Crash and Reshape: Drawing Lessons from the History of the Gaming Industry and Looking Forward to the Future of NFTs

Drawing lessons from gaming industry history and the future of NFTs.

2) Strong companies develop high-quality projects to boost market confidence

Nintendo and SEGA also did a great job, using multiple excellent games as their main products to restore market confidence. The IPs that we are familiar with today were born from the ruins at that time:

Examples:

Super Mario Bros: This game became the flagship game for the NES and achieved tremendous success worldwide. It created a new standard for side-scrolling platform games.

The Legend of Zelda: This game is an open-world adventure game. It became one of Nintendo’s most popular game series, and laid the foundation for the subsequent Zelda series.

3) New technology, new experiences, and new players

Activision and EA were also established around 1985, but they chose a new path and technical development standards, which was the blank market of personal computers. They released the first generation of PC games, which aroused strong interest in games among many new consumers and led to the development of sub-branches in the industry:

Examples:

“The Bard’s Tale”: Role-playing games enlightenment.

“King’s Quest”: Paved the way for PC adventure games.

“SimCity”: The first milestone in simulation game genre.

4) Emergence of rating media

With the rise of game magazines in the 90s and the Internet in 2000, game companies tended to let media outlets with professional taste test the game first and give evaluations. The emergence of evaluations greatly eliminated the information asymmetry between products and consumers, making junk products nowhere to hide.

Examples:

IGN and Gamespot have become the objects that all game companies must publicize to.

Summary:

Nintendo and other companies saved the industry through a series of subjective operations, promoted benign competition, and became prominent giants in their respective fields. The current gaming industry has a market size of tens of billions of dollars.

From here, we can draw some valuable conclusions:

1) NFT platform companies should take responsibility for industry standardization

If the old forces are still condoning the generation of junk content and cannot select quality content for support, new forces will definitely take their place.

2) NFT new platforms will have integrated production and research capabilities

As a result of being driven by quality projects, they will ban the contracts of competitors and gradually eat away at their market share.

3) NFT new platforms will use new technologies such as AI/AR/VR to innovate

Using new media, new experiences will bring new players and create new market dividend opportunities to expand the battlefield to new territories and capture incremental territories.

4) NFT new platforms will promote professional project due diligence and KOL word-of-mouth ratings

During the project due diligence process, key work such as real-name registration, background checks, art asset previews, and contract audits needs to be carried out carefully.

Although predecessors have given standard answers, the industry is dynamically developing, and the fundamentals of predecessors may not necessarily be our starting conditions. We have to recognize that we still face many problems that the gaming industry did not have before.

1) Industry regulation is still inadequate

There are still huge differences in mainstream circles, and top-level entrepreneurs in the industry should step up to promote the integration of mainstream worlds;

2) Payment and wallet difficulties

This is mainly limited by regulation, which is essentially a continuation of problem 2;

3) Unclear business models

I think the existing issuance and secondary royalty models are reasonable business models and should be respected. This is the core driving force for artists to leave Web2 and join Web3, and we cannot throw the baby out with the bathwater. Similarly, issuing more NFTs does not necessarily dilute hodlers. Project parties can make distinctions based on rights and rarity, community status levels, and pricing, among other aspects, and different series themes, non-fungible designs, and experiences can sustainably issue NFTs without bringing obvious dilution problems. There are cases of this in trendy play and sneakers.

Therefore, before we wait for new platform companies to exert their efforts, we should further observe the progress of encryption industry regulation and payment compliance issues, and once the time is ripe, the next wave of truly magnificent waves will usher in a new industry pattern with huge opportunities for wealth creation.

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