Animoca Brands co-founder and Chairman Yat Siu believes the widespread negative sentiment within the crypto gaming sector is partly a self-perpetuating cycle. He argues blockchain gaming’s overall value proposition will increase only if “the sentiment in gaming broadly, not including Web3, [increases] as well.” While current excitement resembles the “bitcoin meta,” finding a macro gaming trigger could positively impact the market.
Unlike traditional gaming, crypto gaming attracts a divergent user base blending participants focused purely on financial speculation with active players and investors. This diverse landscape creates unique dynamics, such as separating token buyers from actual game users. Focused development targeting the right demographic is seen as crucial for better returns by industry insiders, despite financial speculation likely persisting due to its appeal to many.
Changing the Narrative
Siu characterized the current crypto gaming climate as bleak. Contrary to earlier enthusiasm, sentiment is “down” as game studios shut down. Significant closures have recently occurred (Nyan Heroes, Ember Sword, Blast Royale), largely driven by a lack of accessible funding.
The challenge now lies in shifting focus away from purely financial speculation and re-engaging interest in fundamentally changing how games are built and played using blockchain technology.
GTA’s Potential
The Animoca Brands executive conceded rumors surrounding Grand Theft Auto 6 incorporating crypto elements could indicate hidden enthusiasm, but doubted Rockstar Games (Take-Two Interactive) will face similar resistance to roleplay integration than prompted previous bans on certain modifications. GTA 5 typically prohibits such modifications.
Regardless of crypto integration, elements making GTA 6 arguably the most anticipated title in its storied franchise ever – a status underscored by its billion-plus view debut trailer – mean its release could represent a pivotal moment for mainstream gaming. Analysts predict a substantial $3.2 billion revenue figure in its first year. If successful, this could potentially lift interest in gaming broadly, potentially benefiting other sectors, including Web3 games.
Note: This commentary summarizes aspects of an interview with Yat Siu. Previous editions of The Drop newsletter explored related topics.
