Developing Perion’s philosophy for investing in web3 games has been a process of developing hard-won knowledge. This philosophy will no doubt evolve over time, though as it stands today our strategy for investing, much like Perion’s “why” for existing is centred around a pillar of creating value using blockchain in gaming.
Our investment focus is in the developer and studio segments of the market, rather than distribution onwards. Our reasoning is that distribution giants like Epic and its peers can and will likely quickly adapt to embrace web3 technology, should it gain broad acceptance among gamers. The flexibility of these platforms means any new entrants would be competing with powerful incumbents for a share of that market.
On the other hand, established game developers face many more questions in adopting web3 technology, mainly due to concerns about disrupting their existing customer base. Their potential hesitation creates an opportunity for innovative web3-native studios to capture a share of the market and redefine the gaming landscape. Therefore, our bet is on these creative studios who are leading the charge in integrating blockchain into gaming.
When considering the allocation of resources, we put the player first, prioritising experienced teams that have a demonstrated history of delivering engaging games, no matter whether on Atari, iOS or Playstation 5, Unreal engine or GoDot—We believe industry veterans are more likely to successfully navigate the shift to web3 an introduce the technology as powerful tool in their tech-stack, rather than the only value proposition on on offer.
If you’d like to learn more about the simple process we apply when evaluating a web3 game, please read on.
The world of web3 gaming is an exciting new frontier. However the space contains myriad complex terms, concepts and ideas. For most people interested in web3 gaming these parts are both as exciting they are confusing. When investing in any game we like to cut through that noise, basing our investment foundation on four simple pillars we consider when evaluating the potential of a web3 game.
Here's a quick primer how you can, and how we currently navigate the evaluation process.
Experienced teams with a history of creating successful and engaging games are a pivotal aspect to consider. Look for game developers with a track record of shipping quality gaming experiences, throughout the evolution of the gaming industry. Whether they developed on early windows or console iterations, right through to the advent of virtual reality—A team that has demonstrated the ability to evolve with the changing technology of game development, will evolve with the implementation of web3 in the gaming stack.
To ensure that a game has the potential for broad appeal, evaluate the addressable market. Games that attract a large, spending player base in their web2 counterparts are highly likely to do the same in web3. The introduction of true ownership will greatly expand this base, as players can now gain real-world value from their in-game activities. Consider how many player will realistically engage with the games you approach.