Announcement: https://twitter.com/0xferg/status/1588548804726255617
TL;DR: The entire business model of Web3 gaming is under threat thanks to smart contracts avoiding royalties (basically how games are going to monetize). GameStop now has a live, in-production solution for games to guarantee royalties.
Hi everyone, really excited to share a critical piece of infrastructure for GameStop and Immutable winning the gaming race. We spend enormous periods of time thinking about how to design the best protocol and marketplace for games – and I want to keep you all in the loop with the product decisions we are making.
The context:
In case you’ve missed, over the last month some serious changes have occurred to royalties.
- Many marketplaces (X2Y2, SudoSwap) have gained market share by routing around royalties. This means creators and games don’t receive the royalties they initially established their business models on.
- Major marketplaces like MagicEden have been forced to take their royalties to 0, because of this competitive pressure.
This is awful for gaming, and mainstream adoption of Web3. Creators and games should be able to monetize via royalties, and it’s fundamentally more player aligned: make money when players trade, rather than selling things up-front.
Immutable is the only protocol live today where you can have enforceable protocol royalties. We’re extending this to anyone on Ethereum with our latest announcement.
What does this mean / why does this matter?
- Immutable Royalties means mainstream games who want can build on GameStop NFT can do so with the guarantees that they will receive guaranteed royalties – live today
- Marketplaces like GameStop can guarantee better monetization in the long-run by receiving permanent creator-royalties on created assets. This also opens up brand new forms of monetization for marketplaces with strong distribution like GME, which can be taken anywhere.