Why Web3 Grows the Pie for Publishers and Gamers

Transcript

the next presenter um is again in the metaverse and they created a pet overs um he will tell you more about it um we will welcome max stoko on the stage ceo and co-founder of dogami all right technical issues so i should be presenting some sort of entertainment sorry i have nothing prepared okay good hey good morning everyone uh thanks for tuning in um yeah so my name is max struckel

i'm co-founder and ceo of dogami i'm going to get to dogami later with what it is and what we do but i think gaming is is so important because it's one of the precursors for the metaverse it's a virtual interactive space in which people can communicate and interact and i think what we web free offers in this respect is that you bring nfts and crypto tokens into the system and those enable those transactions [Music] all right um i cannot see my presenter screen [Music] sorry

are good so yeah um so today i want to talk about why web3 grows the pie for both publishers but also the gamers consumers which is probably the most important thing so i'm myself max um austrian based in paris before joining lugami i had a quick stint three year stint at bcg as a strategy consultant but eventually i decided to join this exciting world of gaming um because i used to be a big gamer when i was younger and you know when you when you game a lot i played probably 20 000 hours in my life then you know that um in-game assets they have value and they're traded either in gray markets

outside of the game or in-game and depending on what it is um different stakeholders lose value um yeah so i've been doing dugami now since roughly a year moved to paris for that from from munich so what is trugami um it's a mobile ar game a web free game based on 3d docs we always joke that it's sort of tamagotchi supercharged so i think some of you might know that still from the 90s um so mobile ar because it's a bit like pokemon go so the idea is that you sort of explore your vicinity did you go out with your virtual dog and that you solve riddles um web free because we leverage crypto

tokens and nfts to to enhance the gaming experience and then obviously everything's based around 3d docs which are the virtual pets for this sort of virtual pet diverse what we call it yeah um we've existed pretty much 10 months now this slide is sort of to show the sort of appeal for consumers of the space so within 10 months we were able to build a community of 230 000 people with zero ad spend we generated two and a half million revenue and we had a six million seed round from ubisoft animoka brands yeah and numerous other funds and those were picked up by

quite some media outlets over the past year all right so what is the what are the hallmarks of web free gaming how do you spot that i think there's four components first one is nfts second one is crypto token third one is a video game um it's obvious but not so much in the space and then fourth i would say is an engaged community much more so than in traditional gaming so why why these four blocks and why are relevant so nfts in this space to become characters accessories so basically you have to buy one nft to play the game to use it

um ideally those nfts they have another benefit is that interoperable with other metabolises so it's not only just you know you buy a license to a game and then you play the game but you actually play the nft by the nft to play later game and if you lose interest you can give away or sell your nft again to other players then grip token just like in every game there's usually like some sort of soft currency or hard currency in a game and for that you leverage crypto tokens again you're either rewarded with them you either purchase with them and they also treatable on the market and they are in addition also used for

dowel boats so if you have any thing that you want to ask your community for you usually sort of have voting rights that are um tied to your stick of tokens then game video game obviously the thing is ourselves included ironically we're not live yet so we haven't don't really have a game yet and a lot of projects are struggling because they're like yeah let's do a blockchain game and they're promising this sort of triple a game that usually takes three to four years of development and now they are all lacking behind i mean us at least we now have a timeline where we can launch in beginning of august

and um usually those games also have earning opportunities so for example you can as i said just grind away and then you earn crypto tokens or nft accessories or you can in our case you can breed so you can beat two dogs together and then you get a new dog which you can sell on the secondary market and then you also have seeking opportunities for example and then engaged community um our community live on discord pretty much it's 24 7. um they really from normal stakeholders and consumers they very much become contributors so when you're in this sort of discord people go mad like they

do memes they send the pictures of their dogs they do contests etc so it's really 24 7 we have customers from over 100 countries in the first nft drop so there's a really a global appeal for this sort of project and i always say that we are not only we are but communities that are passion based work the best in in web so when you look for example that mba top shot is around basketball everyone loves basketball then so rare is about football then you have steppen which is about running and for us it's about dogs and has turned out really great to be honest so yeah it's a web-free passion-based community

is the thing so yeah to get to my argument why i think this is so powerful and why we just grow the sort of the pie for both the producers or the developers but also the gamers i want to deep dive into sort of the benefits for the gamers but also for the publishers so let's jump into the gamers yeah so three key benefits first one of which is true digital ownership so enabled by nfts there's markets for in-game rewards more people can actually do something with the digital assets and then you can sort of offer experience that

extend beyond the initial media this gaming to other branches of media so let's start with true digital ownership i think it's been said a lot but you really go from renting a license to user software to actually buying an nft that you can use in that ecosystem so as a consumer you have to benefit that you have this eternal decentralized proof of ownership that you can do whatever you want with um so for example i mean if you buy some using the itunes app store these days like and you want to abandon apple you're basically screwed you cannot really do anything with it anymore

and this is where sort of nft is it is similar for gaming um if you want you're locked into a certain platform you can't really do anything anymore whereas with nfts you're free and you can sort of sell it again to someone else if you find a buyer of course or you can just port this to another ecosystem so then um for the in-game rewards one i mentioned it earlier so in the traditional world just sort of grey markets for in-game assets most famously like for for example for world of warcraft 10 years ago there used to be huge farms in china where hundreds of people play world of warcraft just to sell those

items on ebay sort of banned the practice after a while but it sort of shows that there is a lot of interest for that and the problem is that with those great markets as a publisher you don't really earn anything and also as a consumer it's quite risky because often those markets are fraudulent so it's better if there's an official marketplace that's either proprietary by the publisher or a third party and that you have sort of say a safe alley to trade your digital assets um yeah so i think that's pretty good and then as i said you have experiences beyond the game so instead of buying a one-off license

you can basically um go to interoperability for other metaverses for example in our case um you buy a virtual nft dock as i said which can be used in our game but also we have done a partnership with the sandbox so this sort of roblox metabolism so you can port your dog from our platform which is on tessa's to polygon or you will be and then you can use this dog in this metropolis it sounds quite profane to begin with but it's actually quite nice when you think about that you in a digital space you can use your assets in in a free manner just you can can use a car and go from a to b or

something like that it's like a virtual real asset um [Music] and also like you can say that those nfts entitled the holders to new experiences so tom brader used to be a big game right and then they did a movie so for example you could say if you are a tomb raider nft holder you can also watch the movie or you can also access an experience in disneyland i don't know so there's plenty of experience opportunities to enhance the experience [Music] for the web for the publishers i think there's also three sort of core benefits so you have a stickier community because you go from passive consumers

that only download the game once and then usually quit after day to a community that really enjoys being around ideally and that sort of is invested literally invested as stakeholders they contribute to the ecosystem and the sticky so i mean usually at games and mobile games in particular look at retention rates of free to a day 30 retention rate of three to five percent whereas for some plea to earn games or web free games you see 90 day 30 retention which is incredible um also from the secondary market royalties you as a publisher can benefit so basically instead of having those

gray markets where you don't really can tap into you have as i said this official markets where you also take royalties so in our case we said uh we did one point sort of two million revenue in the first drop uh euros and then in the this month there was so much trading activity that we roughly made 30 to 40 percent of those primary sales volume also in secondary market fees so this is quite quite an interesting revenue stream too that's not only interesting for gaming but also for allah media and yeah and then there's sort of all the bistef opportunities so you go from a very linear business model that's sort

of i create a game i sell it you play buy so you go to a model where you actually create a platform for ip and content that can be accessed with crypto tokens it can be accessed by nfcs or just by being part of discord so when you look for example that who have you have played sims okay so quite a few so when you imagine a sims in this sort of new brave world of web3 you could think that each item within sims could be an nft or an accessory so you can basically just go shopping and then you can furnish your house and you can furnish the clothes

so buy the clothes and if you want to get rid of them again you can sell them on the secondary market which is obviously great for the sims 2 and i think that would really also enhance the experience um yeah and i think this combination of benefits is really even though as a publisher give away some of the control it really sort of creates a bigger pie and i think this true digital ownership leads to a stickier community markets for in-game rewards then lead to a secondary revenue stream that is the other the royalties and for these sort of experiences that are enabled by

and using crypto tokens you have new pistol opportunities as a as a publisher so yeah and what are those pistols opportunities so you can think of doing nft variables and consumables so for example in our case you have to stork you can for example sell purina pet food you can do caps that are co-branded with other retail brands so we're now working with a big american retail brand um for like doing hoodies for the dogs and they see this is in la to also enter the metropolis you can create spin-offs of that ip that you're creating they can go cross chain

so you can sort of enter into new metaverses and then you can just leverage your discord and twitter audience for promotions which is sort of product placement let's see and then last but not least you can also do physical merchandise um like sort of if the brand is nice you can create hoodies and and caps etc so those are all revenue streams that are very appealing for publisher that go beyond the sort of traditional gaming model all that being said i think the fundamentals and most web free games haven't really nailed that still have to be still hold true like you need to have a flawless ux the

on-board it needs to be super easy smooth i i cannot explain to anyone how to open a a temple wallets we won't get to the millions of users you see in traditional gaming so we need to have a very good and flawless ex to onboard those customers that are outside of this web free bubble also the ease of access needs to be good and that's not only the ux but also the entry cost um that's actually something that i think we're struggling a bit because the nft prices get so high that they're basically unattainable for let's say people in southeast asia india or latin america and so it's really always just limited to the to audiences in the u.s or europe

so i think this is a challenge and then obviously just like in other games you need to be able to provide high entertainment value if your game is boring if it doesn't have the content depth you're going to lose your people or you're not going to attract them in the first place so unless you have this mass market readiness for free games we won't reach the scale of of gaming that we see today gaming is a 180 billion dollar market yeah last year and twice is twice as big as for example film and so this is one of the biggest sort of use cases for for blockchain adoption i would say all right thank you