Theme 5: Blockchain Gaming in 2022

2022 Snapshots Theme 5: Blockchain Gaming in 2022

▪ P2E will gain traction as a form of economic empowerment.

▪ There will be increasing convergence of entertainment mediums towards gaming and the metaverse as traditional brands, artists and VCs’ gain exposure.

▪ Metaverses will become open and interoperable for players can trade their ingame digital assets across gaming metaverses.

2.3bn

NFT games revenue (US$, 3Q21)

22%

NFT game as a percentage of all NFT trading volume (3Q21)

Core thesis

Blockchain games (GameFi) enhance the gaming experience by issuing in-game assets (NFTs) built on blockchain technology. Blockchain games align the incentives of gamers, developers, stakeholders to participate in the gaming economy.

Significance and Disruptive Impacts

Blockchain gaming disrupts traditional gaming by building incentives into the gaming experience (Play-to-Earn) and is an agent of economic empowerment. The P2E economy is fast emerging as P2E takes an increasing time-share in daily lives.

Expectation for 2022

1. P2E to gain traction as a form of economic empowerment P2E will gain traction as gamers increasingly value and invest their time and resources into blockchain gaming. (See Interview with Bowie Lau, True Global Ventures)

2. The emergence of a P2E economy GameFi and the Metaverse will create more economic opportunities and digital experiences. A new generation of consumers is interested in virtual goods and experiences. These factors combined could make gaming a competitive source of income (See Interview with Alex Kent, TPS Capital, Interview with Sébastien Borget, The Sandboxand Interview with Bowie Lau, True Global Ventures)

3. Convergence of entertainment mediums towards gaming and the metaverse There will be more crossovers between music, metaverse and gaming, especially for community building. There will be a meaningful pick up in traditional brands, artists and VCs’ exposure to the metaverse. (See Interview with Zaf Chow, Animoca Brands, Interview with Sean Zhang, Talon Esports)

4. Interoperability of gaming metaverses Metaverses will become open, and players can trade their in-game digital assets across gaming metaverses. (See Interview with Zaf Chow, Animoca Brandsand

24x

Number of wallets related to gaming activity (3Q21 vs. first week of 2021) Interview with Sean Zhang, Talon Esports)

5. Community is king Like NFTs, strong community engagement is paramount to the success of playto-earn projects. (See Interview with Zaf Chow, Animoca Brands)