The future of the GameFi industry: A reflection with Tim Kingery
Tim Kingery is the CEO of ArcadeLand, a web 3.0 version of Steam that, similar to Sandbox, lets players build their own experience in a metaverse interactive environment that features new games.
Tim was invited to Codyfight Twitter space on the 5th of July to discuss and express his view on the GameFi industry and other affairs related to Web 3.0 and decentralized gaming. The discussion featured Vainus Gabalis as Tim’s counterpart on the space representing Codyfight and both projects realized that their views harmonized in many of the topics covered, justifying the tight partnership between both GameFi companies.
Kingery is an experienced blockchain user with 5 years worth of experience in the industry and has decided to direct all his efforts on ArcadeLand to achieve an open space for gamers to truly enjoy gaming on this new model of business.
“We are geared for the average player, our goal is to escape the niche within a niche. The current state of the GameFi space is not looking good; many scams, a lack of innovation, and a constant vulnerability for gamers. We are trying to build a safe space, and a portal accessible to the 2.5 billion gamers in the industry. Web 3.0 gaming should be available for anybody, as well as there should be a balance between rewards, accessibility, and quality”.
The GameFi model is a rather unknown territory for many gamers and many are still very reluctant to break through in the model. Many initiates seem to have caused anger among the community, for example, STALKER tried to implement NFTs in its gameplay but eventually backed off due to the lack of support of its group of players. However, despite the anger of many conservative gamers, big AAA companies seem to have started to flirt with the idea of GameFi. This generates an interesting dichotomy between a community that still refuses to play in the GameFi space and big fishes that seem to see the benefits of investing early.
Tim also seems to navigate between the two waters; as a player, he understands the lack of enthusiasm of the community but strives for reconciliation,
“The biggest issue is that it is not done right. The number of people that are unethical and irresponsible is putting out headlines. The cost of entry is very high, people usually have to be sponsored by a guild or invest a lot of money, having the possibility of losing everything as happened in Axie. Another issue is the unbalanced dynamics within GameFi games. Gamers love analogs and finding those rare gemstones hidden in games. Diablo and World of Warcraft have that farming model of items popular with gamers, however, the spirit is lost when Pay2Win comes along”.
The issue of Pay2Win is a very controversial topic in the gaming industry, especially with the new Diablo 2 incorporation of such a model. This concept is essentially a way to give a major advantage to players that spend money on the game against other players that choose to grind for their rewards. Many gamers are against this system and consider that the incorporation of NFTs in their favorite media will reproduce these ghosts that they have been trying to avoid.
Tim is essentially against the Pay2Win model and tries to make a difference in the GameFi sphere by achieving a sustainable balance, “The gaming balance is very important, the quality should go first and if you choose to incorporate NFTs, they should be done in a way that avoids disturbing the environment. That’s where Diablo got it wrong, they choose to not incorporate NFTs and let players be scammed on eBay, all while creating a big disadvantage between users by charging a lot of money for items with a lack of real purpose”.
However, the fact that many CEOs in the crypto gaming space can realize the flaws of the market, offers a hopeful perspective for the new generation of games in the industry. Tim is one of the few that are looking out to improve this new generation of developers and gamers, “I think regardless if it’s a traditional model or GameFi, a game needs to be very good. Then NFTs can come and be optional. I also think the freemium model is another big factor that should be pushed. A good example is Fortnite, a free-to-play game that allows for cosmetics. You can play for three seasons and get the next season pack. There should always be the possibility to offer NFTs and other decentralized assets, but keep it balanced for the rest of the gamers”.
The balance is a key factor for Tim in the industry as he believes that, ultimately, the GameFi space has an overwhelming investor influence and not enough gamers, “ A lot of the tokenomics for these games are very rewards oriented. That is because a lot of the product design is done with investors in mind, and that’s pretty much our whole community. But you also need feedback from gamers who do not have funds or investment desires”.
This is something that many GameFi projects are starting to shift their narrative from. Games should be improving and investing time in producing the best quality for gamers, and not just live and breathe for the money. Tim believes this is a process that comes with time, and especially with the influence of AAA companies behind-the-scenes,
“We have enough signals from big publishers that they will break through in the GameFi industry. They are already making the money and dominating the traditional games, so they have enough resources to make it right. Once we have RPG, mobile, and FS from AAA, it will take off. The industry perspective is shifting as we speak. In fact, they are already buying GameFi studios because they see the potential. Within two to five years, it will emerge and change the unsustainable unfriendly ecosystem that gives this model a bad name”.
At the end of the day, GameFi is still a quite young industry with plenty of steps to walk. The right path should be a balanced ecosystem with a highlight on the quality of games. Stepping outside of the niche is a key challenge in the industry and there is only one option to achieve it: a smooth transition. As Tim explained, NFTs should not be shoved down gamers’ through, but consistently introduce them and approach its benefits, allowing gamers to play for free until they are ready to jump into ownership and trading. And the most important aspect is to create games that people really want to play.
