Key Takeaways and Opportunities from the Latest Game7 Report for Entrepreneurs
Identifying opportunities is one of the most critical skills of a successful entrepreneur.
At Kayros, the opportunity is our second name. Not only because ‘Kayros’ literally translates to ‘opportune times’ in ancient Greek as we spoke in our first article, but we are also lucky to have a diverse team with years of experience in gaming, entrepreneurship, fintech, marketing, cryptocurrencies, design thinking, and more.
So, we believe we have spotted an amazing opportunity!
We're building the platform for the Ultimate GameFi Experience:
Play-to-Earn games discovery, one-stop-shop for all the in-game assets, payments by credit card, gaming wallet and exchange, NFT rental marketplace, and more.
We are thrilled and dedicated to building Kayros, but we also believe that with opportunity comes responsibility. So, we take the responsibility to share all the valuable information about the opportunities in GameFi and hence, help the community become bigger and stronger.
With opportunity comes responsibility
Recently, the autonomous gaming community Game7 published a comprehensive report that analyzes the challenges and opportunities in the GameFi industry. The report is based on interviews conducted with over a hundred leading game developers building Web3 games. It captures the issues that are the most pressing to each developer. Along with that, it shares insights on how to turn these challenges into opportunities.
Whether you’re an entrepreneur looking for cool ideas to start your own business or a developer who wants to get a better understanding of the obstacles and opportunities in the gaming industry, the report is sure to help you out.
In this article, we look at the key takeaways and opportunities from the Game7 Game Developer Report.
Game7 Game Dev Report: Key takeaways
Blockchain selection: Chain selection can make or break a game. While there is no perfect blockchain for game development.
Smart contract development: Whether it is tools or documentation, there are plenty of resources for smart contract development, thanks to DeFi. But we can’t say the same about Web3 game development.
NFTs: Currently, there are no NFT standards optimized for Web3 games. While the ERC721 standard is great for profile-picture NFTs, their non-fungibility makes it difficult to involve a trustless third-party minting interface. ERC1155 standards, on the other hand, are more optimized for in-game accessories and weapons as they allow more functionalities.
But ERC1155 is not widely popular yet. Especially with marketplaces. Part of it is because the higher supply cap of ERC1155s is associated with lower token prices.
Wallets: Currently, no wallet serves the specific requirements of the gaming industry. The UX of existing desktop and mobile games is not up to par. The industry needs a game engine that directly integrates Web3 infrastructure via easy-to-use SDKs. Game devs and players should be able to sign transactions natively in-game without using a browser, as browsers are more prone to attacks. Wallets should showcase game-specific NFT metadata and graphics without impacting security.
Marketplaces: There are many NFT marketplaces. But third-party marketplaces like OpenSea aren’t built for games. For example, gaming NFTs update their metadata frequently. NFT marketplaces often don’t reflect these updates. Another concern is that gaming NFTs are not a priority for marketplaces as they are priced lower than PFP NFTs, driven by speculation rather than utility.
Data synchronization: There is no standard for adding on-chain/off-chain data to blockchain games. Creating standalone solutions is challenging for game developers. The lack of on-chain data tailored for game devs is also a cause of concern. There are no dashboards or tools to analyze on-chain data and in-game activity. Furthermore, NFTs across multiple chains can’t be viewed from one indexer.
Security: Like all Web3 applications, security concerns like exploits, hacks, and scams plague blockchain gaming. The industry is in dire need of security best practices and standards. Some leading causes of security exploits in blockchain gaming are inadequate and irregular auditing, lack of awareness, substandard key management, etc.
Guilds: Gaming guilds make games more accessible and profitable for gamers and investors. Yet, guilds require improvements to unlock their full potential. For example, scripts and tools used in guilds become outdated quickly as games make updates. Trustless NFT lending remains a dream. Moreover, most guilds recruit and onboard guild members and scholars manually, which is time-consuming and inefficient.
Economic design: Economic design is one of the most interesting puzzles of Web3 game development. Web3 economies, being relatively new, haven’t yet passed the sustainability and endurance test. Part of this is because users are more focused on ‘earning’ than ‘playing’.
Legal/regulatory complications: The crypto industry is mired in legal and regulatory complications across the world. The unfavorable legal environment and uncertainty cause many projects to halt halfway. Another issue is the lack of resources that lead projects, game devs, and users in the right direction. Legal guidance is expensive. Many jurisdictions require crypto platforms to collect KYC details from users. Not many users are willing to share their information with online platforms for gaming.
Community: Most Web3 communities are managed in Discord and Telegram. While Telegram conversations mostly revolve around the investment aspect, Discord focuses on both investment and gameplay. The lack of programmability of these platforms is a problem. The case is not different when it comes to other Web3 community management tools. Coming to community identification, it is difficult to reward credible players and prevent multi-account bots, as there are no means to track player identity at present without KYC.
Distribution: There is no trusted Web3 distribution platform at present, making it difficult for game devs to publish their games to users. On the other hand, gamers have a hard time finding reliable information on new games. Although token launchpads are a great place to build more exposure for games, they won’t list a game unless they receive discounts.
Apart from these, games face device-specific challenges. For example, desktop games are exposed to censorship risk. They also come with security risks. Mobile games, on the other hand, heavily rely on platforms like App Store and Google Play Store. Due to the lack of regulatory policies, they face the risk of potential shutdowns.
Education: The Web3 industry, in general, needs to focus on publishing more educational content and resources to penetrate the masses. Currently, there is no go-to public Web3 knowledge portal for users or game developers. Most content is biased towards a particular ecosystem or project. Unbiased content fails to capture attention due to paid shilling, which eventually tarnishes the reputation of the industry.
Talent: The gaming industry is facing a developer bottleneck. The lack of educational resources and infrastructure raise a high barrier to the industry for Web2 developers. Unlike Web2, there is no hiring platform dedicated to Web3 talents. Currently, senior management and executive-level talent are hired through referral networks.
Nothing is more expensive than a missed opportunity
And we have just approached the most interesting part! Not only does Game7 grabs attention to the current challenges in GameFi, but also provides a comprehensive list of business ideas and solutions.
So, if you are an entrepreneur looking for inspiration or ‘opportune times,’ this is it. Grab a pen and paper and hop on the list below. Nothing is more expensive than a missed opportunity (H. Jackson Brown, Jr.).
It's time to act!
- Chain Comparison Dashboard that offers both qualitative and quantitative data points.
- Open-source educational guidelines and repository for game devs.
- Smart contract delegation framework that allows game devs to modify smart contracts with different levels of restrictions. Smart Contract Manager that allows the management of all smart contracts in one place.
- Mobile Wallet Authenticator, specifically built for games.
- The hybrid in-game marketplace that bridges to third-party on-chain marketplaces in real-time.
- Boilerplate marketplaces that can serve as a customizable template with on-chain and off-chain optionality.
- Regular monitoring and vulnerability testing for Web3 assets.
- Standardized open-source scripts for guild management.
- Trustless NFT lending solutions.
- A game economy analyzer with tools that allow game devs to enter game data and understand their economy better.
- Token Emission Schedule Tool that replaces spreadsheets to show token emissions over time based on vesting and inflation.
- A legal blueprint that gives guidelines on how to launch a token, DAO, NFT collections, etc. with region-specific examples.
- Open-source programmable community management tools with a standard user identity system, Discord blueprints for game devs, and better Discord verification bots.
- Unbiased Web3 Games Discovery Dashboard that focuses on gameplay and game data rather than investments and earnings.
- A community-curated, neutral, and credible source of information on all things GameFi.
- An inclusive hiring platform for Web3 games
If the ideas above have piqued your imagination, join the new GameFi revolution and create value in the industry. Let's spread the love to GameFi around the world.
And, on our side, we would like to thank Game7 for the extraordinary work. After reading thoroughly and working with it, we are even more confident that Kayros is on the right track. It's time to play to earn!
We’re slowly stepping into the new era of decentralized gaming. The opportunities in the fast-growing sector are boundless — only imagination draws the limit. In fact, blockchain gaming is responsible for around half of all blockchain usage. The industry is exploring new business models and technologies to bring blockchain gaming to the mainstream.
Game7 is an Autonomous Institution with a treasury that's managed and deployed by the community. The community helps shape capital allocation decisions, define gaming standards, fund open-source software, and help make the gaming industry sustainable by ensuring it’s equitable and fair. The Game7 treasury will be invested in infrastructure, tools, communities, and games. By focusing on progress rather than short-term profit, the platform enables teams to focus on building and creating impact.
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At Kayros, we’re building the ultimate GameFi experience. You can access everything GameFi from Kayros. We simplify blockchain gaming by providing easy play-to-earn games discovery, a one-stop shop for all in-game assets, seamless payments by credit card, gaming wallet and exchange, NFT rental marketplace, and much more.
We bring GameFi to the masses by pushing the frontiers of Web3. To learn more about Kayros and our vibrant GameFi ecosystem, visit our website and join the waitlist!