A16z’s $40M Investment in CCP Games Meets Lukewarm Reception from Gamers, but Why?

• CCP Games raised $40 million to make a AAA title. 
• High-profile investors a16z, Nexon, and more participated in the financing round.
• Crypto Twitter and gamers are not impressed with the announcement. 

Web3 gaming is one of the most compelling use cases in the crypto industry. It has certainly caught the attention of AAA gaming companies like CCP Games, who flock to develop in the emerging field.

However, gamers are growing skeptical about what these developments offer despite the increasing institutional interest. Terms like “Web3” and “blockchain” are becoming gimmicks to attract investment, and users are looking for substance beyond the hype.

This is evident in the recent muted response to CCP Games’ latest $40 million investment from top venture capitalists. 

Using Web3 for Investments

On March 21, MMO developer CCP Games raised $40 million in a funding round led by venture capitalist Andreessen Horowitz (a16z). The game studio stated that it would use the capital to scale its research-and-development team to create a new Web3 MMO game set within the universe of its hit title, EVE Online. 

The developer shared that its upcoming project would feature key game systems on-chain and leverage smart contracts to “empower players in new ways” with “truly open third-party development.” 

However, that wasn’t enough to pique gamers’ interest. 

Gamers React

CCP Games’ announcement struggled to hit it off with gamers. Many weren’t keen on a popular traditional gaming company integrating blockchain technology. Users on Twitter shared their concerns, claiming that the new title does not offer anything new.

People have been exchanging value, game items, third party content, and playing to earn on Steam since forever.

If further integration across games was a good idea, that was also possible thus would have been implemented.

The sole addition of web3 is immutability. Its not much.

— Nazım ‘Olmeca Gold’ Adaklı (@nazimadakli) March 21, 2023

Some bluntly expressed the view that being “Web3” doesn’t make a game fun. The proposed benefits from the technology, such as Play-to-Earn, digital assets, and more, are already possible with Web2 technology. 

Several fans noted that players have been exchanging game items and creating content on traditional gaming platforms for a long time. 

However, others touted the studio’s move to Web3 as revolutionary. Fans were excited to see the 20-year-old MMO leader incorporating NFTs and blockchain technology. 

What do Gamers Want? 

Much of the criticism can be attributed to CCP Games’ marketing, which focused more on highlighting their blockchain integration than what the game would offer. 

Like most of the web3 ecosystem (NFTs, coins), successful web3 games relied on FOMO and Ponzi mechanics. Users came to get in early and earn. Not to have a fun experience. Once the well dries up, those games go into winter like most other web3 elements.

— Nazım ‘Olmeca Gold’ Adaklı (@nazimadakli) March 21, 2023

“Web3”, “Play-to-Earn,” “Blockchain,” “Value Exchange,” “True Ownership,” and similar terminology is not resonating with much of the gaming public. Marketing for blockchain games tends to emphasize these terms over the actual concept of the game. This leads to companies struggling to comprehend what gamers want.

On the Flipside

• Silicon Valley Bank provides banking services to venture capital firm Andreessen Horowitz (a16z). The bank recently went through a chaotic series of events. 

Why You Should Care

Traditional gaming companies incorporating blockchain technology often gain hype among investors; however, they’re not as effective with customers. Top gaming studios are blurring the lines between investment vehicles and fun when they migrate to Web3, misinterpreting what gamers need.

Read how Web3 gaming is still waiting for its breakthrough moment:

Investors Poured $4.49B into Web3 Gaming, but Industry Still Struggles to Attract Players – DailyCoin

Animoca Brands launched a new NFT wallet:

Animoca Brands Rolls Out NFT Wallet Gryfyn in Joint Venture

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• Source: https://dailycoin.com/a16z-ccp-investment-lukewarm-reception/