The landscape of Web3 gaming investments is undergoing a transformation, as revealed by Robby Yung, the Chief Executive Officer of Animoca Brands. Yung, who also played a significant role in the inception of the well-regarded Metaverse platform, The Sandbox, shared his thoughts during his recent appearance at the European Blockchain Convention in Barcelona.
Discussing the current investment landscape, Yung emphasized the evolving standards for potential investments in the world of Web3 gaming. With the cryptocurrency market experiencing a downturn, investors have naturally become more selective. He indicated that there's a noticeable inclination towards teams that are not just passionate but also possess unique skill sets. These teams are the ones crafting products with undeniable potential in the marketplace.
Shedding light on Animoca Brands' investment approach, Yung mentioned that the company is now looking at projects that are in a further stage of development than before. The bar has been raised, with investors seeking evidence of tangible progress before they decide to invest. Yung illustrated this by saying that a mere business plan wouldn't suffice in the current market. The presence of an initial product build and some user testing results has become almost a prerequisite for securing external capital.
Despite the heightened scrutiny, the latter half of 2023 witnessed numerous successful investment deals. Yung affirmed this by noting that the emphasis on quality has become evident.
One of the pressing concerns Yung touched upon was the issue of user acquisition in the Web3 gaming sector. He believes that the distribution of these games faces obstacles, primarily due to reluctance from conventional gaming platforms.
The inclusion of Web3 features seems to deter mainstream platforms like mobile app stores, Steam, and various console platforms. Yung posits that there's a palpable apprehension about the potential ramifications of integrating Web3. Concerns mainly revolve around it possibly disrupting the established business models, especially the revenue they derive from distribution.
Concluding his insights, Yung expressed that bigger names in gaming, such as Steam, EA, and Epic Games, might be missing out. Their current reservations prevent them from delving deeper into the potentials of Web3 and engaging in meaningful dialogues with its community.