In this episode, Jam City launches its new blockchain division and NFT game, Peter Molyneux's game brings in $54 million, S.T.A.L.K.E.R. 2 nixes NFT plans, Ubisoft says it doesn't understand the hate for NFTs, VentureBeat says NFTs pose a threat to gaming, Voodoo plans $200 million investment into blockchain gaming, China is pushing back against blockchain and play-to-earn games, Polygon and Reddit's co-founder creates a $200 million Web 3.0 gaming fund, and so much more!
Episode 5 Keywords: NFTs Threaten Gaming, China Fighting Blockchain & P2E, New IP vs Retrofit, Peter Molyneux Hit, $200M Web3 Gaming Fund
Welcome to the metaphysics podcast. The Metaverse and web three are bringing about the
Unknown:biggest revolution since the internet itself. With your hosts Paul the prophet Dawalibi And Jeff the
Unknown:juice Cohen. We will be bringing you the latest Metaverse, business news and insight into what it
Unknown:all means. The meta business podcast starts now. From the boardroom to the metaverse. This is the
Unknown:meta business podcast. I am Paul the Prophet Dawalibi. I'm joined today by my friend and co
Unknown:host Jeff, the juice Cohen. For those of you who are new to the meta business podcast, welcome.
Unknown:What we do here is we cover all the major Metaverse stories, industry news topics every
Unknown:single week. But we look at all of them through a business and C suite lens we dissect, we analyze
Unknown:the business implications of everything happening in the metaverse and web three. For our new
Unknown:listeners. Welcome. Thank you guys, if you're new here, if you've been a regular listener of the
Unknown:first four episodes, also, thank you so much. If you haven't already, go leave a review. Tell us
Unknown:how much you love the podcast. It really helps other people to find, especially a new podcast
Unknown:like this one. We really appreciate those reviews and spreading, you know the podcast to your
Unknown:friends, to your colleagues, whoever Jeff, how's it going? How you doing this week? I'm doing
Unknown:great. We just we just recorded the live stream. Normally for you listeners, we record this prior
Unknown:to our live stream which we do every Wednesday night, which as a plug you should check that out.
Unknown:It's pretty interesting. We also put it up on as avadh but I feel like my juices are flowing like I
Unknown:feel in the flow right normally we start this cold and I you know I always feel like I'm kind of a
Unknown:reliever coming out of the bullpen whereas right now, I'm like a starting pitcher in the third
Unknown:inning. Like I'm just you know, through the order one time I'm ready to go. My takes are hot. The
Unknown:juices the juice is gonna be flowing. This is gonna be a what is it? The baseball term of
Unknown:perfect. Are you going to pitch a perfect game here? Is that is that? I think so. I feel like I
Unknown:feel like this is gonna be the best episode yet. I am very excited. I would know you. You're still
Unknown:Paul the Prophet Dawalibi. I think I must be Paul and master of the metaverse. Now Now everyone
Unknown:knows me as the prophet Jeff. And, and and and as the Prophet. You know, I see the future. I just
Unknown:this is what I do, whether it's for gaming and esports on the business of esports, or whether
Unknown:it's for the metaverse, which gaming is a huge part of it. Right. So definitely sticking with the
Unknown:profit. Everyone knows me as the Prophet. And so that's, that's what we're going with here. Now. I
Unknown:want to jump into some news though. Because since you're warm, since it's the third inning, I want
Unknown:these I want these hot tastes right. I want the juice hot takes here. And and the first story,
Unknown:it's a series of stories, right? There's kind of a theme to all these stories. Okay. And I'm going to
Unknown:read the first one, and then I'm going to present to you sort of the big questions I have and then
Unknown:I'm going to show you a few others. Okay. So the first story here is
Unknown:the headline maybe is not completely telling of where I'm going with this, but the headline is jam
Unknown:city unveils blockchain division, and first NFT game champions a session. Okay, so this is jam
Unknown:city. They make mobile games. They're taking the plunge according to this article into NFT games.
Unknown:And they're launching a new blockchain division and their first NFT game called champions a
Unknown:session. Now, the article also mentions that other companies like Ubisoft, which we talked about
Unknown:Zynga
Unknown:GSC gameworld, all these companies have made sort of moves into web three into blockchain based
Unknown:gaming. Okay. And, and so park that for a second,
Unknown:because I think this is interesting in and of itself. But I'm going to show you three or four
Unknown:other articles that are mentioned or alluded to in this one. And the big question I have for you,
Unknown:Jeff, and for everyone listening is there seems to be a theme right with game developers, is they
Unknown:seem to have two major choices when they're looking at blockchain based gaming, right? Do
Unknown:they, if they want to introduce NF T's? As part of their product mix? They seem to have a choice to
Unknown:partner with an existing company in the space or roll their own. And, and the second sort of choice
Unknown:they seem to have is do they embed NF T's and blockchains into existing games? The same way
Unknown:Ubisoft that like we talked about last week, Ubisoft did with Ghost Recon,
Unknown:or do they do they create entirely new games and new divisions to make blockchain based games
Unknown:specifically right so embedding current games, or rollout new games focused on that entirely so that
Unknown:those seem to be the two sort of choices all these companies have. And and so I just want to show
Unknown:these other stories that are alluded to right one here is NFT gaming platform Lego
Unknown:See by Peter Mullenix earns over 54 million, right? So he's creating his own sort of virtual
Unknown:worlds or it's like a London basically recreation, London Metaverse where he's selling land. There's
Unknown:Zynga partnering with forte for blockchain games. And there's this third piece of news that stocker
Unknown:to canceled their NFT plans because they said they were going to introduce NF T's into the game they
Unknown:were already developing,
Unknown:following a bunch of backlash. And then And then finally, there was the article we talked about
Unknown:last week where Ubisoft now says they understand where the NFT hate comes from. Kotaku, who made
Unknown:this headline wrote does not understand shit. So
Unknown:there's the whole spectrum here, right of what I just talked about, which is game developers,
Unknown:either creating new games to incorporate blockchain and NFT into, or they're using their
Unknown:existing games, in which case, we see some backlash. I'm curious how you think about these
Unknown:forces, with all of these stories? And, you know, where what is the right path for game developers?
Unknown:In your mind? This is an interesting one. I mean, and it's one where if you've been listening to all
Unknown:the episodes, you I'll have to give me a call back, because you'll probably immediately say,
Unknown:well, this isn't was this wasn't your take two weeks ago. So I will acknowledge that I think my
Unknown:initial take was it was smart of the of a Ubisoft and my answer to this question two to three weeks
Unknown:ago, would have been putting NF T's into existing games is smarter, because you already have a
Unknown:player base, and you're adding an additional mechanic, you're giving players more, you know,
Unknown:more choices, more optionality, and it's just an easier path to adoption, because there's already a
Unknown:player base, and there's already a community. And it's just, it's just an easier way to go about it.
Unknown:I'm starting to now that we've seen a lot of the negative backlash move towards the the camp of
Unknown:this this, this industry may, it may be a classic kind of innovators dilemma situation where, you
Unknown:know, the what you need in order to get adoption is to attack this as sort of a small niche kind of
Unknown:community and create a new game and a new audience that kind of is tailored to this and wants this
Unknown:sort of experience. So I do think the jam city model of creating a completely new IP may actually
Unknown:be Interestingly enough, the the risk averse strategy and the better strategy.
Unknown:Yeah, that's sort of where the that is how my thesis is changing over the past two weeks with
Unknown:what we've seen, obviously with Ubisoft, and then the stock or to, you know, the fact that they've
Unknown:basically had to you completely walk back putting NF T's in their game. So we've also seen this with
Unknown:discord. I don't know, this happened about a month ago. I don't even know if we covered it in any of
Unknown:our any of our various podcasts, but discord had kind of alluded to, and then a blockchain
Unknown:integration, and then they had to sort of walk that back as well.
Unknown:Yeah, that seems to be the theme here, right like that. If you look at the four stories I talked
Unknown:about are five stories I mentioned here, right? The Jam city one is they're creating entirely new
Unknown:games, right? Zynga, not 100% clear from the story, but they're partnering with forte and it
Unknown:says, According to the article, the aim is to use Zynga as IP for blockchain games. So I think we
Unknown:can safely assume this means creating entirely new games, right? They're not going to put NF T's in
Unknown:Farmville, for example.
Unknown:So you have these, these, these two companies creating entirely new games, right, creating new
Unknown:divisions, new games, new partnerships, specifically for blockchain based games. And then
Unknown:sort of on the other hand, you have stocker too. And they're the developer there, which is GSC Game
Unknown:World. They were already making a game right? This game has been in development for a while. It's a
Unknown:game that people are looking forward to. Then they decided to announce and it was kind of a cringy
Unknown:announcement. I'll admit, I'll just it says in this article, the NFT promo material posted
Unknown:yesterday, was full of jibberish about becoming the first meta humans in the stocker Metaverse,
Unknown:which was going to be achieved by a way of a Metaverse seal bridge.
Unknown:Which,
Unknown:you know, probably someone in marketing row two who had no idea what any of this meant. But the
Unknown:existing games like Ubisoft with Ghost Recon stocker, to
Unknown:in the other case, is part of it. Just the psychology of you have fans of these games,
Unknown:they're expecting one thing, and no one likes change, like no one wants to mix it up.
Unknown:Whether the game's not done yet, or the game's already done, it's just sort of a change in the
Unknown:expectation that people don't like, or do you truly feel like there's some logical backlash
Unknown:against
Unknown:Because to me, it doesn't add up, right? Why if we create a new game, that's a blockchain based game,
Unknown:people play it, they get lots of users, they make lots of money. Everything's good. But if we try
Unknown:and put NF T's in an existing game, like everyone hates it, I think the obvious potential obvious
Unknown:answer is that it's a different audience. It's different people with different motivations. And
Unknown:again, I would love to dig more into that. But I think it is possible that they are just two
Unknown:different audiences, which is kind of why I think that strategy of creating a separate game may make
Unknown:sense. But it is odd, it strikes me that like the whole blockchain gaming community almost needs
Unknown:like a,
Unknown:like a PR consultant, or something like that, where I don't know when this happened, where it
Unknown:became so negative, because if you think about it, all blockchain, all these games are effectively
Unknown:trying to do is create micro transactions where you have digital ownership, and you can, you know,
Unknown:not necessarily play to earn but play Ender and where it's like, Hey, you put out you know, you
Unknown:spent $50, maybe when you go to leave the game in a month, you end up selling them for 20. Like you
Unknown:didn't necessarily make money, but you got something. Whereas normally, if you play Candy
Unknown:Crush, or, you know, pick a different game, empires and puzzles from Zynga, you could spend
Unknown:$500. And if you stopped wanting to play the game, well,
Unknown:there you go, you spent your $500, Zynga has that and you you make you get zero when you leave the
Unknown:game. Imagine if you could, you know, take that $500 that you put in and either turn it into
Unknown:$1,000. Obviously, that's great. Or even if you turn into $200, like if you given up on that
Unknown:hobby, it's better to have $200 at the end and $0. So, in that respect, it seems like who could? Who
Unknown:would argue that having $200 or $1,000, at the end is better than having $0? Like, who would who
Unknown:would take the other side of that argument? So it almost seems like there's a perception problem
Unknown:that some of these games have were or that the whole industry has, sorry, where it's like gamers
Unknown:have now viewed this as kind of an affront to them. And it's sort of like, they're just so
Unknown:against it. I don't know. Where I'd love to get data is your your the point you just made before
Unknown:is like drawing that Venn Diagram of gamers and blockchain based gamers.
Unknown:Right, has to be out there. So it almost to me feels like one of the more important studies that
Unknown:someone could do in the entire industry like it. It's so it's so fundamentally important have a
Unknown:question that I have to imagine that someone like a forte or any of these companies has done market
Unknown:research of like this, the attitudes and opinions of their current players versus blockchain gamers,
Unknown:and what the motivations are and kind of why they're buying the games. Because it's just so
Unknown:fundamental to what we're trying to what all these businesses are trying to do. Like from a pure
Unknown:game or reception standpoint, I think the art we can conclude from the articles we just saw. And
Unknown:the news we just saw is if you try and integrate it into your existing game, this is probably not
Unknown:going to end well. Whether it's a psychological thing, whether it's Venn diagrams that don't
Unknown:intersect, and it's a totally different audience. Like, in some ways, from a business standpoint,
Unknown:the cause is irrelevant, right? There's seems to be a clear pattern of don't inject this in
Unknown:existing games, because people, those gamers are not going to like it. If you want to do this, go
Unknown:create new games. And could I will I do think that seems to be the comment now or the prevailing
Unknown:narrative. Now, there was a couple of quotes that in that, Jay, I thought that JMC article was
Unknown:pretty meaty. So there was a couple quotes that I kind of wanted to dig a little deeper into. One
Unknown:was when Krista wolf in he actually was the former founder of MySpace. So really like was at the
Unknown:beginning of kind of web two, it's now interesting that he's moving his new company into web three.
Unknown:He talked about sort of the user experience, and he there was a quote where he said, you don't,
Unknown:you're not going to have to download all these crazy wallets. And I thought that that sentence
Unknown:was interesting, because it does get a little bit to the heart of maybe one of the potential reasons
Unknown:why gamers currently are shying a little bit away from blockchain gaming. And it's just the user
Unknown:experience. The user experience of these blockchain games currently is just so bad. I know
Unknown:you and I have had some conversations with folks in the blockchain gaming industry. And there's a
Unknown:ton of companies that are out there now that are saying like their mission is to basically create
Unknown:an easier UI kind of onboarding experience user experience for blockchain gaming. But I do think
Unknown:that's an you know, I want I'd love to get your thoughts on that. But it's just I think it is an
Unknown:incredibly fundamental part of all of this, that right now the user experience with Blockchain in
Unknown:general, just not very good. It's a great point. And I do agree, but doesn't that also support
Unknown:like, what I what I just said before, which is the prevailing sort of wisdom seems to be go create
Unknown:new games, because then at least
Unknown:Maybe you can solve for those user experience issues, right? Where it's sort of trying to trying
Unknown:to squeeze it into an existing game with its existing UI and something players are used to.
Unknown:Like, you're shoehorning something that maybe doesn't fit. And it's a little clunky and the
Unknown:clunkier it is, the less likely people are to adopt it. Like, I don't know what the answer is.
Unknown:But it seems like there's enough going against it. It's the psychology, it's maybe the the gamer
Unknown:demographics, and it's maybe the user experience. But it seems to be a lot of cases against trying
Unknown:to integrate into an existing game. Right? Fundamentally, then the question becomes, you
Unknown:know, where, where do we start getting triple A experiences that are blockchain based games?
Unknown:Because that's a much bigger hurdle. I think for Ubisoft or for an Activision Blizzard, or an EA or
Unknown:whoever to get over. Right. I think it was easy for Ubisoft to say, we have a game. Let's put this
Unknown:in here, see how it goes. But to commit resources and people and time and money and all kinds of
Unknown:things, to say we're going to create an entirely new triple A game that's going to be this way that
Unknown:blockchain will be the foundation of
Unknown:that's, you know, that's that's going to be a tough case. internally. I think this actually
Unknown:brings me to the next quote that I sort of highlighted that, that I,
Unknown:you know, kind of thought was interesting. We've touched on this a little bit in the past. And so I
Unknown:want to get your opinion, I think I know the answer your opinion. But it also gets a little bit
Unknown:to what we were just talking about with do you partner or do you try to bring it internally? How
Unknown:do you actually resource this, and I'm paraphrasing a little bit, but it says jam city is
Unknown:betting web three games will have deep gameplay and will be built by actual game developers, not
Unknown:crypto enthusiast. Do you agree with that statement? What's your take on that? I mean,
Unknown:I think if we want this to be successful, it appears like not just blockchain based gaming, if
Unknown:we want the metaverse to be successful, this has to be built by gamers and gaming companies. I
Unknown:don't know. Maybe that's not such a hot take. But like this can't be built by crypto companies like
Unknown:that. Because I think it has to be fun first, gaming first, you know, leisure first, whatever it
Unknown:is, there has to be a component that hooks you that is that is fun.
Unknown:Regardless of you know how we're defining this or what we're calling it, whether it's a blockchain
Unknown:based game, or it's a Metaverse proper. So I'm definitely on the side of the game developers and
Unknown:I agree there. I don't know if you do feel that way. Or, I mean, I sort of I actually, I think we
Unknown:we've made this point in prior episodes, but I I definitely 100% Agree.
Unknown:The only thing is like with the Zynga forte, I did see in that article, they talked about Forte's,
Unknown:like partner with 200 Plus studios. I think right now, there's a lot of crypto knowledge and actual
Unknown:like, know how that needs to be brought either brought in internally into game studios, or out or
Unknown:outsourced in some way. I do agree, like the fundamental building of the game needs to be done
Unknown:by game developers, but the nuts and bolts and the pipes. You know, if you're someone who doesn't
Unknown:understand crypto or doesn't know how to build those things, like I don't think you can. It's
Unknown:sort of a prerequisite. I mean, this there's a great segue here necessary but not sufficient, if
Unknown:you will, I want to tie this into the next story, because I think they segue perfectly. And, and the
Unknown:headline here is also really good. It's gaming's best existential threat of the year, and fts. And
Unknown:so the picture they use as Ubisoft here, which is not too flattering, but there's nothing the
Unknown:headline sort of explains this article that basically NF T's are a threat to gaming, because
Unknown:fundamentally, they're no different than just microtransactions. And you know, you get something
Unknown:useless. And
Unknown:people are going to focus on, you know, playing to earn and playing to, you know, make money or get
Unknown:an NFT as opposed to playing to play. You know, it says here, I'll just quote this. It says when it
Unknown:comes to video games, NF T's are incompatible with decades of game design, they would replace the key
Unknown:verb of play with a new key verb of invest, and that could diminish games as we know them.
Unknown:Do you agree with that one?
Unknown:Well, I actually think that it sort of sums up the narrative and the current. I mean, Jeff Grubb
Unknown:wrote that for games beat. I mean, he's a pretty well respected games journalist, and I think he
Unknown:does a great job. Something like that sentence actually sums up pretty well. The way I think a
Unknown:lot of core gamers view. The blockchain gaming and NF t's the challenge for the industry is going to
Unknown:be how do we create games that don't fit that narrative and are fun and bring people in? And I
Unknown:do think like I said before, it's going to be in this sort of classic Innovators Dilemma model
Unknown:where you sort of create a
Unknown:You you build a niche and sort of a minimum viable product that kind of takes a small niche of the
Unknown:market and then grows from there. I think that that probably will be how it happens.
Unknown:Yeah, I'm curious to hear what you think. I love the point you made earlier about, there's almost
Unknown:like a PR problem. Right. And I feel like, that's sort of the heart of an article like this
Unknown:existing, which is, and, you know, it's a good article, I don't necessarily disagree with the
Unknown:conclusion. I just think there's more nuance to this than just NF T's are going to destroy gaming,
Unknown:right, that I totally disagree with. I almost feel like
Unknown:there needs to be two classes of NF T's that we're lumping all NF T's in together. And fundamentally,
Unknown:that's causing some of these problems that I think that's causing some of the confusion. It's causing
Unknown:some of the backlash because, you know, an NFT of a, an ape wearing a hat. Right? That's, it has, it
Unknown:has no value really, right, other than some value that people have ascribed to it, because it's
Unknown:scarce in some way or whatever, right? Like, it has no utility, that's for sure. It's just the
Unknown:collectible, it exists to exist. And if someone thinks it's valuable, and will pay for it great,
Unknown:right, but it serves no purpose, and it has no utility. I think that needs to be in a completely
Unknown:separate category. From a PR standpoint, marketing standpoint, business standpoint, from a class of
Unknown:NF T's that have utility, right? It gives me something, it's it provides something beyond just
Unknown:whatever the certificate of authenticity is, right? It's not just the collectible. And in
Unknown:gaming, that's so obvious, right? That's in game, cosmetics, or items, or whatever it is, like
Unknown:there's some in game utility. But I think part of the problem is, it's what the utility is, is not
Unknown:communicated. And everyone just sort of has this blanket kind of view on NF T's in that first
Unknown:category, right? Like the pure collectible, it's totally useless. And that's what this article
Unknown:misses in my mind. It's, there are a class of NF T's that have some utility, that may resonate with
Unknown:gamers and may be valuable to gamers.
Unknown:And I don't think it's the threat. He says it is right not long term, if we can communicate that. I
Unknown:do agree. I just think, again, it's like this PR issue where it becomes I think people are viewing
Unknown:this as a speculative sort of speculative, speculative assets and kind of investments versus
Unknown:Hey, you know, like you said, I want to I want to get this gun in the game because it has utility,
Unknown:or because it's a cool cosmetic not Well, I want to get this gun in the game, because I think I can
Unknown:go on open sea and sell it for 10x To some, you know, person sitting down the road like that. I
Unknown:think those two things are not the same, like those two motivations are not the same. And I
Unknown:think, unfortunately, a lot of people who are into in this sphere, and these early adopters are kind
Unknown:of these opportunists that are looking at everything saying, Hey, how can I go make money at
Unknown:why I'm buying this? Because I think it's going to be worth more not because I think it has value to
Unknown:me, or is fun to play with, which I think is a problem or will become a problem overtime, Agreed?
Unknown:Agreed. You know, the theme of this episode, I want to say is almost like competing forces. And I
Unknown:think this next story, two stories we'll call that fall into this sort of competing forces. And so
Unknown:the first headline here is this is two pieces of Chinese news on the metaverse front. And the
Unknown:headline here is Tencent back to mobile game maker to invest 200 million in NF T's. So this is
Unknown:voodoo. They're They're owned or backed by Tencent, they're going to invest more than $200
Unknown:million to start a blockchain division that will obviously offer NF T's. They're going to compete
Unknown:with CRR, which is a French based NFT fantasy sports platform. They're going to be competing
Unknown:with Ubisoft, obviously, they mentioned in this article, they're known for their mobile titles,
Unknown:helix jumped and paper.io. And they're going to integrate a system that rewards players with
Unknown:digital assets as they improve within a game. So you know, nothing terribly differentiated here.
Unknown:The company has a $1.9 billion valuation. And Tencent owns a minor minority stake. So
Unknown:sorry, go ahead. I was used, I guess. This is going to take us a little bit away from the topic.
Unknown:So I'll just go on this tangent then we'll come back. But to me like a company like voodoo, which
Unknown:their games are hyper casual games, right? They are Flash games, you doubt you basically don't
Unknown:even download them and you put you know, it's like Bubble Pop. You play it for like, seven minutes
Unknown:and then you delete it, essentially, like I think the day to retention is like less than 1% or
Unknown:something like that on these hyper casual games. Tell me there you couldn't think of a worse type
Unknown:of company to do NF T's it's like, if I played seven minutes why
Unknown:Do I want to own an NF T of anything in the game? It's literally something you do on the subway for
Unknown:seven minutes, and then you forget about it the rest of your life, like, you're gonna own an NF.
Unknown:Just like NF T, the NF T's make sense in something where it's like a absolute passion or a hobby or
Unknown:something where it's like, an almost an obsession, like, wow, you know, like people play WoW, for 15
Unknown:years, I could see you wanting to invest in an asset or invest in own something that's like a
Unknown:digital collectible. It's like, I've played WoW, for 15 years, they just came out with this cool
Unknown:skin. I want to own it. I want to look at it every day or every week or whatever. It's my passion.
Unknown:game you play for seven minutes on the subway like, like bubble pop or brick breaker like, what
Unknown:NFT? Are you gonna? What does that do for this company? It just, I think it's downright idiotic.
Unknown:But I know. That wasn't the point. Oh, it's good. All that I want to can I make the counter
Unknown:argument? Maybe? I don't know. I don't know how good of a counter argument that is. But if you
Unknown:only play a game for seven minutes, right? What is your biggest challenge as a game developer as the
Unknown:owner of the game? Retention? Getting people to play?
Unknown:them? Yeah, like adding the NFT in the mix means instead of playing seven minutes, they play 15
Unknown:minutes.
Unknown:I doubt
Unknown:I see your point. But no, my answer.
Unknown:It makes two minutes because they're like, oh my god, I have to download like an NF T wallet now to
Unknown:play this game like know, oops, here my stops up like I'm out.
Unknown:I don't know. So your question was about China, right? Or do you want to try so there's this
Unknown:article where 10 cents, this 10 cent back company is going to invest $200 million to start a
Unknown:blockchain division. And then on the other hand, you have again, keep in mind Vudu is Tencent back.
Unknown:So which is Tencent being a Chinese company. And then you have this story out of the South China
Unknown:Morning Post where the headline is, let me put this up here. Chinese state television warns
Unknown:against blockchain based play to earn games as popularity searches. The CCTV reports said that
Unknown:pay to play blockchain games should be treated with caution. And that many are a scam. They
Unknown:actually use the word scam. Played around games have become one of the hottest tech trends this
Unknown:year with developers seeing their valuations mushroom. So this is, you know, state owned TV.
Unknown:Right. So this is the government speaking basically. But China Central Television, basically
Unknown:firing warning shots at play to earn games at blockchain based games. And given what everything
Unknown:else that's happening in China and their crackdown on gaming in general, not just blockchain based
Unknown:gaming, but gaming in general. You know, are we seeing again, competing forces, right, we're
Unknown:Tencent.
Unknown:They're a minority shareholder, but they're still have some say, I'm sure right. 10 cents, a huge
Unknown:backer of voodoo and things like that.
Unknown:Where, you know, on one hand, you have 10 cent back companies, getting into NF T's and blockchain
Unknown:based gaming in a big way. And on the other hand, you have China going, Hey, maybe this feels like
Unknown:there might be a crackdown. I'm curious how you think blockchain based gaming plays out in China
Unknown:over the next few months, even right? Forget about longer term than that.
Unknown:Ah, it's a lot of different directions to go and that I'm in one I would say, I guess Tencent in
Unknown:the Chinese government, clearly don't always see eye to eye. In fact, it seems increasingly they're
Unknown:kind of at loggerheads. So maybe it shouldn't be that so maybe it's because maybe it's as a cause
Unknown:and effect thing. Literally, maybe maybe, because 10 cents investing this now, the government is
Unknown:sort of putting out this morning. I did. You know, also I was gonna make the joke. It's sort of like
Unknown:a, even a broken clock is right? Twice a day, where, you know, Chinese government has done all
Unknown:these warnings. They're, they're banning kids from playing games are too violent. You know, they're
Unknown:sort of 20 years behind, kind of where we are in the zeitgeist here in the US, they're still
Unknown:talking about like, oh, kids shouldn't play games, they're so bad.
Unknown:But in this case, they may actually be right in the sense of there. There are a lot of scams, I
Unknown:think going on in blockchain gaming and there there shouldn't people should generally be
Unknown:cautious about this space. Because, you know, it's it's a nascent industry and there are some, some
Unknown:opportunists I guess will say that way.
Unknown:In China also has always been against Bitcoin to some extent or blockchain to some extent, I think,
Unknown:as a autocratic state. I mean, the very nature of something being decentralized is obviously a risk
Unknown:to them. The interesting thing is it almost to some extent makes
Unknown:Chinese gamers may be more interested in blockchain gaming, if, if it is possible for them
Unknown:to get around sort of the the state.
Unknown:The state run enterprises, I don't know how, you know, with the internet there and the Great
Unknown:Firewall like I don't know, if you are able to access some of these games.
Unknown:It might be harder for them for China to block some of these things than it would be a non
Unknown:decentralized platform.
Unknown:though, I know that was a lot of word salad, but I think there was some interesting ideas. That's a
Unknown:great point, right? In some ways, it may be the way to move assets like this outside of China,
Unknown:right. Like, it's the, it's the, it's an interesting sort of workaround, and maybe all the
Unknown:more reason they want, they will crack down on it harder than maybe gaming broadly, right. Like, I
Unknown:think, I think if what you're saying is ends up playing out and is true.
Unknown:This, this becomes potentially quite a severe crackdown there that I wouldn't be surprised we
Unknown:see. And, and it's only going to take, you know, a couple of, of bad, you know, news around scams or
Unknown:people getting sort of cheated out of money. And I think they'll use that to run with it, and use
Unknown:that as the reason why they have to sort of crack down on everything. But it's one of these things
Unknown:where I think we underestimated the influence of the Chinese government in the gaming space, right?
Unknown:More broadly. And, and I'm not going to make the same mistake a second time, right? Like, when you
Unknown:start hearing rumors like this, and rumblings like this, that, that they're looking at it or that
Unknown:there are reports or like my I go directly now to Okay, we're gonna see a crackdown, we're gonna see
Unknown:some kind of, you know, rules and limits, and I wouldn't want to be investing in those developers
Unknown:there or, you know, I wouldn't want to be backing those those companies there. I just wouldn't. It's
Unknown:just too risky when you start to hear things like this.
Unknown:I'm sure it's something we're gonna come back to, because I'm sure we're going to get more news on
Unknown:this. But, you know, the point you made Jeff about dislike the decentralized nature of blockchain,
Unknown:being part of the attraction, again, kind of a great segue into the last thing I wanted to touch
Unknown:on this week. And this we said this was going live, we just like we literally called it last
Unknown:week, we said we were going to see a lot more stories like this. And the headline here is
Unknown:polygon teams up with Reddit co founder for $200 million web three gaming fund. So this is Alexis
Unknown:Ohanian, who's the founder, co founder of Reddit teamed up with the team behind polygon to raise
Unknown:200 million to target the development of web three gaming and social media projects. Ohanian believes
Unknown:that as web three grows, gaming and social media present the biggest opportunities for growth. I
Unknown:think this I'm tying this to the last story in the sense that
Unknown:what's interesting to me here is where Alexis Ohanian is coming from right Reddit, while a
Unknown:centralized platform, right runs on Reddit servers and whatever else and it is some ways a very
Unknown:democratic social media platform, right? People post stories, they get up voted by the community,
Unknown:that's what shows up the highest. Right? Like there's very little Reddit kind of intervention in
Unknown:the Reddit community. It's moderated by, you know, the individuals themselves.
Unknown:Is he not the perfect guy to be doing a, you know, Blockchain based gaming web three gaming funds? Is
Unknown:this maybe more exciting than last week's 100 million dollar fund? In your mind? Yeah, I mean,
Unknown:it does. It does certainly fit his his ethos. So I do you know, like, where people when people kind
Unknown:of put their money where their mouth is, I think I made this joke last week, but it still applies
Unknown:every time I see one of these things. I'm like, Oh, my God, why are we not starting a blockchain
Unknown:game? Like, just the amount of money that is currently in the system looking for x, or for
Unknown:investments in this space? Is it just hard to believe, like I people always equated to the
Unknown:beginning of kind of mobile and free to play. But I have to think we're years ahead of where, you
Unknown:know, we are currently, like where we are today, in terms of what's actually in the industry versus
Unknown:the amount of money chasing what the industry could become, has to be imbalanced relative to
Unknown:where it was in mobile. Like, I think, when, as I understand this was kind of I was earlier in my
Unknown:career. I think I was in college, though. But when free to play, mobile was becoming popular, most
Unknown:people were pretty skeptical. Like, I think it was very much like yeah, this isn't gonna work like
Unknown:social games. Nobody cares. Yep. Whereas now, people, people are jumping in with two feet, like
Unknown:even people who are skeptics are still like, hey, well, I don't know, I just raised 200 million to
Unknown:invest in it. You know, like, it feels like nobody, nobody is skeptical, which is always a
Unknown:little bit of a scary place to be where everybody's bought in that something's the future.
Unknown:But it just the amount of money here is staggering. And you're gonna see a ton of
Unknown:companies being built just because when you have this sheer amount of investment capital being
Unknown:driven into a space and the mind power and brainpower that is that is currently moving, and
Unknown:we're seeing in real time if you follow people on Twitter, or you know, listen, and look, we just
Unknown:started this podcast a month ago. So there are plenty of people that are smart, that are looking
Unknown:that are in games in esports in this business that are moving their focus and shifting their focus
Unknown:into this,
Unknown:that it's going to be
Unknown:And then there was a quote, I guess I'll maybe end on this. I mean, Krista Wolf, who, again, coming
Unknown:back to that jam city article, which I really liked that article, he said, mobile was the last
Unknown:big platform change in computing. blockchain will be bigger than that. And I think that that, to me,
Unknown:it's like if there's a quote, to summarize all this, it's like, that sort of hits it on the head.
Unknown:I can't think of a better way to wrap up this week's podcast, Jeff, and I'm sure we're gonna see
Unknown:more of these funds. No question. So it's a it's definitely a huge development, love the the money
Unknown:flowing into the space. I agree, we probably do need to go create a game game development company
Unknown:making blockchain based games. But you know, for our listeners, guys, thank you for tuning in this
Unknown:week. Just a reminder to go subscribe to the podcast. If you enjoy it, hit the subscribe button
Unknown:on wherever you get it. So if it's Apple podcast, Google Play Spotify, wherever. If you watch this
Unknown:on YouTube, subscribe to the YouTube channel. But if you enjoy the content, just leave a review, or
Unknown:send some feedback, let us know how you're enjoying it. Or if you think we should be doing
Unknown:things different. We really want to make this for you guys and make it valuable to everyone who
Unknown:listens and spends this half hour with us. So thank you guys, for tuning in. And, Jeff, thank
Unknown:you, and we will see you all next week. Thank you. Yes. Thanks for joining us here on meta business.
Unknown:Make sure to subscribe to this podcast everywhere you get your podcasts, leave a five star review
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