Thread by @jetherean27

Hey you!

What are some of your earliest memories of playing games, and how have you seen gaming change over the years?

Let's journey back in time and explore how web3 will impact the future of gaming. 🧵 👇

1/ The Golden Era (1978-1983)

This era laid the foundations of modern video gaming with the home console bringing gaming into the mainstream and providing unprecedented immersion and accessibility for players.

Pong by Atari became a sensation and helped popularize the medium.

2/ The rise of arcades introduced the social aspect of gaming, allowing gamers to gather and compete in a shared physical space.

Classic games like Space Invaders and Pac-Man are still played and beloved today, evoking nostalgia for the golden age of gaming.

3/ In the 90s, consoles like the Sega Genesis and Super Nintendo brought new levels of graphics and gameplay to the table.

The introduction of 3D graphics opened up a whole new world of possibilities for game developers.

#SuperMario

4/ During this time, PCs became more powerful and connected to the internet, giving rise to online multiplayer games like Doom, Quake, and @everquest.

These games allowed players to compete in tournaments with others from around the world.

5/ Fast forward to 2000s, the online gaming took over.

Massively multiplayer online (MMO) games like @Warcraft, @RuneScape and @LeagueOfLegends became immensely popular.

6/ The rise of online gaming also paved the way for new business models that relied on subscription fees and in-game purchases, rather than the one-time purchase of a physical game.

7/ The shift to online gaming brought a new level of social interaction and pushed the industry toward genuine globalization as players across the globe could now connect and play together virtually.

8/ The Rise of Mobile (2010s) & Free-to-Play

The emergence of mobile gaming changed the landscape of the industry. Smartphones and tablets have become ubiquitous and highly accessible to games on the go.

9/ Mobile gaming quickly became a dominant force, with games like @AngryBirds, @CandyCrushSaga, and @PokemonGoApp becoming major hits worldwide.

10/ Apple played a huge role in the growth of mobile gaming, thanks to the launch of the App Store in 2008.

The App Store popularized the free-to-play business model, which enabled game developers to generate revenue through microtransactions (small in-game purchases).

11/ Mobile games have become twice as popular as console games thanks to their accessibility and affordability, which has led to the demise of the portable gaming console market.

12/ According to a report from @NewzooHQ, mobile games 📱 account for 50% of 2022 global gaming revenue, followed by console games 🎮 (28%) and PC games 🖥️ (21%).

13/ Web2 games, while entertaining and popular for decades, still suffer from several major issues that limit their potential. These include:
🏢 Centralized control
⛳ Lack of transparency
🙀 Lack of true ownership for players

14/ Web2 games are subject to centralized control, meaning game publishers have the power to change the game's rules, shut down servers, and take away players' in-game assets.

15/ Lack of ownership is a major issue for players who have invested lots of time and money in a game, only to be limited to using those assets within the game's ecosystem.

16/ Fun fact: Do you know how @ethereum was born?

It all started when @VitalikButerin's fav character in @Warcraft was cruelly nerfed by @Blizzard_Ent, inspiring him to create a decentralized platform for fairer transactions and greater control🤯

17/ 2020s - Present: New Gaming Model

That's where web3 gaming comes in. Web3 games offer a solution to these issues through the use of blockchain technology by enabling:
⛓️ Decentralized control
🎯 Transparency
💎 True ownership for players

18/ This paradigm shift is made possible by NFTs, which allow players to trade in-game assets and even loan them out for profit.

NFTs also enable interoperability across different games and platforms (still in development).

19/ The concept of Play-to-Earn (P2E) emerged from here, allowing players to earn crypto by playing games and offering a new way to monetize gameplay and reward skilled players.

This is a game changer as players are not just spending money on the game but also earning from it.

20/ Not only that, smart contracts allow developers to create truly decentralized or on-chain games like @darkforest_eth, which provide players full autonomy and control that was previously impossible.

I'll leave it for another post on on-chain gaming.

21/ One example of a popular web3 game is @AxieInfinity, which allows players to earn crypto by breeding, battling, and trading creatures called Axies. The game has gained a huge following and pioneered a passing phenomenon P2E model.

22/ Another example is @TheSandboxGame - a blockchain-based version of Minecraft and Roblox where players can create their own items and trade them as NFTs. The project successfully raised $93M led by Softbank.

23/ As fascinating as it sounds, web3 gaming is not flawless and still needs some ground to make up. They face several challenges including:
🤖 Technical complexity
🔧 Security risk
👨‍💻 High learning curve for gamers
📉 Regulatory uncertainty

24/ Security remains the largest hurdle in the blockchain space. A prime instance is Axie's Ronin Bridge hack which resulted in losses of over $600M 💸 , highlighting the need for heightened security measures.

25/ Additionally, due to the earning mechanism, the overall sentiment of current web3 games focuses on financial gain > user enjoyment, distracting the game experience.

=> P2E model needs to be adjusted to create more sustainable gameplay.

26/ This signals that web3 game developers should aim to create FUN gameplay experiences that prioritize user enjoyment, eventually building a loyal fanbase and generating sustainable revenue.

27/ So, what does the future hold for web3 games 🤔 ?

It's hard to say for sure, but we've seen increasing investments and more builders in the space than ever. The industry is still in its early stages, and there's a lot of room for growth and innovation.

28/ The potential of web3 games is huge.

If done right, it can pave a value loop for both players and developers, creating a more equitable ecosystem.

@Delphi_Digital puts out a nice visual below

29/ Amongst other VCs and DAOs, @a16z is placing a big bet on the future of gaming with its $600M GAMES FUND ONE, giving a dose of optimism to web3 gaming builders.

https://twitter.com/andrewchen/status/1526957087439237121

30/ Bear market is a great time for builders to filter the noise and focus on what matters.

Like a chef taking time to craft a delicious dish 🍳 , web3 game developers are using this time to create innovative and valuable games that will be worth the wait.

31/ And that's the journey for today 🙌 !

Follow me for more content on web3 gaming in the future 😊

32/ This thread was inspired by the amazing article from @sal_coin. I highly recommend giving it a read for some golden insights.
sal.xyz/history-of-gam…

33/ Some cookies 🍪 . Here are people to follow in the web3 gaming space 👇
@VaderResearch
@Loopifyyy
@sal_coin
@gabrielleydon
@0xRyze
@JoshLu

Web3 games and infra projects to follow 👇
@AxieInfinity
@TheSandboxGame
@DigiDaigaku
@TheTreeverse
@Ancient8_gg
@cartridge_gg

34/ Special thanks to @nonieengel, @taylorsilv and @seidtweets for providing feedback on this piece 🤝

35/ Are you interested in reading more content from the @chapterone researchers?

Check out more content from us here:
twitter.com/i/lists/162053…

To add:
@G7_DAO
@brycent_