IlluviTalks #8 - The FALL of "Big Tech" (right now?) and RISE of GameFi

Is the fall of “Big Tech” a boon for GameFi or a headwind? What are the revenue streams that you see opening up for gaming creators in GameFi? Will esports growth accelerate once more once Web3 tech is implemented?

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Race across stunning alien landscapes on your quest to uncover the cause of the cataclysm that shattered Illuvium. Hunt and capture Illuvials, powerful creatures who have ruled the land unchallenged until your arrival. Train and fuse your Illuvials into powerful evolutions. Build your ultimate Illuvial team to take into battles and tournaments in PvE and PvP Arenas. Use your creativity to build unique synergies to outsmart your opponents and progress to the top as become the most legendary Ranger on this planet.

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Transcript

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talks music here what's up everybody it's the fall of big Tech it's actually happening right now in the rise of GameFly in today's episode we're going to talk about whether big Tech falling is actually a boon for GameFly or whether it's a headwind our new revenue streams opening up for gaming creators in game five and will Esports growth accelerate once more once web3 Tech is implemented this is going to be a really exciting episode we've got an exciting panel here today the evolution of Esports we're going to dive into it and talk about web 3 creators and everything we talk about in this episode is not Financial advice though it may be insightful for all of you guys to learn this is the show where we lead the conversation about the future of gaming and I promise you'll learn at least two new insights technology insights guaranteed namely because of our first guest luello the grand emperor of Esports I made that title up a former Hearthstone in team fight tactics professional player tournament organizer Guild owner and content creator here he is right here welcome to the show thank you Andrew very happy to be here thank you for the invite uh I'm Roberto I'm from Paris France I'm 29. I've been doing esport for quite some time now and I'm really happy to be able to discuss all of those topics with you guys so happy to have you also on the panel the crowd we have lots of royalty here today friends the Crown Prince of crypto games and content creator who's very tired right now Vulcan in the house what's up Vulcan hey mate how are you thanks for having me on again yeah bit spit it's 4am now so kids didn't sleep which is fantastic if I look like [ __ ] that's why you look wonderful and totally not like dog [ __ ] yeah vattamore is in the house as well also royalty the Imperial Chancellor and Galactic vice president of eluvium's council and content creator in the house what's up better more how you doing buddy oh you're muted buddy I'm oh [ __ ] no you're going back in here okay I'm I'm good I'm good happy to be here perfect look at the Styles man look at this guy's room he's got the orange light down there the pink mic he's got the hair going God man his room is his setup's looking so good it's looking super clean I'm a big fan okay let's get straight into the episode my friends talking about the fall of big attack this is actually not just click bait my friends we've got a lot of things happening right now in the news and I want to piece this together for all of you so you can see what's happening in big Tech and then let's discuss guys so first things first Apple were LED reportedly has begun layoffs and is preparing yet another return to the office push when you start seeing indicators like this in the market you have to start asking yourself why would they be doing layoffs obviously there's a downturn in the economy and the downturn in the stock market if we look at the NASDAQ Composite we can see that tech stocks are down 23 percent on the year not good and all major tech companies even if they do have a huge cash Reserve have to start trimming up have to start letting people go have to start reducing the number of projects that they're doing experimental research and development that they're doing and go into survival mode also as a part of this story we see that Google is now shutting down Google stadia this is not a surprise to anyone that's been paying attention to this project but Google stadia is their their big gaming platform that they were going to launch they were going to have creators on it it was going to be integrated into YouTube game streaming a whole new Revenue stream a controller everything all linked up now completely shutting down offering refunds to everybody that bought in on this failing gaming platform and the last piece of evidence we have today there's a bunch but this is just another one is sell-offs of assets within the big Tech space and this big sell-off I want to highlight here of course is the story you go install of Tesla selling their Bitcoin billions of dollars in Bitcoin uh being sold 75 percent rather of its entire Bitcoin Holdings were sold earlier this year why do big tech companies sell off assets well that's because they're preparing for a downturn for their company in terms of Revenue they don't tell you that because that would further push their stock price and their valuation down but of course you don't sell your assets unless things are looking bad for your company financially or you see a poor outlook for your technology company with all of that context here I want to kick it over to vadimore big Tech looks like it's having a tough time they're selling off assets they're laying people off the entire Market is looking lower and they're shutting down projects and experimental projects so this is clearly marking a turning point for big Tech is the follow big Tech a boon for web 3 projects or is it a headwind for us in this space what are your thoughts about it more see like I've got a totally different take on this just in the sense of like I don't think that anything that you said actually suggests the fool of big Tech I don't think there's a fool of big Tech coming anytime soon I what I think is it's a bear market right now generally and it like financially it's looking like it might be a tough one two three four I don't know how many years and it just looks like they're just cutting trimming the fat off that's just not necessary they're cutting back on experimental stuff because they were just so damn bullish before that they were doing dumb [ __ ] just because there's and they got to cut back on it so that they can do what they do best and improve at what they're doing but like create greater efficiency within their companies and just like do you know what I mean it's like that's exactly what people say about crypto when crypto goes down like they always say that crypto dies but it doesn't mean that it actually does it comes back what's happening is all the projects that are not really adding value that have been like just making money for like stupid reasons almost they're just disappearing because they didn't actually have intrinsic value and that's what's being cut back within Google for example um like stadiums being cut back that doesn't mean that all of Google's gonna fall I I think it's here to stay if I'm personally honest but what does this mean for like like crypto and game fight I mean we're in the same position like oh like everything's falling here as well we're probably doing cutbacks on our end as well everyone's about I think it's good more than anything because all the projects that we're actually making GameFly look dog [ __ ] honestly um are dying because they're they're becoming more and more just like obvious what they are and people don't have spare money right now now to invest in dog [ __ ] so the cream will rise to the top and the cherry on top IMO is eluvian that's interesting so you're saying that they all these big tech companies that are the most valuable companies in the world they're not going to die they're going to thrive and they're actually being responsible right now in trimming the fat in their companies and making sure that they're preparing for the oncoming recession and these are not signs of weakness maybe you're saying these are signs of strength and of being a responsible management team is that is that a fair summary of your point yeah pretty much pretty much got it so big Tech is here to stay better more loves them I obviously I put that word in his mouth so let me ask you this so are we going to see big Tech then as we go through this transition this technology transition uh from web 2 to web 3 all these big tech companies are web 2 companies do we see big Tech handily and willingly integrating web 3 technology into their platforms maybe as we move through this recession and we move out of this recession do we think that they're going to copycat web3 Tech that already exists do we think that they're going to have new Innovations are they going to do both or neither so what are your what's your opinion on that Vulcan do you see these big tech companies integrating web 3 and if so in what regard yeah like I definitely think they will but it's not going to be like an all-in thing um just just purely off the basis that you've got something that works and I know you're a big big one that talks about this all the time in content creation stuff like that and it's the same principle it's like you don't want to do a complete 180 change because you've already got your thing but you also don't want to get left behind so you're gonna dip your toe in we saw a lot of it during the bull run where you know a lot of like the um web 2 companies were sort of you know starting to mention um crypto and all that stuff uh javi's had Facebook with the meta now obviously they weren't speaking directly to crypto but you know it was in there so I think they all will get into it but on a small scale and knock out all in until it's 100 confirmed and that kind of leads into what vetimore was saying about trimming the fat and stuff it's you just don't want it you play I feel like once you get to a certain size you've got to play lower risk and the lower risk is just dipping your toe in and not going too heavy as for how they'll do it I think the smart thing would be to find people excelling in the space and just bring them on and and develop from there so I feel like getting a level where it's already developed at and then if you really want to push then developing from there with the best would be the way to go acquiring alluvium for 100 billion dollars uh sure we're open to offers right now Microsoft and Apple and everybody absolutely acquire the best software all right so we have seen with web 2 companies big Tech uh adopting web three we've already seen uh Reddit integrate they just integrated nfts into their platform I don't know if you noticed they just solicited me for Reddit nfts and to integrate a wallet on my app uh Twitter's integrated nfts Instagrams integrated nfts everybody's integrating nfts in web 2 Tech so the question is is this a trend we're gonna maybe see continue what are your thoughts on this luello do you think everybody's gonna inevitably shift those avatars to nfts and this is just one layer of web 3 Tech we're gonna see on all these social platforms and digital platforms what are your thoughts on that um to be honest I think nfts had have a really bad press uh nowadays and uh those big Movement we see with Reddit as you said on the with all those big tech companies moving uh moving forward to nfts and finding new use cases for this technology uh I think is kind of inevitable I think it's gonna happen no matter what uh and uh it's it's like the game theory you know like uh the the the first the the first people move the first companies uh we see moving to this technology and using them are gonna be the biggest companies in the future you know so it's like a risky game but uh as my friend said before me uh since we are in a bear Market it's uh it's time to build you know that totally makes sense so the question and this is a clickbaity question are you guys ready so the question is my friends are we sort of in a.com boston.com boom phase right now with web3 have we reached that phase with this technology the reason why here's a here's a fun headline for you so have you guys ever heard of the company Enron um if you haven't heard of it it used to be the biggest company in the entire world in the year 2000 by far look at it compared to every other company bigger than Microsoft Dell Chevron everything completely dominating the entire world where is Enron today nowhere is where it is and this happened during the.com boom in the.com bust obviously there was a scandal with Enron that caused issues for them but the point is when we moved into a technological shift as we moved into the web and internet web one Web Two the companies like Enron just failed to be relevant anymore and just disappeared off the face of the Earth essentially in other companies ended up replacing them at the top of this list the big tech companies were talking about right now so the question I'm going to open this up to the floor I wanna I'm curious to know what you guys think but are we going through a massive Tech transformation right now is this the web 3 Tech transformation is this our.com boom and bust are we going to see big enrons of our time if you will just disappear over the next 10 years as web 3 comes into play with every technological shift some Mega players vaporize that's just what happens in disruption the floor is open guys do you think we're in that butt boom and bust phase right now or have we yet to see the Boomin bust phase for web 3 what do you think guys you go better the more you look Keen oh no yeah he's up I'm always kid bro I'm happy to um yeah almost immediate like exactly what you said but when you see that long list you see Enron is huge and then it dies but like a bunch of those other companies made it so there's a lot of big tech companies out there there's there's Microsoft there's Apple we've got Facebook we've got like Google loads of loads of big tech companies it's not like it's just one what I also see happening as well like in gaming is a lot of these bigger companies are starting to just buy out smaller ones to sort of diversify their portfolio maybe what we see is like we all just forget about Facebook because that's just for Boomers or whatever like I definitely think that things will amalgamate into just like the ones that survive and then the ones that don't but like I feel like corporations are and big Tech is getting more adaptive and better at adapting because there's like such diverse teams Within These maybe just Enron just had like some really old school leaders and they were just completely unopened to taking in new ways of of like creating things and and business models whereas all of the current tech companies I think they have like ways in which new ways of doing things do come through up their chain I still think that they should move slowly because they have to and that's the place where we have this huge opportunity in web 3 to have that first mover Advantage they still own part of it though in a way for example like eluvium we're building this huge web3 game I'm pretty sure that we still have to pay um like Unreal Engine five percent because that's just the way the Unreal Engine works so they just got five percent of almost all of the good games going right now so that's that's ways in which they Supply platforms I think we're going to be using Amazon servers that's big Tech with you know that's that's Amazon that's got nothing to do with web3 but we're still integrating that so they they've created a ton of services and I think like web3 new people that are creating and building right now we're going to create these like huge things but then like web 2 huge companies that are a bit more open-minded will come in adopt and then they they almost have more Capital to to build further um but yeah definitely Only the Strong will last got it I mean the big tech companies right now have insane balance sheets too they've got 40 50 100 billion dollars plus cash sitting in their reserves in the case of Google where they can just buy up disruptive technology that comes along so obviously that will be a part of the story any other thoughts on whether this is a.com boom or bust otherwise we're going to move on to our next topic buddy

um no I was I was gonna say the same thing so I'm not uh I'm not gonna repeat that got it we've got agreement on this topic go Vulcan yeah no I think Verma pretty well summed it up it's just it's one of those things like not everyone can make it it's just you know every like there's there's gonna be a lot coming in I think the web 2 companies will still have a lot of sway because you've got all the eyeballs and everything like that um and it'll just be a flushing out of everything and pretty much like better more said the the best will stay and that's about it makes sense I don't think we're in a.com boom or bus cycle yet I think we might do that in the next Bowl after the next Bull Run I think we have yet to see Peak frenzy over web 3 and metaverse in our space and once we see that then I think we'll see the true bust just my opinion really quick you guys can catch this show on literally every single audio platform in the world by going to eluvium.buzzsprout.com it's on Apple podcast Spotify overcast cast box have you ever heard of podcast index who cares you can listen to this show there too audio version of a louvatox available for you not only in video format on Twitch Twitter and YouTube but also on every audio platform for your listening pleasure Gentlemen let's move to the next topic then and this one's going to be near and dear to all of your hearts and to everyone's I was just on an investor call soliciting an extremely rich person a billionaire for money for a startup and and what he was telling me is that every project that's pitching him right now is saying marketing is moving away from web 2. it's moving away from advertising and it's moving toward creators and he specifically asked us for the startup what are you doing with influencers so even the billionaire Boomers out there understand creators are the future of getting people's attention I mean just look at this show it's a bunch of creators here with your attention audience so let's talk about how creators are going to evolve from the web 2 world to the web 3 world let me share some fun data with you guys because I like teaching people things and informing you on what's happening in the market and then we're going to discuss so piece of the story number one twitch just caught how much money its biggest creators get from subscriptions top creators were getting a 70 30 split and now they're only getting 50 50. why do web 3 create or web 2 Creator companies cut the amount of money they're paying their talent because they are doing poorly financially obviously twitch has been bleeding money since day one and they're bleeding even more money today and they're in bad shape furthering the story about how web 2 is struggling in this new economy but wait there's more KSI on Tick Tock ever heard of him one of the biggest gaming creators of all time he's got 9 million followers he got 200 million views on a video and he only made like 3 000 total dollars on his entire Tick Tock account that is not good for creators if one of the biggest creators in the world on the quote-unquote hottest Creator platform out there Tick Tock only made three thousand dollars hmm that bad for web 2 platforms so what are creators doing well they're obviously moving to platforms like patreon which allows them to do subscription memberships and collect money directly from their followers there's 250 000 creators here but there's tens of millions but even patreon takes 10 of your Revenue to 15 of your Revenue puts it in their pocket so now in the web 3 space we've seen players like rally enter the space and offer a kind of web 3 alternate version for creators to make money and to survive in the web 2 world why are platforms like rally popping up where you can create a coin you can sell nfts you can make money here and it's because the web 2 platforms are not able to compensate creators sufficiently creating a market opportunity and creating potentially a shift in the Creator economy for gaming creators and this is going to directly impact metaverse web3 gaming crypto gaming and of course everyone on this call so the question we're going to kick this off with is how is a web 3 Creator going to differ from a web to Creator Vulcan as literally a web 3 and web 2 Creator yourself what are your thoughts on this topic not me you go you're on firstly I want to know what your startup is um I'm not telling you secondly

um I I don't think like this is one thing that that's funny it's like web 2 versus web 3 Creator they're just creators and it's just what what they're in if that makes sense um I I don't think we like there needs to be a distinction I think at the moment like myself and a lot of creators are making separate channels for web3 because in in the web 2 space nfts crypto like if you say it's a it's a really funny thing for me I'm on a bit of a tangent at the start here and then I'll redress it but it's a funny thing where in the crypto space if you talk to anyone they're like gaming is the future it's the mass adoption it's everything you're like okay that's that's that's that's awesome and then you go into web 2 and you say nft and everyone's like get the [ __ ] out so we're we're at a point where it's a bit different and that's why you will see a lot of segregation between the quote unquote web 2 versus web 3 content creators in channels and stuff like that because you don't want to commit suicide on a web when you're playing web 2 games by saying oh here's nfts and stuff because it's essentially until you get it it gets more adoption and it gets more acceptable you know people won't want to make that big jump because it's it's not received well at the moment nft is a bad word crypto is a bad word you don't want to say it or you're a subscribers or your followers will go away is what you're saying as a web 2 creator yeah it's it's just it's it's not a great look no one no one in web 2 is impressed with it and understandably so like has there been a good example yet of a fully launched game in web 3 that hasn't been a bit of a Ponzi um like everything's pretty much going pretty poorly so far so it's gonna take a while it's gonna take the some proper games to fully release and to demonstrate it uh I think but as for like web 2 versus web 3 when you were talking about the sort of advertising Revenue as well with things like Tick Tock I think that's also about attention and the influence that you have in those videos when people are swiping through a million of them in a day uh the the revenue share like like I don't know how much Tick Tock makes but I can't imagine like well when you watch a tick tock you're not seeing an ad before it um whereas you watch a YouTube video you can see you know one two three however long the video is more ads along the way so you're getting paid based on what you're earning them as well so I I don't know the Deep numbers but that sort of thing makes sense um moving on past that with like the web three um and the web 3 Integrations for creators to make money and stuff like that me personally I'm not a big fan of all of it at the moment I I'm a very strange person like I I just I just yes you are patreon yeah I know I I despise patreon and stuff like that I just don't think if you're this is a bit of a hot take I I just think for me personally when I went to go full time into content creation I didn't want to rely on getting money directly from viewers to be able to maintain my business otherwise I don't think I'm running a very sustainable business model um obviously you can obviously like you look at Twitch streaming everything's driven from um you know from subscribers donating subscribers donations of just money and stuff like that um but this is where like I'm not interested in all those platforms and stuff to make money from your viewers um yes you can launch nfts you can create tokens and stuff like that that is something me personally I will stay clear from for a fair while I find it quite funny this is just another side tangent um a lot of creators will uh you know [ __ ] talk uh for instance I'm in Mobile gaming a lot of people should talk uh mobile gaming companies because they take they bring on you know psychologists and I'm assuming eluvium is a very similar process where it's like you want to under you want you want to get people hooked on your game and you want them to keep coming back and you want them to spend money and the funny thing for me is when when I when I watch people complain about these companies and stuff like that is that the streamers doing the exact same psychological tricks on their audience to get them to donate more subscriptions donate more money and stuff like that so it's very interesting and I think eventually everything will just meld in and you know if a platform on web3 is proving to be a better version of something from web 2 then more people will use it but it's going to be that sort of steady adoption once it gets to a point more people use it then more people adopt it and then it'll just keep going up so I hope that answered the question a little bit it did answer the question detailed thoughts it's a detailed tangent and I liked it the question I want to ask then and I'm going to go to vetamore with this will the average person need to become a Creator in some capacity to be relevant as we emerge into the web 3 world will you be able to be like a normie who's offline and I don't use social media or I don't use whatever web 3 means in 10 years from now or is everyone going to have to create content on the internet to say a relevant human being as Things become increasingly digital part of me hopes like that no just because that just brings to mind like that Black Mirror episode where everybody literally has a social media presence and the more likes and like the more Hearts you get or whatever like the higher your state is in society and if you just make like one little mistake you're just your life's ruined and it's like well that's kind of weird because we're not actually made to be like that in the sense that like humans kind of just like a few hundred years ago lived in very small communities and if someone was fighting on the other side of the world like you had no idea you were just enjoying the daisies you know like it didn't affect you whereas currently like anything going on affects you it's it's a complex thing um but like I also at the same time feel that people should start creating more like I think at this point like everyone should almost write a book because it's so accessible to do that we have so much at our fingertips like at the same time 100 years ago everyone was a peasant like literally everyone was a peasant and then now everyone is a king with the Library of Alexandria like literally like right here in your hands in your pockets we will sleep on like the bed of kings and it's like we have absolutely we are literally all individual Kings and are are like country or are they or like our people is kind of us because we employ ourselves we use ourselves as our own work like we can we are like a self-contained thing and I I don't see any reason why people shouldn't develop like public speaking and the ability to like like consume information by not just consuming it but then also sharing it because like personally like what I found as a content creator yeah and like I've been doing this before becoming a content creator I really enjoy learning generally but then I also like talking about what I've learned because like sharing that with somebody else like you learn it even deeper and then that that sort of just like sharing yourself in that way I personally that excites me but I also don't think that is for everybody because like I know my dad for example he's like Works in construction his whole life and he is so So Satisfied to be in construction just work with his hands and live his life the way that he wants to so I think people should be free to not have to be content creators or like public speakers if that's not exciting to them but I also think that we're moving into a place where like you shouldn't just be like specifically good at one thing because that makes you super fragile to be super anti-fragile you need to be good at loads of things and try different things and and that that way your awareness as well you're not just aware of this one's like super Niche scientific field of study you're aware of like oh I can I can I can do my own electricity I can like do like repairs in the house but I can also do this I can also speak publicly and like being able to do all these different things whatever the world brings at you you're way more anti-fragile and I think that's what we're moving into where every individual kind of works for themselves in a way and can be doing multiple things as an endopreneur like as a not somebody that commands other people but you just sort of have yourself you are your own business um yeah that kind of a thing yeah so the trend of self-employment is increasing with the power of the internet and being able to access the Library of Alexandria in your hand and then being able to reach everyone in the world and have all the business infrastructure at your fingertips every human in the world gets to benefit from that I I love I love it and being anti-fragile that makes sense in uncertain times Louella I got one to kick over to you you said you've been wearing that headset on your head for 10 years talking into that thing about Esports and video games and making online content obviously some money's coming out of that for you right the question I want to bring up and I want to bring up an example here and I want to get your take on this even exchanges like crypto.com are chilling these nfts created by creators who are getting a cut of these nfts and are putting some of that money in their pocket so the reason why I bring this example up is everybody in the web 3 space not just open c not just random crypto projects not just random nft problem Jess even the exchanges C5 everybody is trying to get a piece of that sweet sweet web three dollar and figure out what those new revenue streams for creators are going to be so the question to you luello is what revenue streams do you see opening up for creators in web 3 is it any of this nonsense we see right now or is it going to be something completely different oh that's a biggie okay um to be honest that we can't we can say we can tell you now um I think ad revenues as we know it Are Gonna Change we're we are already seeing a lot of changes in uh the revenue share on Twitch like you said but also on YouTube uh uh I've been infected myself and um I think a lot of things are changing I'm not sure how web3 technology are gonna help uh improve uh the the the revenue of content creators uh in 10 years for example but um something really important we have to to understand is we are really really early and I think uh like for example we just found out about uh Soul bound tokens like Vitaly was talking about a few weeks ago I think a lot of new uh web3 related Technologies are gonna come up and a lot of new use cases we're gonna find uh that will improve the revenue of content creators I think today the nft the selling of nfts uh especially the nfts we see today are not going to last uh at least not for uh not for uh content creators I don't believe in uh I don't believe in that but um yeah I I think I think it's uh we don't know we we don't know what's going what's gonna be invented in the next few years and that's gonna change a lot of things we are really early yeah so it sounds like you're you're you haven't seen anything yet that's like that's the thing that's gonna take that's gonna take off for creators and yeah I agree with that I think creators making random dumb looking pictures and then minting them on the blockchain for cash I don't think that that's a sustainable business model that'll be here in some capacity in that a talented artist or something can create something or somebody can make something unique but that will be a niche I agree I don't think we've quite seen the solution yet we're about to move into Esports now wait can I just quickly just throw a hot take in hot tub fire tape go as much as like I believe in the blockchain and in the technology that's there in the utility that can provide the world but I also do not think that blockchain is the solution to every problem there are problems that have web 2 Solutions yeah that's that's like they're all just look not everything needs to be solved by blockchain and sometimes it's just not necessarily like necessary um basically I think it's a solution for the financial system and then it will there then like just trickle into other places I think it's huge for gaming but I don't think every single game needs to implement it tomorrow I think it will over time um but like I don't know like a role-playing game does that need an nft I I don't think it does if it can make those Legacy gaming companies more cash you better believe it needs an nft but we'll see right it'll take time it'll take time just like we saw with Assassin's Creed they gave away free nfts and people hated them right so that is going to take a bit to catch on I agree that the uh the trading aspect aspects the marketplace aspects and the ownership aspects of what web3 or blockchain can offer gaming in particular is going to be particularly transformative and that brings me to our sponsor of this episode eluvium who just completely upgraded the louvadex check out this quick video that's going to show you what happened there and we'll be right back with our final topic for this episode I think the best one Esports in Competitive Gaming check out this video and listen to that sweet voiceover

eluvium game studio is developing a game that combines an exploration looter with a collectible Auto battler where Gamers can play and own Rewards [Music] we are excited to introduce version two of the aluvidex our official eluvium market exchange features intuitive Analytics enhanced navigation approved maps and additional functionality [Music] yeah that's one sweet voice-over says the audience thank you for that unsolicited uh take there guys go check out the new Olivia decks we worked really hard on it illumadex.iluvium.io we want to improve the marketplace experience for alluvium and hopefully set an example for the gaming space uh with one upgrade at a time so thank you to the team for upgrading that just want to make sure you guys check that out land is the main thing you can navigate right now that is particularly interesting we have more Hot Topics let's talk Esports I mean obviously we have luello here who is literally an Esports junk or not emperor of Esports we talked about earlier but before we get into the actual questions let's set the stage on where Esports is right now statistically where is this Market check this out I I'm gonna do the quiz I'm gonna do a quiz thing all right because I think it's fun okay in one year luello how much money do you think is made in Esports sponsorships in one year if you were to guess globally

you're muted yeah my bad uh all good I don't know maybe something around 500 Millions 500 million is the first guess got it better more what's your guess I don't even know man it depends on a lot what what wait how big has it been in the past I can't say that it's just it's just a fun guessing game Global Esports Revenue what is it uh with sponsorships one year I'm gonna go 250 mil 250 million 500 million Vulcan I've got no bloody idea but one thing I would be really curious to see is sorry I always get off topic is the the revenue generated in that sense and how much actually gets destroyed like like ins and outs I want to know how much like off the top profit they're getting on it because that would be an interesting thing as we move into web 3 like more prizes and related stuff but I'll go let's go 750 let's go high 750 okay well I already know the answer so I'm not gonna guess so here's the breakdown in the Esports World in terms of Revenue 641 million so Luella wins Price is Right style if you go over you lose by the way Vulcan and here's some other revenue streams just so you can see so sponsorship is a juggernaut in Esports it's the hugest Revenue Source by far media rights and publisher fees are the next biggest then much smaller is merchandise and tickets digital revenue and then streaming way down at the bottom a tiny tiny portion of Revenue why am I bringing that up you don't see tokens you don't see nfts you don't see anything web 3 or blockchain related here in terms of Revenue you're seeing a web 2 and advertising and sponsorship heavy industry is this ripe for disruption is the question we're going to bring that up in just a moment some other statistics viewership is kind of plateauing and growth in the Esports viewership is kind of not as impressive year over year so in terms of viewing video game content roughly fifty percent of viewership for a long time has been Esports and then fifty percent of viewership is non-esports the trend is that it's going up slowly but look at the percentage change that was changing by 27 13 year over year and the change has slowed down so the share that Esports takes up of all of our attention is decreasing over time the biggest Esports prize pools in the world DOTA is the biggest one of all time at 47 million dollars for a prize pool and they have been the king of prize pools now for I'd say close to a decade no one has even come close to disrupting this other interesting statistics are predictions of Esports Revenue it just keeps going steadily up each year by six percent per year roughly we could say that it's tracking with global inflation so it's not growing that fast it's kind of growing at a middling Pace all right so with this information what we're seeing generally speaking is Esports is largely dependent on Advertising Revenue it's not growing as fast as it used to and the um the global share of attention with Esports versus mainstream gaming has kind of leveled off and so what does this mean for Esports it means it's not the explosive growth new thing it used to be it's just kind of starting to get into maturity and starting to kind of plateau so the question for you luello is web 2 Esports is growing slower has the trend stalled out and is there anything that's happening in web 3 that can accelerate Esports once again to be on a rocket ship to Alpha Centauri

um yeah

um basically the first thing I think is uh uh Elohim isn't out yet so that explains this uh and there you go all right thank you for your answer we'll move on to that guy uh no yeah um yes to be honest it's hard to say I think today people are looking for entertainment more than uh Esports as uh as like uh performance you know uh if I if I speak for myself uh when I was a professional player I was I used to have maybe between four and five thousand viewers on Twitch uh and it was going down and down uh till maybe 2000 and then I stopped playing professionally I started more uh making fun uh my stream has uh was uh an entertainment stream basically and I saw my viewers going up again and I went up to maybe six or seven thousand viewers uh when I was not at my best level you know so I think people today I think the what what people are looking for today on the Internet is changing uh uh because when a game is new uh people want to see the best players but as the game uh as the time goes uh people are less and less uh interested in performances they want entertainment I think uh DOTA has a big cross cash prize you were saying before because they have this very cool system of uh like uh they they I think I'm not a DOTA player but um I think skins yeah it's it's basically sound like a compendium and it's crowdfunded largely and people buy like a unique yeah digital item to fund the para prize pool yeah exactly and why I bring that up is because I think this very system is super interesting for web 3 gaming I think nft technology can be really useful in in this in this system you know and uh we can say they have the biggest cash price so it might be the future of uh of cash prizes in Esports I like that idea quite a bit of um you know the the crowd-funded Esports prize pool I mean luvium's made a commitment to have the biggest Esports prize pool ever coming you know in ilv tokens but you're right DOTA is largest because it's crowdfunded and because they gave everybody it's not on the blockchain but they're giving them a digital collectible essentially in exchange for contributing to the prize pool that's a model that clearly works wouldn't it add extra value if you owned that digital collectible and it was on the blockchain I really appreciate you pointing that out and then one thing I wanted to bring up to your point I don't you don't just think attention is changing you know from experience and the numbers support what you're talking about if we look at twitch games right now um I predicted this three years ago that just chatting would become the biggest game on Twitch it did and here it is it's it's bigger than every other game including League of Legends FIFA valorant and every other title and just chatting though it has 13 of current viewerships on viewership on Twitch I predict that it will be 50 uh by in the next five years um maybe more it might be eighty percent we'll see and I think that this is a larger Trend to your point of people being less and less interested in video games streaming why would they be less interested in video game streaming hold on that doesn't make sense I thought streaming was the hottest thing in the newest thing and everybody loves it I think there's fatigue from viewers they're tired of watching people play video games there's not enough variety and they quickly get tired of the game and the novelty that was here 10 years ago 14 years ago when I started as a twitch partner of watching someone play a video game and having a chat on the side the novelty's gone we've we've chugged hundreds and thousands of hours of that type of content and that's not interesting enough anymore and I think that's a big reason why we're seeing just chatting explode as a category on Twitch and why we're seeing things like gambling streams hot tub streams with lots of boobies and all of that stuff come into play on platforms like twitch we can laugh about it but people are succeeding doing that type of content now because video game streaming on web 2 platforms isn't exciting to attract attention anymore so I know that's a hot take let me bring this up then if Esports revenue is largely dependent on sponsorship Revenue are we gonna see it shift going into web 3 Esports what's your opinion on that venomor is there going to be a revenue shift change if attention is dropping in web 2 and web 2 streaming does web 3 Revenue have some opportunity to innovate we mentioned the DOTA example what do you think made a lot of really really good points firstly like with the fact that you could crowdfund the prize pool not only does eluvium obviously have like a million ilv tokens to give out as yield and for for like tournaments and all these different things but you can essentially get people to buy into the tournament and make different types of tournaments like that and it ends up being like watching a poker tournament in a sense where there's a pre like there's a buy-in a prize pool a pay ladder and It ultimately becomes like that with obviously alluvium funding some of these tournaments completely themselves but also maybe having more regular tournaments where like people could be just playing every day grinding literally like for money like mini tournaments almost like little sitting goals or like things like that when like you know comparing it to poker but the the other thing that lowello mentioned is that people are less and less interested in like like competition and they're more interested in entertainment and that's something we've also seen in like the boxing scene where the biggest boxes in the world like they're not necessarily the best they're actually the most entertaining you see that with like KSI like Jake Paul like how much money have they made from boxing compared to probably like the best boxer in the world that no one's ever heard of right that's a huge thing so then it sort of becomes like actually hosting these huge invitationals um and and like different types of like like oh like these guys have a beef like challenge them you know Kieran versus gron for a million dollars you know that was like for me that was huge I was watching that I was on the edge of my seat and watching like that kind of like more entertainment competition I think that's also very very interesting but there also comes a difference where you like even if people don't necessarily enjoy watching like maybe just a single person playing a game over and over unless they're really trying to like learn they they like like creators actually collaborating and making stuff together like that's actually huge and it's genuinely entertaining to watch um I I remember chatting to godson when he first came into our space and he was like yeah no I've like what's going on here like in web 2 as a as a huge web 2 Creator like we all never spoke to each other we just made videos ourselves we we we we did our best to be the best at what we did and we were we were competing and he was so confused because we were all helping each other and and like supporting each other as creators and that's what's been huge is like the explosive growth that any Creator can have in this space just by collaborating getting involved and there's there's those opportunities as well so I think in web 3 there's going to be a lot of different ways to play it and there's also the fact that you can potentially like there's there's money in the system to do different things there's coaching that's that's totally unheard of almost except on the like higher echelons of prose Sports in in when it comes to web 2 Gaming coaching suddenly a genuine thing that like well if I'm like really enjoying this game but I want to spend a few extra hours a day playing it um I might as well learn to be a bit better at it because there's potential money on the line here well and parents uh paying for their kids to get coaching for fortnite people laughed it's like look it's like paying these days it's like paying for a piano teacher used to be back in the day or teaching or a private tutor or a private soccer coach for your kid if you want your kid to be great at soccer um collaboration in web3 that's the big special thing I think we're seeing here that's really taking off and that's the big Trend I mean look at this that's the reason why I created this show for luvium I brought all of you guys in here because I wanted to collaborate on content it makes the content way more interesting than if I was just yelling at the camera the whole time though I know you all would love it Vulcan let me ask you this question if viewership is plateauing in web 2 games people just want to see hot tub streams and boobies then what does web 3 bring that is going to be exciting and it's going to reinvigorate viewership once more to bring the novelty back of watching gaming streaming content loaded question

uh web 3 supplied hot tubs I guess and and then we're good so tokenized hot tubs yeah um no to be honest like I I think the whole the whole twitch scene it's like you like if you look at audience on gaming it's mainly dudes young dudes and they're susceptible to that and like that that sort of stuff makes sense um and then you move into the gambling streams and stuff like that um and like and I don't I don't I don't want this to be a reason but like the the stakes on gambling I think maybe why like I don't watch gambling streams I I hate gambling in general um like myself like I've never bet on sports or anything like that um but I I think the stakes involved in things can make can make it more interesting and I think web3 allowing more prize money and stuff like that will increase the stakes however the games still have to be popular enough so the funny thing that I saw when you were you were showing all the you know the the top Esports games and stuff like that none of them are high Revenue generating games either um when you compare it to like things like mobile games and stuff like that like I'm just looking here I just quickly Googled it like engine impact it's not even two years old it's a mobile game across the PC uh it's made 3.7 billion dollars uh in just under two years um so like some of the revenues that these more casual games are generating is ridiculous compared to the like when you when you look at there's genjen there um like some some of the new generating games are not getting the top spots into the revenue generation Sports viewership and entertainment viewership but they are getting the top spots in terms of how much cash they're bringing to the bottom line every month yes and like a lot of these are PVE only games casual games no room for an Esports scene even so I think um if web3 allows that more competitive nature of like sort of like they always refer to it as like trading card games where yes you gotta spend money so it generates more Revenue but then it has a much more competitive scene and can reach wider adoption than you have more revenue for those competitions and then it increases the stakes and makes things a bit more exciting I think that could have an impact but overall I just think at the moment uh from what I'm seeing anyway I just feel like gamers are more casual like back in the day like I used to sit down and watch um competitive wow players stream just arena games like I I just have that on my screen all day I I absolutely loved it um but I feel like that's where games were back then and I think a lot more gaming is getting heavily casual compared to the competitive scene so that's also just a steady thing and I don't know if web3 will make you know Esports bigger than it is um but yeah I just see that as a trend being casual is becoming more more prominent and it's it's easier to play a game casual is is another thing I think than to try and play competitive get stomped and then just be sad about sucking so yeah it's an interesting one there's a lot of psychology behind it but um but yeah I'm going to give luello the final word on this one and there's a great content comment here from Sun Wu saying Financial incentive fantasy football draws people to the NFL or college football or any sport that wouldn't otherwise be drawn because they're they have some money on the line they have some kind of pseudo gambling or just straight up gambling aspect to how they're interacting with the game and it and they now have like a horse in the race if you will they care if that running back scored a touchdown they care if that player performs or doesn't perform they care if teams they never gave any shits about win or lose because they have some incentive on the line so do you see the same thing playing out with web 3 and with gambling uh or pseudo gambling mechanics here in Esports moving forward I'm not sure I understand I I understand what he said uh on the the comment said well basically the comment is you think's like fantasy football or sports betting like DraftKings and what have you uh add a lot more interest to traditional traditional competitions where people care about players and teams they would never care about they have like three TVs going they have to be a little sports bar to see all the games going on because they've got 500 bucks on the line with their buddies at work or whatever so do you see that sort of gambling aspect pseudo-gambling aspect or even tokens nfts some Financial incentive in web 3 Esports or the future of Esports driving more interest around Esports I don't know about driving more interest because to be honest I think um what is really strange to me today uh and wasn't a few years ago is the fact in all of those big names we saw on your uh on your screen like League of Legend fortnite when you buy your skin when you buy anything a weapon whatever uh you you you don't own what you buy and when people start understanding this uh I think Mass adoption will come I don't think uh gambling will be the main reason people will come to web3 gaming I don't believe in that I think Mass adoption will come in many other ways and um yeah that's pretty much it and um the Esports we are all looking forward to the Esports scene of eluvian because uh as you said uh there are big big things coming okay so gambling isn't going to be you can just jump in on that one oh boy oh boy I was like no no it's like to me it's also like if if gambling and that sort of related stuff is what we need to expand Esports and stuff like that it's a kind of a sad thing when you consider the demographic of people that are in gaming and you know you know I mean I get these older people but there's a heavy amount of young people that are involved and if we start and if it becomes a gambling aspect that starts you know being pushed on the agenda I just don't think that's a good thing overall

I don't disagree with you I think gambling should be for adults and there's a reason why there's gambling regulations so I agree I don't think that I don't want my seven-year-old daughter gambling in video games uh and that's why I've been critical publicly of gaming companies literally putting slot machines into games rated E for everyone uh NBA 2K being an example where they literally have an effing slot machine inside their basketball game it's disgusting so anyway we agree on that point let's go to shout outs vetamore do you have a YouTube channel or something and should people subscribe they they it should if they like it if they enjoy the content um it's just better more at alluvium you can also find me on Twitter at better more ilv yes search that on Google YouTube also Link in the description below luello I've heard that you stream and people like it thousands of people so where can people check you out and see what you do each and every day actually all my content is in French uh we work on a lot of things but uh we also created The Guild which uh which puts uh which is a bridge basically between web 2 and web3 gaming we make tournaments we make a lot of things uh it's called MVP you can find it on Twitter I can put it here for you uh on the road if you want to put it in the chat uh and yeah you are it's a international Guild so it's in English we are or you are all welcome to uh to visit perfect I just put that link in chat and I'll add it to the description on YouTube thank you and then Vulcan I know you operate the largest children's gambling site in web 3 but what else do you do that you want people to check out not too much man just just chill not you'll have the links in there it's all good uh yeah YouTube Twitter that stuff it's all good it's Vulcan follow Vulcan if you Google the louvium you probably saw him guys thank you so much for joining me on the episode and thank you everyone for watching this episode and listening to this episode of a louva talks we'll see you at the exact same time next week with new guests new topics and new insights I guarantee look I'll give you your money back but I guarantee you learned at least two new things in this episode you know I'm right see you next week keep learning adios