The gaming industry is undergoing a creative shift, driven not just by cutting-edge graphics but by the rise in user-generated content (UGC).
Games like Roblox and Minecraft are already incorporating UGC, with tools for players to create, trade, and even sell in-game items. Creators on Roblox alone earned a substantial US$525 million in 2021.
As the gaming industry embraces UGC, a new dimension also emerges where players are not just creators but also contributors to a game’s ecosystem. This evolution signifies a distinctive shift in the gaming world, where community input and creativity become integral to a game’s direction.
Unlocking the power of user-generated content
While the gaming industry has achieved significant success over the years, it now faces a paradox of prosperity: innovation is beginning to stagnate. Game studios, in their quest for control, have created a development ecosystem that is largely “walled off” from its most vital component – the players.
This has led to a growing concern regarding a decline in innovation emanating from game studios. The lack of ideas poses a significant challenge, as there is a limit to the “newness” that can be injected into graphics, storylines, and game modes each year.
The constant demand for fresh content creates an extremely challenging environment for game studios, leading to concerns about team burnout and pressure from stakeholders to generate more revenue.
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Building on its success, Roblox, with over 70 million players, is harnessing the potential of generative AI to revolutionise the gaming industry with advanced UGC experiences. Dan Sturman, CTO of Roblox, emphasises the community’s vital role, “We envision the community as a force multiplier for generative AI, creating an ecosystem that our creators and users can leverage to create content and tools more effectively.”
Enriching the creative gaming experience
In the broader context of UGC, it has successfully demonstrated strong brand engagement for multinational companies. For example, the “IKEA At Mine” campaign significantly boosted the company’s social media engagement and 3.54x higher conversion rate by inviting customers to share content featuring IKEA products in their homes.
In the mobile industry, Apple’s “Shot On iPhone” campaign garnered billions of impressions and significantly positive social media feedback, showcasing the power of UGC in enhancing fan engagement.
For gaming, one example is led by a team of BAFTA and Emmy Award-winning veterans incorporating the UGC model in Shrapnel, a moddable shooter title on the Epic Games store. Its focus on player-created content (PCC) extends beyond character cosmetics or avatars, expanding even to entire playable maps. In this model, players can purchase land, alter the terrain as custom maps, and engage in collaborative decision-making to vote on the community’s favourite creations.
“The creator economy is accelerating, moving us towards a world where individuals can create careers within video games. This shift is not just about bringing enjoyment to others but also about offering creators a means to earn through their player-created content in video games, providing a new stage for the next generation of creator rockstars,” says Don Norbury, CTO and Studio Head of Shrapnel.
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This benefit to players and developers is significant, as it not only enriches the in-game experience but seamlessly integrates gamers, creators, and curators. It intricately weaves gameplay and strategy within the community for a more creative and dynamic experience. This kind of approach bolsters community engagement by enabling players to create and trade content, thereby increasing player retention.
Toward a new epoch of player ownership
In the dynamic evolution of the gaming industry, projected to reach US$269 billion by 2025, how can users truly “own” the content they create? A new horizon emerges with the integration of blockchain technology into the creator economy, enabling UGC to be tracked as authentic digital assets that players can directly own and control.
It ensures verifiable ownership and traceability of digital content, both in-game and within the broader creator economy. For instance, games such as Fableborne and Shrapnel are being powered by the customisable Avalanche Subnet, enabling users to generate, own, play, and transfer in-game items, all transparently recorded on the public blockchain.
For indie startups, studios, and entrepreneurs in the gaming industry, integrating blockchain into the gaming ecosystem is not just about keeping pace with technological advancements; it’s a strategic decision to cultivate a more dynamic, engaged, and sustainable gaming community.
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