Dan Wu says blockchain companies don't make good games. Investors are flocking to Web3 gaming ventures despite the lack of hits. Black Myth: Wukong is so hot right now that you can play it in Chinese nightclubs.
Dan Woo doesn't like web3 games.
The CEO of Hero Games and an early investor in Game Science — the studio behind the new Web2 blockbuster Black Myth: Wukong — says he's seen many game industry entrepreneurs turn to Web3 since its arrival.
But he remains skeptical of web3's value.
“I would never invest in those people,” he said Interview Monday with Chinese angel investment company Zen Fund.
“They don't like games, so how can they make good games? It is a very simple truth,” he added.
Wu's comments didn't sit well with those working in web3 gaming.
Crazy feeling
“It's a really crazy notion that Web3 founders don't like games,” says Gabby Dijon, founder of Yield Guild Games. News.
“There are plenty of new and long-time game developers looking to innovate in the game industry by adding Web3 elements”
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Based on the Chinese classic Journey to the West, Black Myth: Wukong has been breaking records since its opening on August 20.
With 2.4 million users, it is the second-ranked game on Steam by combined players after PUBG: Battlefield. Black Myth: Wukong has already surpassed blockbusters like Counter-Strike 2, Dota 2 and Elden Ring.
It's hot enough that you can even play the game in nightclubs in Shanghai.
And more than 1.1 million gamers have tried Reserve physical copies On a Chinese ecommerce site JD.com.
Billed as China's “first AAA game,” Black Myth: Wukong is considered a watershed moment for the country's gaming industry, which has historically been dominated by mobile titles.
Dwindling cadre
Yet he may be part of a shrinking cadre of gaming investors who feel that way.
Despite Web3 Gaming's underperformance, investors poured $1.1 billion into the sector in the second quarter, a 314% increase from the previous quarter and the best performance since the third quarter of 2022, as of July. Report By DAP Radar.
Leading investors continue to show confidence in the space. A16z raised $600 million for a gaming fund dedicated to supporting game studios, while Bitkraft Ventures launched a $275 million fund for early-stage investments in gaming and interactive media.
An influx of capital into web3 doesn't guarantee gamers will follow.
Dijon suggests games like Parallel will be enjoyed by both people who play the game for free and Web3 gamers looking for asset ownership to enhance their game experience.
Blockchain games account for 28% of all dApp activity and attract 2.8 million active wallets per day. Note that wallet activity does not necessarily coincide with actual play of the game.
An influx of capital into web3 doesn't guarantee gamers will follow.
Traditional game developers are divided on the value of incorporating blockchain into gaming. Microsoft Gaming CEO Phil Spencer has voiced his opposition against NFTs and blockchains in games.
In 2022, Spencer criticized play-to-earn models as exploitative, warning that they risk turning players into a workforce to profit from others.
Under his leadership, Microsoft-owned Mojang Studios updated its Minecraft community guidelines that year to expressly ban NFTs and blockchain elements in the game.
However, other developers have adopted the technology. Square Enix has signaled openness to blockchain experiments, while Nexon recently announced a Web3 game based on its successful MapleStory franchise.
But the success of Black Myth: Wukong is a web3 game developers dream of.
There is Callan Quinn News' Hong Kong-based Asia Correspondent. Contact at [email protected].
