Crypto Gaming Challenges: Sky Mavis Co-Founder Discusses Biggest Hurdles & Solutions

2 min read

Sky Mavis co-founder reveals crypto gaming’s biggest hurdles

An intriguing discussion is emerging at the Game Developers Conference, particularly regarding the evolving perceptions of Axie Infinity, a 2D creature-battling game that has faced criticism for its simplistic and repetitive gameplay mechanics. Recent conversations indicate that both gamers and developers are reassessing their views, leading to a more favorable attitude towards the game than it has enjoyed in recent years.

### Shifting Perspectives on Axie Infinity

In the past, developers venturing into the crypto gaming scene aimed to distance themselves from Axie Infinity as they sought to redefine the genre. Their goal was to attract mainstream gamers from popular titles like Fortnite, League of Legends, and Call of Duty, emphasizing that crypto gaming could offer the same experiences as traditional video games, alongside the perceived advantages of true asset ownership. However, the landscape has shifted significantly.

### Challenges Faced by High-Budget Titles

AAA games such as Deadrop and Shrapnel have encountered various controversies. Deadrop was completely shut down due to financial issues and a scandal involving one of its founders, while Shrapnel has been embroiled in internal disputes, including legal actions against the former CEO. What was once a buzz of excitement around Shrapnel has faded, leaving many crypto gaming enthusiasts looking forward to only a handful of higher-budget projects like Off The Grid, Star Atlas, and Wildcard.

### Growing Interest in Mobile Gaming

Despite setbacks in larger projects, there remains a strong interest in advancing mobile gaming and finding a balance between gameplay and financial elements. The Ronin network has gained traction, partly due to the pixelated MMORPG, Pixels, and the original Axie game has experienced a resurgence in unique active wallets (UAWs) since March of the previous year. Recent data indicates that Axie has recorded 160,000 transactions and 100,000 unique active wallets in a single day, positioning it among the top 15 games by UAWs, according to DappRadar. In comparison, Pixels has achieved even greater success with over 200,000 UAWs and transactions, making it the fifth-largest crypto game.

### Insights from Ronin’s Co-Founder

During an interview at GDC held at the Four Seasons hotel, Ronin co-founder Aleksander Larsen discussed the complex nature of succeeding in the blockchain gaming arena. He remarked on the inherent difficulties of creating blockchain games, noting that even established titles like Axie have faced challenges in replicating the original’s success. Larsen emphasized that developers must make strategic choices between graphics, gameplay, and financial economy, asserting that excelling in all three areas is currently unattainable for any single game.

### The Importance of Gameplay and Economy

The team behind Axie Infinity has prioritized gameplay and economic structure, believing these elements are crucial for a successful crypto game. While appealing graphics can enhance the experience, they are secondary to the financial dynamics that attract many players, such as the ability to trade in-game items. Recent research from Game7 highlights a trend toward indie and mobile games, with a growing number of crypto games falling into the “small indie” category, which analysts attribute to a significant decline in venture capital funding since the crypto boom of 2021 and 2022.

### The Impact of Declining Funding

Larsen pointed out that the reduction in venture capital has posed challenges, stating, “VC money has dried up,” and mentioned the lingering expectations from investors who are still holding onto NFTs acquired during the peak market. Despite these challenges, Sky Mavis has managed to navigate the turbulence, although the values of its tokens—RON, SLP, and AXS—remain significantly lower than their all-time highs. The Ronin Wallet has surpassed 10 million downloads, yet the company downsized its workforce by 24% last year, as announced by CEO Nguyen Thanh Trung.

### Addressing Pay-to-Win Concerns

Larsen acknowledged the issues surrounding pay-to-win mechanics in games, which can create a sense of exploitation among players. He noted that blockchain games often reflect real-world economic disparities, where wealthier players, or “whales,” can dominate the game, leaving less affluent players with minimal chances for advancement. However, he believes it is possible to incorporate skill-based gameplay while offering purchasable items that do not influence game balance.

### Leveraging Experience for Future Development

Larsen concluded by expressing that the lessons learned from the past seven years are being applied to the development of the new Axie game, building on the insights gained from collaborating with other game studios.

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