
One of the notable elements of the fundraising that has taken place in recent months is that the majority of studios that have received funding have not had seed or pre-seed rounds. Rather, they hold the Series A.
Of course, there are exceptions to this rule. Some studios have successfully completed seed or pre-seed rounds. Still, their founding team has some serious gaming experience. For example, Ruckus Games, which recently raised $5.5 million in seed funding, is a game studio launched by a former Gearbox and Riot Games developer. This shows that VCs are eyeing studios with gaming experience. This sets it apart from his early Web3 games.
During that early period, many Web3 game projects received strong funding without a clear roadmap for product launch or the creation of teams with proven experience to make it happen. . In fact, his YOLO days of late 2021 to his early 2022 are long gone. Currently funded studios have had some success building Web3 games. VCs are now also looking further ahead, five to ten years.
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This time frame may seem like many lifetimes in the crypto world, but this period is normal for studios in the traditional gaming space. The shift to long-term thinking also shows that studios are beginning to understand that individual games have a shelf life, and that investing in the studios that build games is a more effective approach. .
How will the crypto game change?
When you look at these pay rises in conjunction with long-term trends in Web3 games, you can see that some patterns are beginning to shape the future of the industry.
So what impact will every raise have in a few years?
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There is no doubt that we are focusing on mobile games. In September, DappRadar reported that in one week, more than 1.7 million users migrated from his Web2 to his Web3 game by his hyper-casual mobile blockchain game.
With these changes underway, we expect Web3 games to enter the “mainstream” and within the next five years, the global index of the top 100 game studios will include studios with strong blockchain elements. increase.
Click here for the long game
The big fundraising that has happened in the Web3 gaming space in recent months probably isn’t the last. The hype cycle for Web3 games is officially over and the space is in ‘build’ mode. And this time, investors are interested (pun intended) in studios that have been playing the long game.
This shift in focus, coupled with major shifts in the larger blockchain technology industry, will create new dynamics and opportunities for builders in the P2E market in 2023. Rising expectations from both players and funders separate wheat and chaff. Priorities for 2023 and beyond focus on quality over quantity. In the end, whoever can create the best game wins. So let’s start the game.
Corey Wilton Co-founder and CEO of Mirai Labs, the international game studio behind Pegaxy. A renowned speaker and earning thought leader, he founded the first company in the cryptocurrency industry in 2018. This is a customer support service designed to assist cryptocurrency companies with customer service.
This article is for general information purposes and is not intended, and should not be construed as legal or investment advice. The views, thoughts and opinions expressed herein are those of the author and do not necessarily reflect or represent the views or opinions of Cointelegraph.
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