How will Web3 power changes in mobile game publishing?

The mobile gaming landscape is predominantly shaped by free-to-play (F2P) experiences, accessible through platforms like the App Store and Google Play. Meanwhile, Web3 mobile game publishers like BlockGames are pushing the boundaries of what’s possible. This article looks at what’s going on in mobile game publishing today and examines the future role of decentralization in driving mobile game economies to new heights.

From premium to freemium in a flash

Mapping the downward trajectory of Sega’s Super Monkey Ball install price from 2008 to 2012 is one of the quickest ways to see how, as mobile games flooded the App Store, a race to the bottom took place. From a premium price tag of $9.99, the decline to a meager $0.99 took just four years.

F2P had stolen the premium crown. With zero barriers to entry, for most casual gamers it was a no-brainer to make the switch. Suddenly, premium games that had demanded an upfront payment now had to transition to a different monetization model. As users stampeded to free gameplay, it wasn’t long before studios and publishers realized it was a case of either pivot or perish.

F2P is here to stay

For Web2 mobile games and those powered by Web3, sacrificing the upfront payment for a higher volume of downloads has become the de facto business model. Today, 90 percent of games on the App Store and Google Play follow the F2P path as the fastest way to drive user acquisition. The adage ‘scale first, monetize later’ applies now more than ever.

Whether it’s hardcore, mid-core, casual, or hybrid-casual mobile games, removing payment friction makes initial game installs, and subsequent in-app purchases, far quicker. This currently makes it the chosen route to market. But there’s an exciting new kink in the road ahead.

Games powered by Web3 provide additional value

As blockchain technology continues to evolve, there’s an emerging contingent of players who want more than just great games. They want real rewards to show for their efforts — digital collectibles they can keep, use, exchange or sell.

It’s these things, along with the real possibility of generating revenue, that will tempt more traditional developers to experiment with Web3 games, and encourage more Web2 developers to experiment with Web3 integrations.

Still, it’s important not to get too carried away; while mobile gaming has arguably reached maturity — with around 3 billion people regularly engaged in mobile gaming activities — enjoyable and sustainable games built on Web3 are few and far between. According to DappRadar’s recent Blockchain game report, during a recent three-month period unique and active wallets engaged in Web3 games sat at around 791,474. It’s clear from this figure that, for developers and publishers alike, the industry is a long way from maturity and maintains the potential for explosive growth.

No fun in the game equals no long-term gains

The reason this hasn’t happened sooner is that most Web3 games to date have put financial dynamics and the accrual of often questionable digital assets before fun. While this worked well when markets were bullish — attracting speculators and value extractors happy to grind it out in the hope of making a fast buck — when markets reversed, players and other stakeholders made for the exit taking their liquidity with them.Something had to change.Benas Baltramiejūnas, co-founder & CEO of Web3 mobile games company, BlockGames, said,

“The problem with many Web3 games is they haven’t been created with fun at their core. The economic structure has come first. When markets changed, GameFi and everything associated with it left those who believed in it feeling let down.”

“Meanwhile, the problem with the current Web2 model is that, even with truly engaging and immersive games, the focus is on aggressive monetization of the existing player base. It’s a one-way type of deal where the owners of the IP and the app stores reap the real rewards and the players receive nothing of real-world value. That said, I now think we’re at a turning point.”

The start of in-game ownership for players

He said, “With traditional mobile games, the centralized processing of data means that all assets exist on the developer’s servers. There’s no real player ownership of digital collectibles and no simple mechanism in place to sell or trade those assets. But that’s about to change.”“Other frameworks are emerging in which you have enjoyable gameplay and balanced in-game economies where users are stakeholders in the system. If the player network is structured correctly the developers, players, and other user groups can be rewarded in ways that benefit everybody. Some participants might not even play games but remain crucial to the network’s functions and success, and should be rewarded for their contribution.

Players as stakeholders

With decentralized player networks like BlockGames emerging, where mobile games powered by Web3 are comparable to the best-in-market, the key difference is that players become stakeholders with proportional ownership and voting rights measured in $BLOCK. These tokens are fairly and automatically distributed to all player network participants via their wallets.Benas added, “If we compare current Web2 and Web3 games on a like-for-like basis, in time it will become evident to a growing number of people that it is better to be a player with ownership supported by the blockchain. The ownership-driven network effect will mean that greater user acquisition and faster scaling becomes possible, something that is attractive to investors, studios, and player communities.”

Ownership to drive new mobile game publishing paradigms

According to a paper by The Mutuality in Business Research Team:

Psychological ownership is the feeling of possession over a target — an object, concept, organization, or other person — that may or may not be supported by formal ownership. Individuals become invested in the target of ownership as an expression of who they are and that to which they belong.

Transposed to the world of mobile gaming, this idea of becoming invested in the target of ownership, bolstered by having secure assets of genuine value, is what’s most likely to drive thetransition from Web2 to Web3 mobile gaming.“It will take time, and most likely begin with lightweight integrations that bring the two technologies closer together, like a slow fusion,” said Benas. “So, for now, the real challenge as a mobile games publisher is to try and avoid the Web2 vs Web3 debate altogether.“In reality, good games are good games, and bad ones are bad. Web2 games can be powered by Web3 but it requires lateral thinking. Web3 is the infrastructure beneath the surface that allows for digital asset ownership, among other things, to become a widespread reality. Web2 game developers can take advantage of that.“This is the goal, and we’ll be revealing much more about how BlockGames will provide this new type of service layer, powered by Web3, for developers, self-publishers, and their players very soon.”

BlockGames is the world’s first cross-chain, cross-game Player Network, accelerating user acquisition for games through instant referral and engagement rewards mechanisms for players. The first game on the Player Network is Shatterpoint, an action-packed RPG in the style of Diablo.