Bitkraft 2024 Summit Insights: The Reality of AI x Gaming, IP Challenges, and the Differences between East and West Markets

##TL;DR

The Bitkraft 2024 Summit was organized very well and deserves praise from the @BITKRAFTVC team! Here are some important observations from this lovely summit:

• AI x Gaming is often a meme that people try to market narratives. What people are really interested in with AI x Gaming is (1) improving game asset generation, and (2) AI in PvP.

(1) It is currently difficult to achieve consistent asset generation using artificial intelligence, but this is a necessary condition available in game production. Independently generated images without context may look good, but if consistency cannot be achieved, then they cannot be used. The team is mainly still using artificial intelligence in the conceptualization stage.

Currently, AI tools are mainly benefiting from well-established studios with a large amount of assets for input models, but there is still a practical gap for new studios. 2D has made very good progress, but 3D is still a no man’s land.

(2) The artificial intelligence in games has existed since ancient times (this is not something new), but it is not in today’s artificial intelligence agent environment. Interestingly, if AI can be developed to be more like players in PvE and PvP games (obviously not suitable for all types of games, that is, it can never defeat the boss mode in Elden Ring). If it can solve the cold start problem/matching problem based on multiplayer games, it can greatly improve the user experience. Imagine playing Dota2 without needing mid lane, feeding, buying wards, or AFK teammates.

• Games need well-known existing IPs to be successful - this is a myth. According to statistics, most successful games are based on creating intellectual property rather than licensing it. For example, in the mobile gaming industry, apart from Fate/Stay and Dragon Ball IPs, most games are based on original IPs. Licensing IP imposes significant restrictions on the economic viability and usage of the game. Of course, there are exceptions such as Ragnarok Mobile Eternal Love and Fate/Grand Order, which have performed exceptionally well, but they are not very likely.

• Unfortunately, Westerners still lack a serious understanding of the East in terms of supply and demand.

Even after the black myth Wukong broke the rankings, Chinese games are still stereotyped as being extractive/low-quality/unable to go international.

Most people are unaware of a mobile game called ‘Dungeon & Fighter: Origin’, which generated 5 billion dollars in revenue in its first month of release in China.

• Telegram Games - Don’t just follow the trend of new ‘issuance’ because the vanity metrics distribution is different from the real distribution.

• Discord games have gained widespread follow due to their latest update allowing users to play mini-games without leaving the application. Stay closely follow new developments in this field and any novel applications.

• Japan/Korea/China is still a very isolated market, and it’s hard to understand the local situation unless you actively participate in the ecosystem. Interesting - the most popular dating app in Japan is similar to Tinder, but it has complete artificial intelligence matching and conversation functions, which people outside of Japan don’t really know about.

• The enormous potential for monetizing intellectual property in China has not been fully utilized internationally. We primarily see intellectual property from Japan/Korea going global, but China’s intellectual property mainly remains within China. The top-ranked IP is ‘Douluo Continent,’ with over 50 billion views for its first season of the animated series. I bet no one had heard of it before.

• It is difficult for large game companies to promote game innovation because they usually bear unfavorable risks (RIOT/Valve is one of the most adventurous companies) and often hope to develop sequels based on old successful game series. However, many GOATed OGs leave to pursue the creation of groundbreaking new games.

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