Structured UGC

Structured User Generated Content

The Future of Gaming and Player Empowerment

The gaming industry is an ever-evolving behemoth that has grown exponentially over the past decades. Currently, with a market size of $200 billion, games are more than 2x as large as the Movie, Music and Streaming video industries combined! However, despite its enormous success, the industry falls woefully short when it comes to sharing its revenue with the most important stakeholders — the players themselves. With the advent of user-generated content (UGC) and new developments in technology, the future of gaming is set to change dramatically, with the players reaping more of the rewards they deserve. In this article, I will explore the concept of Structured UGC and how it is poised to revolutionize the gaming industry.

The Current State of Revenue Sharing in Gaming

Today, only a small fraction of the gaming industry’s revenue, approximately $2–3 billion, is shared with the players and creators. This is a disappointing statistic, especially considering that platforms like Roblox and Twitch rely heavily on player participation and content creation. Players are not only responsible for the word-of-mouth promotion that brings in new customers, but they also provide the multiplayer experience, content generation, and much of the long term engagement in games like Minecraft, Roblox, and Fortnite. Reach, Retention and Revenue!

Straight-line CAGR growth for the game industry will deliver a staggering ~$450 billion market size by 2030. This growth, I argue will be largely powered by UGC — as players create more and more and get better tools to create and understand the true impact of their creations they will demand a more equitable slice of this massive pie. This is where Structured UGC comes in, providing a framework to empower players and reward them for their creativity and influence in the gaming world.

Introducing Structured UGC

Structured UGC (User-Generated Content) is a groundbreaking approach that combines the creative power of players and having them partner deeply with the core development team to create within and expand the core game worlds. Both the players and the dev team are accelerated with the efficiency and scalability of artificial intelligence. It aims to maximize player involvement by giving them the tools to create unique game elements while seamlessly integrating their creations within the game’s universe. With Structured UGC, players are no longer limited by the constraints of traditional game development; instead, they have the freedom to actively shape and expand the game world alongside the development team.

In the context of Million on Mars, Structured UGC has taken a giant leap forward by integrating Scenario’s Generative AI platform into the game. This partnership allows players to access bespoke and curated AI generators, enabling them to create buildings, inventory items, parts, minerals, and other game elements using the Game Design Editor (GDE). This innovative approach ensures that the game grows faster than any player could possibly explore, resulting in a thriving and ever-evolving game world.

Empowering Players with Structured UGC

Structured UGC has the potential to transform the gaming industry by empowering players to take on a more significant role in the game development process. By involving them in the creation of missions, crafting chains, buildings, and items, players gain a sense of ownership and engagement that goes beyond the traditional gaming experience. This fosters a strong gaming community, where players feel truly invested in the game’s success and growth.

This is in contrast to the open sandbox or metaverse worlds where players are burdened with creating whole new experiences from tabula rasa! It is hard to create whole new experiences, but with Structured UGC, players can come in and add more chemicals to the Chemistry crafting chains, or they can create a mission to investigate a methane anomaly found deep in a lava tube on the volcanic slopes of Tharis.

Moreover, Structured UGC allows players to develop valuable skills, such as product management, as they can access specific engagement analytics to better understand how their creations impact the game. This not only enhances the player experience but also fosters a sense of pride and accomplishment as they see their contributions come to life and positively influence the game world.

Redefining Revenue Sharing with Structured UGC

One of the most significant benefits of Structured UGC is its potential to redefine the revenue-sharing model within the gaming industry. By actively involving players in the game development process and leveraging their creative contributions, Structured UGC enables a more equitable distribution of revenue. As players become more invested in the game and its community, their word-of-mouth promotion and content creation efforts drive growth and generate value for both the players and the game developers.

By adopting Structured UGC, game developers can create more progressive revenue-sharing models that ensure players are fairly rewarded for their creativity, time, social capital, and efforts. The accounting and distribution of these rewards does not require a blockchain, but it is certainly enabled by web3 technologies such as decentralized exchanges. This approach aligns with the projected growth of the gaming industry, which is expected to reach $400–500 billion by 2030. As the industry grows, it will be in the context of the greater transformation from generative AI and where content creation is hyper democratized and abundant. The game industry always adapts and innovates on the business model and I see it as inevitable that the game industry shares the revenue much more progressively with the players — not out of alturism, but essentially to build sustainable moats!

The Future of Gaming with Structured UGC

As the gaming industry evolves, it is becoming increasingly clear that the old model of game development, in which an internal team makes all gameplay decisions, is becoming outdated and paternalistic. Structured UGC represents a paradigm shift in game development, allowing for a more collaborative and inclusive approach that brings players to the forefront.

By integrating advanced AI technology and empowering players to create, game developers can build vast, inspiring worlds that involve players in a more meaningful way. This new model fosters a sense of community, collaboration, and ownership that was previously unattainable in traditional game development. As a result, players become not only consumers of the gaming experience but also active participants and creators who shape the game world and its future.

Structured UGC also has the potential to drive innovation in the gaming industry by opening up new avenues for exploration and experimentation. As players contribute their unique ideas and perspectives, game developers can gain valuable insights that help them understand the needs and desires of their audience. This iterative feedback loop can lead to the development of more engaging and immersive games that resonate with a diverse player base.

Furthermore, Structured UGC can contribute to the democratization of game development. By providing players with accessible tools and resources, more individuals can participate in the creative process, regardless of their background or experience in the industry. This can lead to a more inclusive gaming landscape where diverse voices are heard, and new ideas can flourish.

Conclusion

In conclusion, Structured UGC represents a significant leap forward for the gaming industry, offering an algorithmically sound method for creating expansive and inspiring game worlds, involving players, and rewarding them for their contributions. By embracing this innovative approach, game developers can move away from outdated and paternalistic practices, paving the way for a more equitable and dynamic future for both players and creators alike.

Structured UGC encourages collaboration between players and developers, fostering a sense of community and shared ownership that drives innovation and growth in the industry. By actively involving players in the game development process, developers can create richer, more immersive experiences that cater to the diverse needs and interests of their audience.

Ultimately, the future of gaming lies in the hands of the players. As Structured UGC continues to gain traction, we can expect to see a shift in the way games are developed, experienced, and monetized. Embracing this new approach is not only an opportunity to create better gaming experiences but also a chance to reshape the industry in a way that is more inclusive, innovative, and equitable for all.

Originally published on Medium.