"Black Myth: Wukong" First Investor Won’t Invest in Web3, Believing Game Itself Should Be the Focus

The Phenomenon of “Black Myth: Wukong”

The debut of China’s first homegrown AAA game, “Black Myth: Wukong”, has sparked an unprecedented level of excitement in the gaming community.

Since its launch on August 20, 2024, the game has shattered records, surpassing 18 million copies sold and generating over $867million in revenue.

The game's success is highlights by its impressive peak of over 1.3 million concurrent players within the first 24 hours, establishing it as the most talked-about AAA title of the year.

This phenomenon highlights the immense potential of the Chinese gaming market and represents a significant milestone for the industry.

Daniel Wu’s Investment Perspective

Daniel Wu, the CEO of Hero Games and the initial investor in Game Science, the studio behind “Black Myth: Wukong”, has become a focal point of discussion following his recent interview.

Daniel Wu is the initial investor of Game Science, the studio behind the highly anticipated video game "Black Myth: Wukong."

Wu, a prominent figure in China's gaming investment sector, made headlines by declaring his strong stance against investing in Web3 games.

According to Wu, his investment philosophy is deeply rooted in a passion for games, which he believes is essential for creating exceptional gaming experiences.

Wu stated,

"I believe that at any time, the game itself should be the main focus."

He further emphasises that,

"I have seen many game industry entrepreneurs shift to Web3; those are the people I would never invest in. If they are not passionate about games, how can they create good games?"

Wu’s critique is particularly directed at those who, in his view, lack a true dedication to the craft and are driven by the allure of new technologies rather than a deep-seated enthusiasm for games.

His remarks have sparked significant debate within the Web3 community, with figures like Gabby Dizon, founder of Yield Guild Games, dismissing Wu's views as "silly," arguing that many Web3 developers are indeed passionate about innovation in gaming.

Focus on Game Quality and Efficiency

Wu's commentary also highlights his emphasis on the fundamentals of game development.

He argues that the core of successful game creation lies in the ability to produce high-quality content efficiently.

Wu illustrated this with his stance on Vision Pro games, stating,

"We don’t need to make Vision Pro games because our daily struggle is to enhance our content production capabilities. It’s about quality and efficiency."

He contrasts this with the notion that early adoption of new technologies does not necessarily equate to superior content, citing the historical dominance of Tencent in the mobile gaming market as an example of how quality and efficiency ultimately prevail.

Wu advises focusing on aspects that larger companies might overlook or lack the organisational efficiency to address, rather than being swayed by the latest technological trends.

The Web3 Gaming Dilemma

The success of “Black Myth: Wukong” brings into sharp relief the ongoing challenges faced by Web3 games and the GameFi sector.

Despite significant investments and a surge in funding—amounting to $1.1 billion in the second quarter of 2024, a 314% increase from the previous quarter—Web3 games have yet to deliver a standout hit on par with “Black Myth: Wukong”.

Many Web3 projects have struggled with flaws in their economic models and insufficient gameplay quality.

Critics argue that these games often prioritise financial mechanisms over engaging content, perpetuating a cycle of "mining, withdrawing, and selling" that fails to sustain long-term player engagement.

Diverse Opinions on Blockchain Integration

The debate over integrating blockchain into gaming remains polarised.

On one side, Microsoft Gaming CEO Phil Spencer has been outspoken against the use of NFTs and blockchain in games, criticising play-to-earn models as exploitative.

Under his leadership, Mojang Studios updated its guidelines to ban NFTs and blockchain elements in “Minecraft”.

On the other hand, companies like Square Enix and Nexon are exploring blockchain technology, with Nexon recently announcing a Web3 game based on its popular “MapleStory” franchise.

The contrast between traditional and blockchain-based game development illustrates the ongoing uncertainty and varied perspectives within the industry.

Web3’s Remaining Challenges

Despite the significant capital influx and growing interest, the Web3 gaming sector continues to grapple with fundamental issues.

As blockchain games account for 28% of all decentralised application (dApp) activity and attract approximately 2.8 million active wallets daily, the actual engagement with these games remains uncertain.

The success of “Black Myth: Wukong” serves as a benchmark that Web3 developers aspire to reach, highlighting the gap between current Web3 offerings and the mainstream appeal achieved by traditional gaming giants.