Gamesbeat Summit Next 2022 – 3 Days of virtual and live events with over 34 panels. This year certain topics kept appearing in casual conversations and on the panels. Within the first minute of entering the venue, we heard the phrase “NFTs in games”. That made us decide to start keeping track of the most common words, phrases, and themes to share our top takeaways.
Web3
Web3 or blockchain was mentioned on almost every single panel. The overall takeaway was that we are still in the very early days, but there is a lot of potential for how blockchain can power new gaming experiences and business models. We saw game developers and publishers alike looking to adopt blockchain technology in games and leverage its benefits. Many companies are looking at use cases of NFTs in games for everything from items to collectibles to marketing tactics to community building.
As is natural with any new technology there is a level of skepticism at the beginning before mass adoption. The industry is waiting for the next wave of blockchain games with the general sentiment being the potential for blockchain in games is still largely untapped.
Gaming is a convergence of so many different types of technology. We are starting to see how blockchain can be integrated into gaming at different levels, from the game design itself to the business models and platforms that power it.
**We decided to list Web3 first because it was brought up in every other category listed from here on.
The Metaverse
The word ‘metaverse’ was in a huge portion of the panel titles. Of the 34 public panels, 7 had the word metaverse in the title, with much more mentioning metaverse in the panels themselves. The panel “The Journey To The Real-Time Metaverse” opened by asking the panelists what their definition of the metaverse was. Everyone had a different answer and agreed that the metaverse is an open-ended concept that is still being fleshed out by different people in different ways.
The overall sentiment around the metaverse was excitement and inevitability. As more and more brands create their version of a metaverse, we will continue to see the lines between our physical world and the digital world blur as we spend more and more time in virtual spaces.
Dean Takahashi, lead writer for Gamesbeat, did a fireside chat with Author and Co-Founder of Lamina1, Neal Stephenson who coined the term ‘metaverse ‘in 1992 in his book Snow Crash. Stephenson believes that the metaverse is only possible because of the gaming industry. The games industry has been developing the technology needed for a metaverse. Anyone building out a metaverse will need the skill set of a game maker to do so and where the technology currently lies, any metaverse built will be built on top of a game engine.
In Stephenson’s opinion, gaming is where the metaverse takes off.
Interoperability
A big theme at Gamesbeat was interoperability, or the ability for different systems to work together. Could you bring a sword from one game into another? How would you do that?
That’s right, blockchain. Blockchain can provide the infrastructure for a more open and interoperable metaverse. This would allow for different games, platforms, and virtual worlds to interact with each other more seamlessly.
On the panel, “How Blockchain games will go mainstream” Paul Bettner, CEO of The Wildcard Alliance, urged people to consider what makes sense for interoperability. Taking a sword from one game to another makes sense, but taking a sword to something like Candy Crush? That doesn’t make sense. Bettner cautioned people to think about what is needed for interoperability and not try to force it where it doesn’t make sense.
User Generated Content & The Role of Community in Games
User Generated Content (UGC) is a big part of the gaming industry. Games like Minecraft have been extremely successful because of their UGC components. UGC can add a lot of value to a game by allowing players to market their own experiences in a game through content. This can create a more personal connection to a game and can also lead to more viral marketing of a game.
Panelist and Creator, Danielle Udogaranya urged that content is what makes people want their own unique experiences in games. UGC works because it allows individuals to fuse their identity in the game and share that experience with their community.
Games have always been a social activity, and that is only amplified by the rise of online multiplayer games and platforms to share UGC. The community can be a big differentiator for games. Having a strong and engaged community can make a game successful. Communities can also form around content creators.
Tools and game improvements can come from the community as well. Feedback from the community can help improve games. After all, it is the community that will market a game through UGC, Twitter, Twitch, Discord, Reddit, and word of mouth.
We are living in a creator era, and as Web3 technologies mature and grow in popularity, how will that impact UGC? What new opportunities will arise for content creators? How will Web3 impact ownership of content?
IP and Regulatory Frameworks
Almost every conversation surrounding the topics above led to a discussion about IP, regulation, and security. These are all big issues that need to be addressed for gaming to move to the Web3 space.
It brought to question the nature of ownership. If a player can buy an in-game item as an NFT, does that mean they own it outright? Does the game developer still own the IP for that item? What about UGC with licensed characters? How will we deal with these questions?
Another concern is regulation. How will games be regulated in this new space? How will different jurisdictions handle games that may cross borders? For example, a game developed in the US may have players from all over the world. How will that impact regulation, especially on things like NFTs that may vary from country to country?
The games industry is at an inflection point. The move of games to Web3 presents many new opportunities and challenges. If we take a look at the half-century of history of best practices from the gaming industry, we might be able to find some clues on how to deal with these new challenges. Michaela Mantegna, Video Games XR & AI Policy Maker, and Kavya Pearlman, XSRI Founder & Information Security Researcher, spoke of the importance of creating a set of standards as an industry on the panel “Into the metaverse: lessons from the gaming industry”.
Pearlman also discussed the importance of self-regulation in the gaming industry. The games industry has been willing to self-regulate. In 1994, the games industry created the Entertainment Software Rating Board (ESRB) to rate video games. This was done in response to concerns about violence in video games. The ESRB is a voluntary system that is not enforced by law. However, most retailers will not sell games that are not rated by the ESRB.
The ESRB is just one example of self-regulation in the gaming industry. The games industry has a long history of self-regulation. As the gaming industry moves into the Web3 space, it will need to continue to self-regulate. With the increase in NFTs and new ways to monetize games, the industry will need to continue to be proactive.
The game industry has always been at the forefront of new technologies and trends. As we move into the next era of gaming with Web3 and the Metaverse, there is a lot to think about and consider but the willingness to experiment so ingrained in the game industry is what is needed. For all of these topics and questions that have been raised, there are no easy answers. But the game industry has always been the place where people are willing to question limits and try new things. Web3 will be no different.
About Stardust
Stardust is a SaaS, blockchain agnostic, platform that offers a seamless “low code” integration of NFTs for game studios. To learn more, you can schedule time with our sales team here.
