Sandbox co-founder foresees AAA game studios embracing web3

Speaking in an interview with Crypto.news, The Sandbox co-founder and COO Sebastien Borget discussed the obstacles web3 games face towards mainstream adoption.

Web3 is transforming the gaming industry. Web3 games, which can be seen as a big change from traditional gaming platforms, allow players to interact more deeply with games in new and decentralized ways.

These games offer players more control and ownership over in-game assets such as items, characters, and currencies. Players can trade, sell and even create their own assets.

Major AAA game publishers are already testing these new waters in an attempt to improve players’ gaming experiences. For example, gaming giant Ubisoft, known for top-grossing video games such as Assassin’s Creed and the Far Cry series, pioneered the integration of NFTs into its popular game Ghost Recon: Breakpoint.

Although web3 games aim to empower players, the industry has received a lackluster response from the broader gaming community, which still prefers traditional web2 games. According to the Blockchain Game Alliance report, 51% of users believe player engagement is the biggest challenge, while 37.2% think poor gameplay is a problem.

Gaming giants like Ubisoft and Sega have recently slowed their efforts to release new web3 games as they continue to search for a way to crack the code of mass adoption. This is due to the fact that more than 75% of web3 games launched in the last 5 years are complete failures, according to CoinGecko’s 2023 year-end report.

Despite the problems, the industry is expected to grow significantly, with some estimates predicting it will be a $30 billion industry by 2030. Borget, who is also the president of the Blockchain Game Alliance, shared his views on the subject.

You’ve said before that AAA companies will wait for smaller studios to innovate before entering the web3 space. How do you see this adoption pattern playing out, especially given the current infrastructure developments in web3 games?

It is quite natural that in any industry the biggest players are the least inclined to adopt the latest innovations. Their current business model is heavily dependent on the web2 model and they have already made dozens if not hundreds of dollars from it. Therefore, they lack the agility to start looking at new revenue opportunities, or even if their revenue is ten million, they may think it’s too small. Herein lies the new opportunity for smaller, more flexible studios. They become more culturally prepared and are really challenged to explore new paths and try new things at a much faster pace. This is what we’ve seen in the past: test, iterate, fail, sometimes fail fast, but only small teams have this approach to fast recovery.

What about the big players?

Large companies face multiple process burdens that hinder their agility. However, in the Blockchain Game Alliance we see major companies like Nexon, Come2uS, Ubisoft, Atari and G2A getting into web3 and Blockchain Gaming. But the way they do this essentially involves establishing separate teams that are not limited by the limitations of large companies.

In your experience, what are the biggest challenges in the development and adoption of web3 games today?

The first of these is that entertainment is not given enough importance and priority is given to playing games instead of just playing games. This is a recognized problem in the industry, and efforts are ongoing to raise the quality of the player experience in Web3 games to match that of web2 games. Blockchain, NFT and cryptocurrency technologies are also here to support the game and make it more attractive for users. The second challenge relates to user experience (UX).

Why?

User onboarding still involves multiple steps, such as wallet setup, which can be time-consuming. Although opening a bank account or a new mobile operator account also takes time, the process in Web3 is perceived as complex. Unlike Web2, where App Store and Google Play provide accessibility, Web3 lacks such amenities. However, just as the first iPhones lacked the features found on modern iPhones, the user experience on Web3 has improved over the past four years and there is optimism that it will continue to improve in a positive direction.

With the integration of blockchain technologies with major game engines such as Unity and Unreal, what technological hurdles still need to be overcome for web3 games to compete with existing web2 games?

I think it’s great that we have some sort of direct integration in some of the two game engines most used by the gaming industry in the world that makes it easier for users to interact with wallets and interact with web3 in general. I think there are still some hurdles to overcome, like distribution and access to players. But on the development side, it’s becoming increasingly easier thanks to solutions like Unity, Unreal, and also Stardust, which help remove the complexities that blockchain presents for developers.

What approach should game developers take?

Game creators should focus on making great and fun games. Implementing any new technology such as blockchain requires blockchain developers, architects, security audits, skills, and competencies that are not typically found in a video game team. Therefore, having middleware solutions and solutions that reduce the need for certain resources is a great advantage.

What strategies would you recommend to attract traditional players to the web3 gaming ecosystem without alienating them from the complexities of blockchain technology?

Again, it’s all about traditional players; The first step is to attract them with fun games and offer new experiences they can’t find anywhere else. Next, I believe too much emphasis is placed on resident education. This is where guilds and other communities can contribute. I also think it could be beneficial for larger platforms to join the fray and allow users to discover great games without the complexities of blockchain, through simple wallets that can be connected, or through stores that enable or authorize Web 3 games. We have seen that Google Play and Epic Store are also moving in this direction. Therefore, I am confident that through our members’ determination, hard work, and focus on the right priorities, blockchain will continue to advance in terms of adoption and recognition.

Can you discuss the role of NFTs and the token economy in improving gameplay and player engagement in Web3 games?

The important part here is that if a person participates in creating player levels, creating their own avatars, or creating more content in the game as a dedicated creator, they are ultimately interested in the success of the entire game and creating a network. by connecting with other players and communities within. So whether you are the creator or own one of the game’s assets, you become an active stakeholder rather than a passive consumer. Players think that they also benefit themselves with their contributions such as bringing their friends, adding content, and participating in the game’s economy. This not only brings financial benefits, but also increases entertainment, attracts more people and enables participation in the overall value creation, which certainly increases loyalty.

What are some innovative ways you’ve seen these technologies implemented in games?

What we’re seeing that’s really interesting is that we’re in the early days of innovation here and there’s a lot of experimentation going on in Web3. People are using decentralized finance mechanics more. Instead of buying content, you can invest in content, experiences, etc. You can stake your coin to access it. Owning an NFT can give you access to a whitelist or more content and experiences; Here you can move up the leaderboards or win more rewards. Even the simple mechanism of rewarding people with free assets or what we call airdrop of coins is now becoming the new way. So instead of selling content to attract users, we deliver content to them, give them a glimpse into the experience, and then introduce them to the fun of participating in that experience. It’s still early days, so we’re looking forward to seeing much more innovation in the space.

Considering big names like SquareEnix and Sega are already experimenting in this sector, do you expect any major AAA game publishers to make any moves in the coming years?

Yes, we are, and Square Enix, Ubisoft and Atari have entered the industry. These are just a few of the big names that have announced or released games using blockchain technology and NFTs. We can expect to see more of the existing AAA game publishers who are facing challenges due to the current free-to-play and premium business model move into this space. We also witness new actors emerging and turning into large companies. As pioneers and early adopters of the field, they have a higher chance of seizing opportunities in the industry. Perhaps we will start to see consolidation in the space similar to what we have seen before in other sectors.

Will we see a future where the intersection of AAA gaming and web3 creates an economy that empowers both players and developers?

Yes, I definitely believe there will be an intersection where AAA gaming and Web3 creators will create an economy. In fact, we already see this a lot. Think Animal Crossing from Nintendo. People started collecting resources and wanted to sell them to each other until Nintendo blocked it. So it is quite natural for players who want to exchange resources with each other, and blockchain is a technology that facilitates this, giving back to users the power and ownership of the data they own and the money they spend to obtain such content. This shift is from an asset-leasing economy to asset-owning.

So how is this possible?

I believe it will grow on a larger scale with bigger games. As they attract larger and larger communities, it will become, and perhaps is already becoming, a standard for Generation Z that any digital asset they own should be theirs, can be bought and sold, and then bring value. This model not only brings value to players, but also offers a new model for developers to adopt.