Research Summary
The report provides an in-depth analysis of the web3 trading card games (TCGs) industry, examining the past, present, and future of the genre. It discusses the performance of various web3 TCGs, including Splinterlands, Gods Unchained, Skyweaver, Parallel, and Cross the Ages, and explores the potential of new entries in 2024.
Key Takeaways
Performance of Noteworthy Web3 TCGs
- Splinterlands: Despite initial success, the game has seen a decline in daily active users (DAU) due to economic missteps and stagnant gameplay. The developers’ attempts to diversify gameplay into new genres are slowly developing.
- Gods Unchained: The game has seen moderate success, with a resurgence in secondary market card sales in Q3 of 2022. Despite data limitations, secondary market activity suggests success for the game at the moment.
- Skyweaver: Despite its high-quality art and gameplay, the game has struggled to gain traction due to a lack of strong retention and progression mechanisms.
- Parallel: The game has resonated with collectors and NFT buyers, with secondary market volumes fluctuating between $300K and $1M monthly since Q3 2023.
- Cross the Ages: The game has shown decent secondary market transactions throughout 2023, but it may struggle financially if it can’t find broader appeal outside of France.
Future of Web3 TCGs
- New Entries in 2024: The report predicts a trickle of web3 TCG attempts with twists in 2024. One game to watch is Shardbound, a TCG combined with a hex-grid-based tactical game.
- Impact of IP: The report suggests that future successes in web3 TCGs will likely be built on existing titles, as it’s difficult to succeed without a strong IP.
- Prospects for Large IPs: Large IPs, like those owned by Disney, have better prospects in the digital world. The report suggests that there is more opportunity for success in other types of games that draw on collectible assets.
Actionable Insights
- Explore Diversification: Developers should consider diversifying gameplay into new genres to attract a sustainable audience, as seen with Splinterlands’ attempts.
- Focus on Retention Mechanisms: To gain traction, games need to have strong retention and progression mechanisms, as demonstrated by Skyweaver’s struggles.
- Consider Broader Appeal: Games need to find broader appeal outside of their initial target audience to avoid financial struggles, as suggested by Cross the Ages’ situation.
- Investigate IP Opportunities: Developers should explore opportunities to build games on existing titles, given the difficulty of succeeding without a strong IP.
- Consider Collectible Assets: There may be more opportunity for success in games that draw on collectible assets, rather than strictly adhering to the trading card format.
