The Problem

Over the past decade, giants like Steam, Apple, and Google have brought great convenience to users with their digital content distribution platforms, forming what is known as "app stores." While these platforms have significantly improved the user experience for software discovery and installation, they have also introduced multiple challenges.

2.1 Increased Market Monopoly

As major companies continue to strengthen their control over the market, developers are finding it increasingly difficult to sell their software outside of these mainstream distribution channels. This monopoly not only forces developers to pay high commission fees but also gradually deprives them of direct contact and control over their end-user base, stifling healthy competition and innovation in the industry.

  • Market Share Concentration: According to market research reports, Apple's App Store and Google's Play Store account for over 90% of the total revenue in the mobile app market, while Steam holds about 75% of the market share in the PC gaming sector. This level of market concentration reflects the significant influence of these platforms.

  • Commission Fee Pressure: Developers are required to pay up to 30% in commission fees to these platforms. A 2021 survey indicated that this fee structure has become a significant burden for independent developers and small businesses.

  • Limited User Contact: The control exerted by these platforms results in developers losing direct interaction with their end-users. This limitation hinders their understanding of market feedback and reduces the quality of customer relationships.

  • Visibility Challenges for New Developers: Emerging and independent developers are facing increasing difficulties in gaining visibility on these platforms. The influx of a vast number of apps and games into the market makes it challenging for new products to stand out.

  • Constrained Innovation: The monopolization of the market inhibits innovation within the industry. Developers trying to create products that comply with platform policies and market trends find their creativity limited.

2.2 The Challenge of Content Discovery

With the rapid growth of game numbers in app stores, players are finding it increasingly difficult to discover new and relevant games. According to Statista, by 2023, the number of games in global app stores exceeded 8 million. This surge in quantity makes it challenging for players to find innovative and high-quality products from small-scale developers.

The challenges faced by independent game developers are particularly significant. A recent industry survey indicates that over 60% of game developers believe their products struggle to gain sufficient exposure in app stores. This not only limits their market access and expansion opportunities but also impacts their business growth and profitability.

Moreover, data from App Annie reveals another critical issue: over 70% of newly released games have a user activity rate of less than 10% within a month after installation. This indicates that even when games are downloaded, maintaining long-term player engagement remains a significant challenge.

In terms of market promotion, small-scale and independent game developers typically invest far less in marketing and promotion than large game companies, reducing their chances of attracting new players. At the same time, many small developers lack the resources and tools for in-depth analysis of market trends and user preferences, limiting their ability to make strategic decisions based on data.

2.3 Missed Opportunities for Emerging Trends

With the rise of game streamers and industry influencers, their influence in the gaming market and ability to attract new users have been steadily increasing. However, existing game distribution platforms have failed to effectively leverage these emerging channels, missing valuable opportunities for promotion and user acquisition.

2.3.1 Growth in Influence of Streamers and Social Media

According to official data from Twitch and YouTube, the audience for game live streaming on these platforms has seen significant growth over the past few years. For instance, Twitch's monthly active users increased from 150 million in 2018 to nearly 420 million in 2023. The annual viewing hours on YouTube Gaming also showed steady growth, from 100 billion hours in 2019 to 350 billion hours in 2023. Surveys on social media reveal that over 60% of young gamers discover new games through social media platforms like Twitter and Instagram.

2.3.2 Shortcomings of Existing Distribution Platforms

Despite the increasing influence of game live streaming and social media, the majority of traditional game distribution platforms have not formed effective collaborations with these channels. According to a 2023 industry analysis, currently, only about 20% of mainstream distribution platforms have collaborative projects with game streamers and social media influencers.

This lack of collaboration limits the exposure of new game content and reduces the competitiveness of these platforms in emerging markets.

2.4 The Gap in Web3 Market Development

Despite the emergence of Web3 technology and cryptocurrencies signaling the advent of a new era in digital content distribution, existing distribution platforms have not adapted to this change, failing to provide mature solutions to support the discovery and participation in Web3 games. This market gap indicates that, despite significant potential for growth, there is a lack of platforms and tools to support the development of the Web3 gaming ecosystem.

2.4.1 Acceptance and Growth of Web3 Technology

2023 Data: According to CoinMarketCap, the number of cryptocurrency users in 2023 reached 120 million, more than tripling from 35 million in 2018.

Growth of Web3 Game Users: DappRadar's report notes that by 2023, the global user base for Web3 games exceeded 2.5 million, demonstrating rapidly growing interest and demand for such games.

2.4.2 Adaptation of Existing Distribution Platforms to Web3

Support from Traditional Platforms: As of 2023, only about 20% of traditional game distribution platforms have begun to explore support for Web3 games, including the introduction of cryptocurrency payment options and support for blockchain-based games.

Market Gap: Despite significant user growth and market demand, the insufficient support from existing distribution platforms has led to a noticeable development gap in the market. This indicates an increasing need for new distribution platforms and tools specifically designed to support Web3 games. This white paper aims to delve into the challenges faced by players and developers, and outlines how Revolution Land leads industry transformation with innovative solutions.

Last updated