📈⚖️📉Market & Economic Structure of Games
Web3 Gaming needs to balance real consumer spend against short-term speculation revenue.
Many people are seeking the holy grail when creating interesting and meaningful markets for games.
Don't need to look too far for inspiration. 🧵👇
Web3 Gaming needs to balance real consumer spend against short-term speculation revenue.
Many people are seeking the holy grail when creating interesting and meaningful markets for games.
Don't need to look too far for inspiration. 🧵👇
In 🎮Games, like any entertainment product, Content is the scarcest resource.
While the ⚖️Market itself can be content, All markets lead to content, and consumption of content.
TLDR Make a fun game, and keep making fun stuff.
Speculative value collapses, consumer spend does not.
While the ⚖️Market itself can be content, All markets lead to content, and consumption of content.
TLDR Make a fun game, and keep making fun stuff.
Speculative value collapses, consumer spend does not.
More Questions to Answer:
How does a dev capture this consumer spend?
How does a dev who bootstrapped through web3 share this spend with their most ardent supporters, token and nft holders?
A pure free market turns this into user market PVP. is this the UX most users will want?
How does a dev capture this consumer spend?
How does a dev who bootstrapped through web3 share this spend with their most ardent supporters, token and nft holders?
A pure free market turns this into user market PVP. is this the UX most users will want?
Many games possess different market structures for different types of items.
There is something to learn there, as there is absolutely no requirement to adopt a single type of Market for all items.
Read further 👇
There is something to learn there, as there is absolutely no requirement to adopt a single type of Market for all items.
Read further 👇
⚖️Monopoly:
Only Devs can sell items. Players can't trade.
Examples:
- 🍬Candy Crush
- ⚔️Clash Royale
- Genshin Impact, Azur Lane
Players aren't able to sell anything to each other. New players have to pay full price, Veterans can't sell their junk.
Only Devs can sell items. Players can't trade.
Examples:
- 🍬Candy Crush
- ⚔️Clash Royale
- Genshin Impact, Azur Lane
Players aren't able to sell anything to each other. New players have to pay full price, Veterans can't sell their junk.
⚖️Monopoly:
Devs can sell stuff according to a player's journey through their content without other players interfering.
It also eliminates botting problems messing with monetisation loops.
Veterans will not be able to undercut Dev prices with their collected resources.
Devs can sell stuff according to a player's journey through their content without other players interfering.
It also eliminates botting problems messing with monetisation loops.
Veterans will not be able to undercut Dev prices with their collected resources.
⚖️Monopoly:
Interesting Example: 🏯 Rise of Kingdoms
Revenge Spending
Players are able to interfere with each other's growth loops by stealing RSS and destroying armies.
You can buy shields, teleports, speed-ups and resources from the developer to take revenge or get stronger.
Interesting Example: 🏯 Rise of Kingdoms
Revenge Spending
Players are able to interfere with each other's growth loops by stealing RSS and destroying armies.
You can buy shields, teleports, speed-ups and resources from the developer to take revenge or get stronger.
⚖️Monopsony
In games, this usually means NPCs will buy loot for a minimum price.
Runescape: Grand Exchange, NPCs will buy and "trash" your loot to give minimum sums of gold.
You can also observe evolved versions of these with pity currency shops, especially prevalent in Gacha.
In games, this usually means NPCs will buy loot for a minimum price.
Runescape: Grand Exchange, NPCs will buy and "trash" your loot to give minimum sums of gold.
You can also observe evolved versions of these with pity currency shops, especially prevalent in Gacha.
⚖️Monopsony
This creates a minimum faucet for currency that supports gameplay verticals that doesn't produce items of much value/oversupply.
This is important to support verticals where players will spend a lot of time in.
This creates a minimum faucet for currency that supports gameplay verticals that doesn't produce items of much value/oversupply.
This is important to support verticals where players will spend a lot of time in.
⚖️Free Markets⚖️
In a free market, Value is relative.
📈Value = Fun+(Production Cost + Utility + Logistics) / Demand
🎈Fun: Entertainment Value
💰Cost: Time, Effort, Difficulty, Accessibility
🛠️Utility: Rate of Usefulness
📦Logistics: Cost of getting to market
In a free market, Value is relative.
📈Value = Fun+(Production Cost + Utility + Logistics) / Demand
🎈Fun: Entertainment Value
💰Cost: Time, Effort, Difficulty, Accessibility
🛠️Utility: Rate of Usefulness
📦Logistics: Cost of getting to market
⚖️Free Markets⚖️
Create differentiation in all the above traits, including how fun is it to use it (in different scenarios)
create opportunities to shift things around, through Events/Rogue-Likes/pvp, to create an ever changing tide in the market through Emergent Content.
Create differentiation in all the above traits, including how fun is it to use it (in different scenarios)
create opportunities to shift things around, through Events/Rogue-Likes/pvp, to create an ever changing tide in the market through Emergent Content.
⚖️Free Markets⚖️
Very dangerous if left unchecked or unbalanced, and require a lot of supervision so UX is not impacted.
Example: Trading super rare gacha heroes: you kill monetisation and kill new player's gacha experience
noticed some games w/fixed supply gacha: u kill TAM
Very dangerous if left unchecked or unbalanced, and require a lot of supervision so UX is not impacted.
Example: Trading super rare gacha heroes: you kill monetisation and kill new player's gacha experience
noticed some games w/fixed supply gacha: u kill TAM
⚖️Free Markets⚖️
Only adopt a total free market if it's a core feature of gameplay. In 🚀EVE, a major part of emergent content rely on it's hypercapitalist, lawless economy.
Even so, devs finesse the experience by adjusting levers and control revenue thru selling subs/cosmetics
Only adopt a total free market if it's a core feature of gameplay. In 🚀EVE, a major part of emergent content rely on it's hypercapitalist, lawless economy.
Even so, devs finesse the experience by adjusting levers and control revenue thru selling subs/cosmetics
🚀Eve Example 1:
💰Cost: Larger ships generally cost more 🗜️Material...
🛠️Utility: but let you run harder missions which makes more ISK
📦Logistics: Moving Large ships is hard. A ship where i want it is worth more than a ship 100 jumps away.
Which is the key metric?
💰Cost: Larger ships generally cost more 🗜️Material...
🛠️Utility: but let you run harder missions which makes more ISK
📦Logistics: Moving Large ships is hard. A ship where i want it is worth more than a ship 100 jumps away.
Which is the key metric?
🚀Eve Example 2:
peace vs war
💰Cost: PVE ships generally cost more to fit because people bling for efficiency, PVP ships are disposable and cookie cutter
🛠️Utility:
in peace, PVE ships⬆️, PVP ⬇️.
In War, PVE ships⬇️, PVP ⬆️
📦Logistics: increased danger in shipping during war
peace vs war
💰Cost: PVE ships generally cost more to fit because people bling for efficiency, PVP ships are disposable and cookie cutter
🛠️Utility:
in peace, PVE ships⬆️, PVP ⬇️.
In War, PVE ships⬇️, PVP ⬆️
📦Logistics: increased danger in shipping during war
🎮Generic Game Example 1:
Fire Monster seasonal event
All fire monsters give 50% EXP and Loot, but are 100% stronger.
Predicted Market Reaction:
🔥Fire Resistance potions ⬆️
🔥Fire Resistance Armor ⬆️
🌊Water damage weapons ⬆️
Event rotates to Water Monster. What happens?
Fire Monster seasonal event
All fire monsters give 50% EXP and Loot, but are 100% stronger.
Predicted Market Reaction:
🔥Fire Resistance potions ⬆️
🔥Fire Resistance Armor ⬆️
🌊Water damage weapons ⬆️
Event rotates to Water Monster. What happens?
🎮Generic Game Example 2:
Rotational Crafting Event: 5 super limited cool Fire Element items is drawn from a Pool and able to be crafted
Predicted Market Reaction:
🔥Fire materials ⬆️
🛠️Crafting Success rate potions ⬆️
Secondary Effects:
🔥Fire Element gathering tools/weapons⬆️
Rotational Crafting Event: 5 super limited cool Fire Element items is drawn from a Pool and able to be crafted
Predicted Market Reaction:
🔥Fire materials ⬆️
🛠️Crafting Success rate potions ⬆️
Secondary Effects:
🔥Fire Element gathering tools/weapons⬆️
Below are some examples combining different aspects of market structure theory applicable to sustainable web3 gaming.
They are not radical: that is not their purpose.
My goal is to bring stability to build games we all know and love while exploring possibilities web3 offers.
They are not radical: that is not their purpose.
My goal is to bring stability to build games we all know and love while exploring possibilities web3 offers.
By opening markets up to financialization and speculation, remember
Doing it consent ALL your users to market PVP in that vertical.
Ask these questions:
What type of users does the game have?
F2P, Whales, Speculators?
What makes them happy?
What verticals do we need to protect?
Doing it consent ALL your users to market PVP in that vertical.
Ask these questions:
What type of users does the game have?
F2P, Whales, Speculators?
What makes them happy?
What verticals do we need to protect?
#1: Subs
Self Explainatory. A fair in between can mean QOL upgrades, time-saving subs
E.G: Albion Online's Subs. Users get increased EXP, Loot & Crafting bonuses. Subbers get leg up in the bustling item free market through bonus drops, tax rebates and extra daily trades
Self Explainatory. A fair in between can mean QOL upgrades, time-saving subs
E.G: Albion Online's Subs. Users get increased EXP, Loot & Crafting bonuses. Subbers get leg up in the bustling item free market through bonus drops, tax rebates and extra daily trades
#2: Time-Gated Monopoly
Fortnite, Apex BattlePasses
Those premium items don't come back after a season.
Open Trade at end of a Season = continued revenue from old items, while maintaining original monopoly price. Items have aftermarket value, incentivising more users to spend.
Fortnite, Apex BattlePasses
Those premium items don't come back after a season.
Open Trade at end of a Season = continued revenue from old items, while maintaining original monopoly price. Items have aftermarket value, incentivising more users to spend.
#3: Stablecoin Economy
Devs: Sell/Buyback Platform Currency at fixed price window E.G: $1/$0.9
Players: Use currency as a SOV to trade on FM or exchange items from dev shop, while devs tax velocity on internal markets
Similar Examples: EVE Plex, Albion Gold
Robux, 2ndLife, QQ
Devs: Sell/Buyback Platform Currency at fixed price window E.G: $1/$0.9
Players: Use currency as a SOV to trade on FM or exchange items from dev shop, while devs tax velocity on internal markets
Similar Examples: EVE Plex, Albion Gold
Robux, 2ndLife, QQ
#4: Gacha
People love rolling for gacha waifu/husbandos
Using example #2
Exclusive Gacha Banners: 45D, Hero Untradeable once locked to account. Spare shards tradable after 45D
Heroes accessible to all users+Dev ⚖️monopolize $ for 45D.
Removes pyramid from fixed supply distro.
People love rolling for gacha waifu/husbandos
Using example #2
Exclusive Gacha Banners: 45D, Hero Untradeable once locked to account. Spare shards tradable after 45D
Heroes accessible to all users+Dev ⚖️monopolize $ for 45D.
Removes pyramid from fixed supply distro.
Other Notes:
Inflation through user growth is not inherently bad in games.
Games live and die on users.
Control prices of basic assets & needs, create consumption and retirement loops for others.
Inflation through user growth is not inherently bad in games.
Games live and die on users.
Control prices of basic assets & needs, create consumption and retirement loops for others.
Final Words:
Gameplay experience define your content.
Market Structures define what's possible for your users
Create experiences that can address different types of users
F2P, Speculators, Paying Players have different needs and wants. Know your product, know & fulfil your users
Gameplay experience define your content.
Market Structures define what's possible for your users
Create experiences that can address different types of users
F2P, Speculators, Paying Players have different needs and wants. Know your product, know & fulfil your users
Hopefully my brain farts help the space understand gaming better! my DMs are open for discussion and I will try to reply comments
Also I hope this gives some insight into the care that @tatsumeeko's exemplary team puts into designing every part of the game <3
Also I hope this gives some insight into the care that @tatsumeeko's exemplary team puts into designing every part of the game <3
Thanks to the chads @cloudxgmf @chng_raymond @0xkapital_k @wassiecapital at @thecoreloop for proofing and bouncing ideas with me. check out thecoreloop.notion.site/thecoreloop-gg… for more content
Shoutout to @fareastwitcher for deep insights on what makes games/gamers tick.
Shoutout to @fareastwitcher for deep insights on what makes games/gamers tick.
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