Sandbox co-founder sees AAA game studios adopting web3

In an interview with crypto.news, Sebastien Borget, co-founder and COO of The Sandbox, discussed the obstacles web3 games face on the path to widespread adoption.

Web3 is transforming the gaming industry. In what can be seen as a massive shift from traditional gaming platforms, web3 games allow players to engage more deeply with games in novel, decentralized ways.

These games offer players more control and ownership over their in-game assets, such as items, characters, and currencies. Players can trade, sell, or even create their own assets.

Major AAA game publishers have already been testing these new waters in a bid to improve players' gaming experiences. For example, gaming giant Ubisoft, popularly known for its blockbuster video game titles like Assassin's Creed and the Far Cry series, pioneered the integration of nfts in its hit game Ghost Recon: Breakpoint.

Although web3 games aim to empower gamers, the sector has received a lackluster response from the general gaming community, which still prefers traditional web2 games. According to a Blockchain gaming alliance report51% of users believe that player onboarding is the biggest challenge, while 37.2% consider poor gameplay to be a problem.

Gaming giants like Ubisoft and Sega have recently slowed down their efforts to release new web3 games as they continue to search for a way to crack the mass adoption code. This comes as more than 75% of web3 games released in the last 5 years have completely failed by the end of the year 2023. report by CoinGecko.

Despite the setbacks, the sector is expected to grow significantly, with some projections speculating it will be a $30 billion industry by 2030. Borget, who is also the president of the Blockchain Game Alliance, shared his thoughts on the matter.

You've said before that AAA companies are likely to wait for smaller studios to innovate in the web3 space before entering. How do you think this adoption pattern will play out, especially given the current infrastructure developments in web3 gaming?

It is quite natural in all industries that the largest players are the least inclined to adopt the latest innovations. Their current business model relies heavily on the web2 model, and they have already made tens, if not hundreds, of millions of dollars based on it. Therefore, they lack the agility to start looking for new revenue opportunities or they might consider them too small, even if they are ten million in revenue. This is where the new opportunity lies for smaller, more flexible studios. They are more culturally prepared and have the real challenge of exploring new avenues and trying new things at a much faster pace. And it's what we've seen in the past: only small teams have this approach to test, iterate, fail, sometimes fail fast, but recover quickly.

What about the great players?

Large companies face numerous general processes that hinder their agility. However, at Blockchain Game Alliance, we see big companies like Nexon, Come2uS, Ubisoft, Atari and G2A entering web3 and Blockchain Gaming. However, the way they are doing it essentially involves establishing separate teams that are not limited by the limitations of large companies.

In your experience, what are the biggest challenges facing web3 game development and adoption today?

The first is the lack of emphasis on fun and prioritizing gameplay over simply having a game. This is a recognized issue within the industry and efforts are being made to raise the quality of the player experience in Web3 games to match that of Web2 games. And blockchain, nft and cryptocurrency technologies are here to support the game and make it more attractive to users. The second challenge relates to user experience (UX).

Why is that?

User onboarding still involves several steps, such as setting up wallets, which can be time-consuming. Although opening a bank account or a new mobile operator account also takes time, on Web3 the process is perceived as complicated. Unlike Web2, where the App Store and Google Play push accessibility, Web3 lacks such amenities. However, just as the first iPhones lacked the features present in modern ones, the UX in Web3 has shown improvements in the last four years and there is optimism that it will continue to evolve positively.

With the integration of blockchain technologies with major game engines such as Unity and Unreal, what technological hurdles do web3 games still need to overcome to compete with current web2 games?

I think it's great that within some of the two most used game engines in the world by the gaming industry, we have some form of direct integration that makes it easier for users to interact with wallets and interact with web3 in general. I think there are still some obstacles to overcome, such as distribution and access to players. However, on the development side, it is becoming easier thanks to Unity, Unreal and also solutions like Stardust, which help eliminate the complexities that blockchain presents for developers.

What approach should game developers take?

Game creators should focus on creating great and fun games. Implementing any new technology like blockchain requires blockchain developers, architects, security audits, skills and competencies not typically found within a video game team. Therefore, having middleware solutions and solutions that reduce the need for specific resources is a great advantage.

What strategies would you recommend to attract traditional players to the web3 gaming ecosystem without alienating them with the complexities of blockchain technology?

I think, again, these are traditional players; The first step is to engage them with a fun game and offer them new experiences they may not find anywhere else. Then, I think there is a lot of emphasis on integrated education. This is where guilds and other communities can contribute. I also think it can be helpful if larger platforms come into play and allow users to discover great games without the complexity of blockchain, either through simple wallets that can be connected or through stores that allow or authorize Web 3 games. We have seen Google Play move in that direction and also the Epic Store. Therefore, I am confident that blockchain will continue to progress in terms of adoption and recognition through the commitment of our members, hard work and focus on the right priorities.

Could you talk about the role of nfts and token economics in improving gameplay and player engagement in Web3 games?

The important part here is that once someone commits, whether as a creator involved in building player levels, creating their own avatars, or more in-game content, they are ultimately invested in the success of the entire game. and in building a network. connecting with other actors and communities within it. So whether you are a creator or own one of the game's assets, you become an active stakeholder rather than just a passive consumer. Players feel that through their contributions (such as bringing friends, adding content, and participating in the in-game economy) they also benefit themselves. This not only brings financial benefits but also enhances fun, attracts more people and enables participation in overall value creation, which definitely drives engagement.

What are some innovative ways you've seen these technologies applied in games?

What we've seen, which is really interesting, is that we're in the early days of innovation and there's a lot of experimentation going on in Web3. People are increasingly using decentralized financial mechanisms. Instead of purchasing content, you can stake your token to access content, experiences, etc. Owning an nft can give you access to a whitelist or more content and experiences, where you can climb leaderboards or earn more rewards. Even the simple mechanic of rewarding people with free assets, or what we call a token airdrop, is now becoming the new way. So instead of selling content to attract users, we offer them content, give them a taste of the experience, and then hook them on the fun of participating in it. It's still early days, so we expect to see a lot more innovation in this space.

Do you expect any major AAA game publishers to make a move in the coming years, considering that big names like SquareEnix and Sega have already experimented in this sector?

Yes, we are, and Square Enix, Ubisoft and Atari entered the industry. These are just some of the big names that have announced or published games using blockchain and nft technology. We can expect to see more existing AAA game publishers enter this space, as they are being challenged by the current free-to-play and premium business model. Furthermore, we are witnessing the emergence of new players that become large companies. By being pioneers and pioneers in the sector, they are more likely to take advantage of opportunities in the sector. Perhaps we will start to see consolidation in the space, similar to what we have seen before in other industries.

Will we see a future where the intersection of AAA and web3 gaming creates an economy that empowers both players and developers?

Yes, I think there will definitely be an intersection where AAA games and Web3 creators will create an economy. In fact, we are already seeing it a lot. Think Nintendo's Animal Crossing. People started collecting resources and wanted to sell them to each other until Nintendo blocked it. Therefore, it is quite natural for players to want to exchange resources with each other, and blockchain is a technology that facilitates this, giving users back the power and ownership of the data they possess and the money they spend to acquire said content. This transition goes from an asset rental economy to an ownership economy.

And how would that be possible?

I think it's going to grow on a larger scale within bigger games. Once they attract larger and larger communities, it will become, and perhaps is already becoming, a standard for Gen Z that any digital asset they own is theirs, can be traded, and then provides value. This model not only returns value to them as players, but also offers a new model that developers can adopt.