Sébastien Borget, co-founder of The Sandbox, has transformed his childhood passion for gaming into a groundbreaking venture. The Sandbox has emerged as one of the most prominent metaverse platforms globally, boasting over 6.3 million user accounts linked to cryptocurrency wallets.
A Thriving Gaming Ecosystem
Recently, The Sandbox hosted its Alpha Season 4 event, which saw participation from more than 580,000 unique players within just six weeks. This impressive engagement resulted in 1.1 million blockchain transactions and 350,000 NFT sales. The platform’s creator economy is flourishing, with over 1,500 user-generated games published, showcasing the vibrant creativity of its community.
Borget’s entrepreneurial journey, backed by his expertise in telecommunications, has facilitated over 400 major brand partnerships and established The Sandbox’s native token, SAND, as the second-largest gaming token by market capitalization, according to CoinMarketCap.
The Future of Web3 Gaming
As a featured speaker at Consensus Hong Kong, Borget discusses several key topics that shape the future of gaming, including Asia’s rising influence in blockchain gaming, The Sandbox’s strategy for cultural localization, and the potential impact of artificial intelligence (AI) on the gaming landscape.
A Passionate Beginning
Borget’s journey in gaming began with a Super Nintendo, and he has since owned nearly every console on the market. His early passion fueled dreams of creating his video games. In collaboration with co-founder Arthur Madrid, Borget launched The Sandbox in 2011 as a 2D world-building game, achieving 40 million downloads. However, challenges in retaining game creators due to App Store revenue-sharing constraints prompted a significant transformation.
Rebuilding on the Blockchain
The emergence of CryptoKitties and the concept of NFTs inspired Borget and his team to rebuild The Sandbox on blockchain technology. This shift allowed players to own and monetize their creations, leading to the creation of avatars, virtual land, and assets as NFTs, thereby launching a token-driven economy.
Navigating Market Challenges
Borget reflects on the challenges faced during bear markets and shifting user expectations. Despite a tough fundraising environment in 2018, The Sandbox secured seed funding from prominent investors, including Animoca Brands and Square Enix, indicating Asia’s strong appetite for blockchain gaming. The company’s Series B funding round in 2021 further solidified this trend, with Asia accounting for 40% of its audience and revenue.
Cultural Localization in Focus
Unlike many Western companies, The Sandbox prioritizes localization in its approach to various Asian markets, embedding small, regionally-focused teams in each country. This strategy has enabled successful partnerships with local entities, such as collaborations with Bollywood studios in India and high-profile projects in South Korea, including the popular webtoon Solo Leveling.
The Importance of AI in Gaming
As AI technology continues to develop, The Sandbox is exploring its potential applications in gaming. Current initiatives include chat moderation using GGWP AI for a safe player experience and partnerships with Kinetix AI for realistic avatar animations. The team is also experimenting with generative AI for game creation and considering AI-driven NPCs that can engage in intelligent conversations and strategies.
Evolving Monetization Models
The monetization landscape in Web3 is still in flux. However, The Sandbox has found success with its LiveOps game management system, which features regular in-game events and rewards. Following the success of its fourth season, the company plans to scale up its seasonal events from one major event a year to four, reflecting its adaptability in a changing market.
Recognizing Stablecoins’ Role
Borget acknowledges the significance of stablecoins in fostering business and enterprise adoption. The emergence of regional stablecoins, such as the Hong Kong dollar-pegged stablecoin, raises questions about the future dominance of the U.S. dollar in the Web3 space, especially as Asian alternatives gain traction.
Cultural Insights into Asian Gaming Markets
Borget emphasizes the deep integration of technology into the daily lives of people in Asian markets, noting the openness to adopt new technologies. He also highlights the importance of storytelling and branding in gaming, which resonate strongly with local audiences. To succeed in these markets, The Sandbox focuses on local engagement and content creation.
Anticipating Future Trends
At Consensus Hong Kong, Borget is eager to discuss the evolution of AI-powered virtual agents that enhance gaming immersion and the rise of app chains, reshaping Web3 gaming infrastructure. He also aims to explore the shifting global crypto landscape and the potential impact of new policies from various jurisdictions vying to become leading crypto hubs.
In summary, Sébastien Borget’s vision for The Sandbox is a testament to the transformative power of Web3 gaming and the vital role of cultural localization and technological innovation in shaping the future of this dynamic industry.
