Dialogue with Xterio Co-founder Jeremy Horn: From Web2 to Web3, a 15-Year Gaming Veteran's Journey of "AI+GameFi"

Questioner: Mia, ChainCatcher

Responder: Jeremy Horn, Co-founder and COO of Xterio

Editor: Marco, ChainCatcher

With the revival of the BTC ecosystem, the waves of AI and Meme sectors have come one after another, and the voice of "sector rotation" is gradually emerging in the crypto community. As a leader in the last bull market, the GameFi sector has also begun to attract attention.

During the bear market, the GameFi sector has accumulated some promising blockchain game developers and projects, and Xterio, which we are talking to in this issue, is one of them.

According to the April hot search list from the Web3 asset data platform RootData, Xterio has consistently ranked among the top.

At the beginning of April, Xterio announced a groundbreaking Layer 2 network called Xterio Chain in collaboration with AltLayer, supported by the stacks of Optimism and EigenDA, aimed at defining the growing AI-based Web3 gaming world. By the end of April, Xterio announced that BNB Chain, along with Xterio and AltLayer, would launch a new game-centric L2 chain that will use BNB as the Gas Token.

The backing of BNB Chain has pushed Xterio's development momentum to new heights.

When it launched in 2022, Xterio had already completed $40 million in financing, led by FunPlus, Makers Fund, and XPLA, with participation from WEB3 investment institutions such as Animoca Brands, HashKey, and Foresight Ventures. In 2023, Binance Labs invested $15 million to support its AI and Web3 game development capabilities and the launch of its token.

Currently, the Xterio platform has launched four self-developed blockchain games, including Overworld and AGE of Dino, and has rolled out 50 game projects, including collaborations.

Xterio also launched the game-centric marketplace Xterio Marketplace last October.

Recently, ChainCatcher invited Xterio co-founder and COO Jeremy Horn to provide an in-depth interpretation of how Xterio transitioned from the Web2 gaming industry to the Web3 space and to share insights on its emergence as a new dark horse project in the GameFi sector.

Jeremy Horn graduated from Asas University and has been in the gaming industry for over ten years. He previously participated in the development of Web2 games such as "Harry Potter: Hogwarts Mystery," "Star Wars: Smuggler," "Family Guy: Quest for Stuff," and "Marvel: Avengers Academy," possessing rich game development experience.

From Traditional Gaming to GameFi Sector

ChainCatcher: Why did you transition from the traditional gaming field to the Web3 GameFi sector?

Jeremy Horn: Throughout my 15-year career in the gaming industry, I have witnessed the rapid development and significant changes in the industry, particularly the rise of the free mobile gaming market and the challenges that followed. With tech giants like Google and Apple introducing privacy policy changes, along with rising CPI costs and increasing market competition, game publishing and operations have become increasingly complex.

However, the rise of Web3 gaming has brought revolutionary changes to the industry. Web3 games build a new bridge between developers and players, characterized by promoting lasting user engagement, ownership of digital assets, and cross-game asset liquidity. This model not only enhances user engagement and retention but also stimulates asset trading, encouraging players to explore new games, thereby improving the cost-effectiveness of player acquisition.

ChainCatcher: Xterio has been selected as one of the Top 20 projects in the GameFi sector by RootData in 2023. As a popular project in the GameFi sector, how is Xterio empowering the GameFi space?

Jeremy Horn: The recent awards Xterio has received, including being recognized as a popular project by RootData and acknowledged as a leading GameFi project, highlight Xterio's significant influence in the gaming industry.

Currently, Xterio's tech stack includes features such as simplified wallet accounts, launchpad functionality, integrated marketplaces, and bridging solutions. By integrating AI technology, Xterio is able to innovate the gaming field by creating immersive, AI-enhanced experiences that attract players into the Xterio Web3 ecosystem and maintain user engagement and activity.

We aim to establish Xterio as a creator of accelerated AI-driven interactive experiences and develop an AI toolkit that generates consistent, high-quality 2D and 3D assets. The "AI Emotion Engine" aims to provide users with meaningful companionship, elevating the gaming experience beyond traditional gameplay, which positions Xterio to compete with traditional free games while embracing the transformative potential of AI-driven game development.

ChainCatcher: As a cross-platform play-to-earn developer and publisher, Xterio has released and is developing games including Overworld and Age of Dino. What type of game projects does Xterio prefer in game development?

Jeremy Horn: Xterio's development philosophy is built on innovation and quality, with a particular emphasis on exploring AI-driven game development. Xterio is committed to supporting teams by providing publishing and organizational resources.

While Xterio has achieved significant success in 4X strategy and RPG game types, the team will continue to drive innovation, pushing Xterio beyond traditional boundaries. Over the years of dealing with games, we have come to realize that breakthrough games often come from creators who dare to challenge the status quo, and innovative game projects are Xterio's top choice.

ChainCatcher: From the perspective of a game developer, how do you create a perfect in-game economic model to avoid the death spiral?

Jeremy Horn: Regarding the so-called "death spiral," I firmly believe that this phenomenon will not exist within Xterio's framework. When designing in-game economies and Web3 economic models, we rely on deep industry experience and market insights to build a model that ensures a delicate balance between economic input and output while providing players with a comprehensive and meaningful gaming experience.

In the Xterio ecosystem, the LTV (lifetime value) of each product is crucial. We are committed to ensuring that products continuously attract users and remain vibrant by balancing the consumption of utility value with user rewards. Excessively high rewards may trigger inflation, while excessively low rewards may weaken user engagement, so we always consider the balance between these two factors as a core consideration when designing economic models.

To ensure the sustainable development of the ecosystem, we will focus on supply-demand balance during the monitoring and operation of games. By continuously adjusting economic parameters and strategies through data analysis and market feedback, we ensure the reasonable allocation and effective utilization of resources.

At the same time, we will actively communicate with the community, listen to their voices and suggestions, and work together to promote the healthy development of the ecosystem.

Launching the Layer 2 Network Xterio Chain

ChainCatcher: What impact will the collaboration between Xterio and AltLayer to create the Layer 2 network Xterio Chain have on Xterio?

Jeremy Horn: The close strategic partnership between Xterio and AltLayer not only allows Xterio Chain to stand out among numerous blockchains, ranking fourth in daily transaction volume across all chains, but also secures its position as a leader among various Layer 2 solutions.

Moreover, Xterio Chain has gained widespread recognition in the market due to its extremely fast transaction speeds and very low gas fees. This advantage not only attracts a large number of users but also encourages over $2.5 billion in ETH to choose to re-stake on our chain.

Integrating Xterio Chain into our ecosystem sends a strong signal to the market: Xterio is committed to leveraging the latest technology to provide users with a seamless and smooth gaming experience. The introduction of Xterio Chain, combined with Xterio's ongoing innovations in AI technology, provides developers within the Xterio ecosystem with creative space. Game developers can utilize these advanced technologies to create engaging and scalable game products, offering users a richer and more diverse gaming experience.

Through Xterio Chain, we provide developers with one of the most comprehensive tech stacks for creating immersive gaming experiences and scalable Web3 games. This tech stack not only includes core blockchain technologies but also integrates cutting-edge technologies such as AI and cloud computing, providing developers with strong technical support and vast innovation space.
Therefore, the integration of Xterio Chain will attract many excellent developers to the Xterio ecosystem, jointly promoting the rapid development and significant growth of the gaming industry.

ChainCatcher: According to the team's roadmap, what will be the next steps?

Jeremy Horn: Our development plan aims to continuously solidify Xterio's leading position in the market and further expand the influence of Xterio Chain: The release of the Overworld web3 experience version will bring players a broader and more realistic gaming world; the AI game debut of Palio will showcase the limitless possibilities of AI technology in gaming; and the launch of the new game City Shadow beta version signifies that we will continue to bring more exciting game content to players.

In addition to providing players with opportunities to earn rewards in games, Xterio is more focused on how to create long-term holding value. We understand that only by allowing players to gain real joy and satisfaction from the game while retaining the rewards they worked hard to earn can we foster a deep emotional connection to the game. Therefore, Xterio will continue to strive to create more attractive game content for players, enabling them to enjoy the game while achieving their own value growth.

2024 May Become the Next GameFi Year

ChainCatcher: Currently, the industry is discussing that 2024 may be a new year for GameFi. Will Xterio also make corresponding adjustments and accelerate project development in line with the development of the GameFi field?

Jeremy Horn: We are extremely optimistic about Xterio's core role in the growth of the GameFi sector in 2024 and beyond, primarily due to the exceptional value of our flagship games. For example, "Age of Dino," a high-energy strategy experience game, is the first AAA strategy mobile game to integrate Web3 features, achieving significant innovation in the gaming field and providing players with on-chain transactions, rewards, and trading experiences.

In the rapidly evolving Web3 environment, adaptability has become a key factor for market presence.

ChainCatcher: Additionally, what do you think the development trend of GameFi will be this year?

Jeremy Horn: We foresee a significant shift where using incentives to lower player acquisition costs will become mainstream. This trend has already begun to emerge and is expected to accelerate in the future.

Xterio focuses on the integration of AI and blockchain technology, and the combination of these two technologies will bring revolutionary changes to the gaming industry.

As the industry continues to develop, games in the GameFi sector will become more immersive, providing players with unprecedented gaming experiences through enhancements from AI and Web3 technologies. Players will be able to immerse themselves in more realistic virtual worlds and engage in deeper interactions with characters and scenes in the game. At the same time, these technologies will offer players more meaningful interactions and growth opportunities, allowing them to realize their self-worth in the digital realm.