After Roblox, there are online earning, social networking and “premium” IP operations
The “first stock” Roblox has fallen to a record low, but the story of “Metaverse + games” is still very lively.
According to the incomplete statistics of Youfan, there will be at least 53 Metaverse-related investment and financing events in 2021, of which 16 are engaged in games, accounting for 30%.
What about 2022?
In the first five months, there have been at least 72 Metaverse-related investments and financings, of which 27 were related to games, accounting for 37.5%.
According to Bolly, an investor in Wuyuan Capital, the game and the Metaverse are accelerating the integration of antidote to each other. The Metaverse elevates the game, and the game helps the Metaverse land.
After two years of development, in addition to Roblox-like platform-based products that talk about creative ecology and profit from in-app purchases, advertising, etc., Metaverse games have created at least three main factions: investment-based, social-based and game IP derivatives.
By figuring out these new ways of playing in advance, ordinary people can be less fooled, and practitioners can lose less money.
Three new ways to play Metaverse games
What kind of game is a Metaverse game?
Regarding this basic question that has never had a standard answer, practitioners such as Bolly, old Y, a major game producer in the US stock market, and Ace, an employee of Survial Game, have given me a lot of answers. Among them, there are two points that can be agreed upon:
1. It must be a game, with gameplay and entertainment experience.
2. It must be a Metaverse, and there must be mutual mapping and integration of virtual and real worlds, at least three types of scenes, social relations (social), and value (currency, etc.).
In addition to these two, there are also some details that are difficult to reconcile.
For example, traditional gamers such as old Y will think that Metaverse games must be dominated by gamers, gain revenue from game channels, and rely on game players to realize their profits, and sell content experience.
Ace, a chain game developer, believes that products should be based on basic Metaverse technologies such as blockchain, and sell a broader “life entertainment experience” for everyone.
Old Y, Bolly and most gamers believe that the core of Metaverse games is to make the game thoroughly, and map online value to offline, so as to get new shares.
Ace and Weier Technology employees believe that the weak growth of the online game market is due to the lack of new content and users, so the core value of Metaverse games is to virtualize the offline world into the online world, form some new categories, and bring new content and users.
Under the condition that the basic conditions remain unchanged, we can start from different criteria, and we can divide Metaverse games into several types.
According to developers and operators , there are game products with Metaverse gameplay made by game manufacturers, and “gamified” NFT and blockchain products made by Metaverse companies.
According to the logic of realizing the “integration” of the Metaverse , it is virtual to reality, reality to virtual, and virtual IP integration online and offline.
According to the core experience and needs of players , there are platform-based, investment-based online earning, social-based, and new game IP experience.
We choose the player side, which is the easiest to understand, because platform types such as Roblox have been written many times in the past year, so we will mainly talk about the latter three.
2 P2E, the new online earning of Metaverse
P2E (Play To Earn) is probably the most popular Metaverse game type in the past year. Users’ needs are mainly to make money. The logic of “integration” is to link virtual and real (currency).
The mode of this kind of game is well understood. It is NFT + some kind of gameplay, and some elements in the game such as pets, equipment, decorations, etc. are made into NFT. On the one hand, players experience the gameplay through these elements, and achieve the goal to get happiness, and at the same time, they can also Improve the “strength” of these elements through game cultivation, make them more rare, and finally go to the trading platform to sell them for a good price.
Take Axie Infinity, which is emerging in 2021, as an example. The content of this product can be understood as NFT + Pokémon. The main concept is Play To Earn – earning while playing.
This product mainly gives players two experiences:
1. Game experience.
Simulated development + turn-based card battles, recharge – buy pets – breed – train – battle – get game currency.
Compared with the blockchain cats and dogs that were popular a few years ago, this type of NFT+ gameplay game product is more playable. For example, although Axie Infinity is only a rough card value collision, it already has a playable development and combat system.
Basically, pets (Axies) have various attributes such as blood volume, speed, and skills. Players need to breed multiple times to obtain pets with the best attribute distribution. More advanced, pets themselves have different racial characteristics, and there is a restraint relationship between different races. In addition to getting pets with more powerful attributes, players also need to use certain strategies in the battle, and use restraint effects to maximize damage.
2. Invest to earn money experience.
Pets and land are NFTs. Players can get token 1 – AXS by selling pets and land, and get token 2 – SLP through battle. These two tokens can be exchanged for ether, and finally to legal currency to achieve reality consumption in life.
Corresponding to the experience, there are two ways to realize this product:
1. In-app purchase.
Players need numerical competition, and products sell in-app purchase items that can make pets stronger quickly.
2. Service fee.
Players need to obtain NFT and make a profit, sell NFT products (pets and land), and take a 4.25% service fee when players trade.
In fact, if there is no Ethereum blockchain as the base, this model is almost the same as the old end games such as “Fantasy Westward Journey” + the official trading platform (Treasure Pavilion). The in-game economic cycle and user cycle are guaranteed through out-of-game transactions.
According to third-party data, in 2021, Axie Infinity will have a maximum daily activity of more than 2 million, a monthly NFT transaction value of more than 860 million US dollars, and annual revenue of more than 1 billion US dollars. However, this highlight performance is not long-lasting. By early 2022, third-party data showed that Axie Infinity’s daily activity and transaction data have declined significantly.
Ace believes that there are two main reasons for the failure of Axie Infinity:
1. The vast majority of users enter the game in order to make money in the short term, they only sell but not buy, so that the supply, especially the supply of low-end pets, exceeds the demand.
2. The user growth of the game since February 2022 has entered a bottleneck period. In addition, some users have cashed out and left, and a large number of NFTs have begun to enter a situation where there is no market for prices – price cuts – selling at a loss. After that, the price of its token has dropped from $90 at the end of 2021 to below $70, and it has entered a cycle of difficulty making money, not adding new users, and making money even harder.
Some game practitioners believe that Axie Infinity and most P2E Metaverse games do not have the mature gameplay experience as traditional games, and it is difficult to retain users through experiences other than investment and online earning. At the same time, they also do not have sufficient security and mature economic systems. In March of this year, there were cases of hacking that resulted in the loss of hundreds of millions of dollars in cryptocurrency.
When the gameplay cannot keep people, and the pure investment and online earning experience cannot be guaranteed in a long-term and stable manner, this kind of product cannot enter a virtuous circle.
In addition, to a certain extent, the rise of P2E games has also benefited from the epidemic and unemployment. The 2 million active users are likely to disappear suddenly on a certain day when the economy recovers.
By the way, when it comes to P2E Metaverse games, in addition to the crabs, there are also two other types of games.
The first is the StepN category, which is also a product with certain gameplay + NFT to make money. Its gameplay accounts for a relatively low proportion. Compared with games, it is more like a “gamified” Metaverse product.
Second, the domestic “pioneer” product – “Master Brewer”.
This “Shenyou”, which has brought a 4-fold increase in market value to Zhongqingbao, also uses the logic of virtual linking to reality. User needs are also to obtain value in the real world, but it is not money, but wine.
Judging from the internal beta version at the end of February, Brewmaster is actually a very pure business simulation game. Compared with products like Axi, which rely on in-app purchases + NFT transactions, it is currently monetized through in-app purchases. .
The main scene of the game is a winery, with workshops, wine warehouses, staff dormitories, farmland, breweries, packaging plants, laboratories and other sub-maps. The core experience of players is winemaking + wine extraction.
Among them, brewing has to go through real brewing processes such as building, upgrading workshops, hiring workers, farming, researching flavors, making puree, blending flavors, choosing packaging, etc. During this period, there are some small games of clicking and shaking the screen.
To make wine, players have two options:
1. Leopard head zero charge, slowly grind time to upgrade workshop, technology, labor, and finally produce a bottle of wine in a few months or even years.
2. Buy in-app purchase props, improve winemaking efficiency, and produce a bottle of wine every month. When the in-app purchase amount is lower than the value of the wine you get, you have made money. On the contrary, emmm, you can earn a winemaking experience?
In addition, regarding the results of “The Brewmaster”, because it does not have a version number yet, and it has only been tested on a small scale, we cannot say it well.
According to the internal test data released by Zhongqingbao in mid-May, this H5 game, which is expected to invest 5 million to 15 million yuan in research and development, obtained 1,317 monthly active users and the highest monthly paying users in the first round of 6,000 people’s tests. There are 15 people, and the highest monthly recharge flow is 2369 yuan.
According to the opinions of practitioners of many listed game companies, “Brewmaster” uses simulated business gameplay + offline wine extraction to cut many good concepts such as traditional cultural inheritance, virtual reality link, and Metaverse, but even as a H5 in the early stage of development From the point of view of the game, its artistic expression and gameplay are not like the level that a contemporary game should have. “After getting the first wave of volume with concept and marketing, it’s hard to retain people and generate long-term payments.”
“It’s more of a story for the capital market than a game.”
3Virtual social networking, or the beggar’s version of the oasis
After talking about the virtual to the reality, let’s talk about the virtual reality-a social Metaverse game.
Generally speaking, such games have two main characteristics:
1. The basic logic is to move the things and needs in reality to the digital world for display and realization, such as scenes, commodities, identity, social interaction, etc.
2. Blockchain technology as the base, allowing NFT transactions
Taking Decentraland, which has been very popular in the past year, as an example, this game wants to give players two main experiences:
1. Game experience.
There will be scenes and props made by the official and other players in the game, which players can visit, experience or buy by themselves.
At the same time, players can also create some buildings and props themselves.
At this time, theoretically, players can get a variety of game experiences such as exploration, simulation management, sandbox creation, and RPG.
2. Virtual social experience.
On the one hand, players can use avatars, identities, and other players to socialize and experience various scenarios.
On the other hand, in-game land, equipment, buildings and props created by players are all digital assets, which can be traded and leased to obtain tokens.
If you do these two, you will basically make the oasis in “Ready Player One”. But the reality is that, subject to cost and development capabilities, even mature players such as Decentraland can only make a virtual world that was at the level of web games ten years ago.
Limited by conditions such as game monetization, fluency and gameplay maturity, the functions that Decentraland can currently implement are mainly social (communication, watching, generating some cooperation, and trading relationships), which are far from the so-called immersive exploration and creation.
In the words of the old Y, Decentraland and other virtual space social products are currently regarded as “beggar’s oasis”.
However, although it is a low-end configuration, the imagination of this model is larger than that of P2E.
On the one hand, the game itself can make profits by selling assets such as land and equipment through in -apppurchases + transaction fees .
On the other hand, this kind of game does have the possibility of pulling the offline business model and market online and doing it again.
For example, those that can be sold directly include virtual real estate and virtual props such as clothing and images.
For example, it helps to do marketing in the real world. Just like Fortnite’s concerts, backwaters, MC conferences and graduation ceremonies, mature virtual scenes can replace some real scenes to complete the function of “promotion and notification”.
When the overall traffic of the game, or the traffic of a certain virtual community accumulates to a certain level, it can be used for marketing by real-world brands and charged for advertising fees . In March 2022, Decentraland will host a fashion week.
By the beginning of 2022, Decentraland’s official data said that the number of registered users of the game has exceeded 800,000. The scale of this virtual space has expanded by nearly 3,300% in 2021, and the company’s market value has risen to around $6.5 billion.
Regarding this model, Ace, who also makes Metaverse social games, believes that “moving the real world online must be the future direction”, but it must be realized step by step.
Considering that experiences related to creation, exploration, and adventure are already available on the market, mature sandbox games such as MC and mini-world can be realized, while “most Metaverse game developers and users have limited ability to understand and create game content”, Ace At present, it is believed that if you want to be an “oasis”, you still need to start with interactive upgrades and social upgrades. Simply put, it is VR + virtual social interaction.
There is also an investor from Dongfang Hongtai Capital who also holds this view. He believes that prematurely moving a variety of realistic scenarios and markets into the game requires too much R&D operation capability and cost coverage capability. Metaverse games should be approached from two more focused points:
The first is VR+Social, which first upgrades the virtual social experience with interactive technology, attracts mass users and forms a habit, and then gradually enriches social scenes and elements and turns them into games.
The second is high-degree-of-freedom and high-fidelity sandbox and survival games, which attract high-end gamers. From the core circle, gamers gradually change their understanding and needs of games, and then turn to a larger Metaverse with Metaverse colors. game.
Let me make a rough summary: the idea is good, the cost scale and capacity requirements are too scary, step by step, and wait.
4 Advanced “pan-entertainment” of game IP
In addition to these well-known models in the currency circle and chain circle, a better-understood Metaverse game type is more common in China – game name + Metaverse.
Since the launch of Roblox in March 2021, and the Metaverse has become a flying pig, a large number of xx Metaverse game projects have appeared in China. Tencent has the Peace Elite Metaverse, King Metaverse, and Ganwan Games even registered the “Slag Ash Metaverse”.
By 2022, China Mobile Games will do the Metaverse of “Legend of Sword and Fairy”, Shanghai Junmeng will do the Metaverse of “Gu Jian Qi Tan”, and NetEase will do the Metaverse of “Reverse Water Cold”. There are many more that are not mentioned.
In this category, although some projects also have plans such as blockchain and NFT (such as “The Legend of Sword and Fairy: The World”), according to Lao Y and the person in charge of the “Metaverse” project of a Hong Kong stock game company, currently The “Metaverse plan” of most domestic games is actually not a pure Metaverse, but “a more advanced IP operation based on the logic of the Metaverse”. Depending on the manufacturer, you can call it pan-entertainment or new cultural creation.
In this regard, the overall model adopted by domestic manufacturers is similar: the Metaverse means that the virtual and the real are mapped to each other. We take the game IP as the core and the game world as the scene to put the offline ones into the game, and put the virtual ones into the game. Do more fields and bring it offline at the same time.
First, put offline into the game, mainly various linkages, divided into three types:
1. The scenes are reproduced, “Jianwang III” and Zhangjiajie, “Backwater Cold” and Daocheng, “Mini World” and Longhu Mountain, etc.
2. Content and cultural implantation, “Fantasy Westward Journey” and shadow puppetry, “Glory of the King” and the Great Wall, Dunhuang, “Swordsman Love” and Pili Puppet Show, etc.
3. Implantation of life and entertainment habits, this is a very interesting gameplay in “The Brewmaster”, they have built a “listening” gameplay in the game, players can play with other players while waiting for boring time such as brewing. Enter the room together to listen to Guo Degang’s cross talk.
The second is to expand the digital content of games into more fields, that is, the derivation of digital content from IP content, such as multi-end and multi-version games, animation of “Jianwang III”, “Honor of Kings” comics, live-action movies and novels, etc. Wait.
Third, there are three ways to bring the game offline:
1. Bringing game elements into real life, there are currently two popular methods, one is offline theme activities, using Coser and theme scenes to build output. The second is the update, which proposes that the characters in the game are used as virtual idols and virtual spokespersons to output in real scenes. Such as advertising endorsements, giving speeches on TV shows, performing at parties, etc.
3. Realization of game scenes and gameplay. Mainly theme parks and offline experience stores.
Regarding this model, old Y, who has been in the business for many years, gave a solid evaluation, “It looks like a pioneer, but it is actually the basic operation of the long-term operation of the game.”
In his view, whether it is NFT + gameplay + virtual social networking, or the “new concept” of game developers today, the direction is actually to attract new users with new content. In the final analysis, you have to have content, and if the quality of the content is not high enough, you have to have operations.
If these two abilities can’t be improved and you have to pursue Metaverse games, “the future will not come”, and then there will only be some “failures due to technology and capital constraints” in the vast and fantastic market. Just a boring story.
Posted by:CoinYuppie，Reprinted with attribution to:https://coinyuppie.com/with-a-daily-life-of-2-million-and-an-annual-income-of-7-billion-how-do-todays-metaverse-games-play/ Coinyuppie is an open information publishing platform, all information provided is not related to the views and positions of coinyuppie, and does not constitute any investment and financial advice. Users are expected to carefully screen and prevent risks.