AI gaming on Roblox and Decentraland

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This week we are covering…

🎮 Roblox, Decentraland tap into AI for richer metaverse gaming

💬 New GTA 5 mod lets players talk to NPCs

💪 Street Fighter video game, AI style

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Roblox, Decentraland tap into AI for richer metaverse gaming

Some of the world’s most popular metaverses are embracing AI:

• Roblox, during its Q2 2023 earnings call, cites its embrace of gen AI tools as it enters “an exciting new period” on its platform, with the ultimate goal of having users make their avatar or clothing 100% via text prompts - created in real time. Roblox players will be able to create new worlds and games by typing what they want to see, then AI will take it from there to create new content, may it be text, image, or music.

• Decentraland pumps more life into its Ethereum-based world as its developers partner with AI startup Inworld to bring in AI-powered non-player characters (NPCs) and equip creators with the same capability in their owned spaces. For starters, 3 NPCs are featured at Decentraland’s Genesis Plaza, each working like a chatbot to respond to queries on the go. Users are given full control over the NPC's dialogue style, voice, and personality, to name a few.

Why AI? AI can polish the immersive experiences offered by metaverse games. This move for richer, more dynamic gaming isn’t a novel one; Meta has cited AI’s potential for its array of metaverse offerings, while web3 startup Oncyber already integrates such functionality.

New GTA 5 mod lets players talk to NPCs [Link]

A unique Grand Theft Auto 5 (GTA 5) mod is taking gaming immersion to the next level by allowing players to engage in real-time conversations with NPCs using their microphones.

Created by modder Bloc, the Sentient Streets mod employs 30+ AI models to enable players to interact with characters in the game world by asking questions. The AI interprets the queries and responds with voice-generated answers, enhancing the immersive role-playing experience.

Key points to know about the mod:

• The mod introduces an AI-powered conversation system, allowing players to engage NPCs in open-ended discussions using their microphones.

• Players can ask characters questions, learn about their backgrounds, opinions, and more, contributing to a lifelike and dynamic game environment.

• The mod's storyline centers around a fictional cult called The NihilAIsts, who worship an AI as their deity, believing they exist within a game.

Paris Hilton’s Slivingland launches on the metaverse [Link]

Model, socialite, and serial web3 investor Paris Hilton launches the metaverse experience Slivingland on Roblox, with the creators banking on Hilton’s 70M-strong following on social media and the title “queen of the metaverse” given to her by CNN.

Slivingland is a combination of “slaying” and “living your best life,” and on Roblox fans can gather there for Hilton’s wide range of entertainment content including music, podcasts, films, TV shows, and brand collabs.

What Slivingland attempts to do is bridge the gap between Hilton and Gen Z, digital natives who spend time in the metaverse and are a common target of these strategic brand activations.

Hilton was among the 1st celebrities to hang out on Roblox in 2021, well before other personalities stepped into the metaverse and new gaming platforms and virtual worlds.

Street Fighter video game, AI style [Link]

Celebrity Street Fighter, a pixelated video game that honors celebrities and has garnered Reddit's admiration, is once again sparking gamer nostalgia - this time with a little help from AI.

Classic Street Fighter style comes alive as iconic figures take their place in this AI-crafted battleground. The roster extends with:

• Donald Trump's clenched fists and imposing presence, with Pope Francis's fiery action pose, represent a diverse array of characters.

• Elon Musk's red vest and Peter Dinklage's cartoonish charm showcase their unique attributes within the game.

• Mark Zuckerberg's snug vest and Lizzo's portrayal exude empowerment and creativity, infusing each virtual move with artistic expression.

• An avatar-style Kanye West and the provocative inclusion of Justin Trudeau in blackface.

The virtual spotlight now shines on the game as Reddit's vibrant community passionately express their eagerness to dive into this universe, lauding its blend of hilarity and awe.

Blockchain's impact on gaming bared [Link]

The gaming industry is being revolutionized by blockchain tech, enabling the advent of "crypto gaming." This merger of blockchain and traditional gaming platforms has spurred a new wave of innovation.

Notable advantages of using decentralized connections:

• Safety and efficiency: Benefits include enhanced security due to decentralized connections, user data encryption, and removal of vulnerable central systems, providing improved protection against cyber threats.

• Transparency and empowerment: Blockchain's distributed ledger enables users to easily track financial transactions and resources, providing transparency that benefits users through increased trust and accountability in gaming.

• Tokenization and investment: Blockchain-powered gaming has enabled secure payments via local crypto tokens, simplifying online transactions and allowing players to easily acquire avatars. These tokens also serve as investment vehicles, being tradeable at any time.

🏃‍♂️Quick Hits

• Persona 5: The Phantom X introduces a new feature that allows the player character, Wonder, to wear different outfits outside of the metaverse. (Link)

• Nakamoto Games, boasting a vast 200+ game portfolio, unveils the Spooky Run 2.0 Tournament. (Link)

• Non-playable characters were first coined in 1975 by the Dungeons and Dragons game. What’s the future of AI-powered NPCs? (Link)

• India and Southeast Asia’s free-to-play gaming platform Nostra incurs a monthly active user base of 82M+ gamers. (Link)

• Web3 horse racing phenomenon Zed Run introduces sit ‘n’ go tournaments, set to launch in September. (Link)

• The Supreme Court’s decision favors Apple, allowing them to appeal against Epic Games’ injunction and maintain App Store guidelines to prevent iOS apps from directing users to external payment systems. (Link)

• Broadway musical Hamilton makes its virtual debut on Roblox, transforming the renowned musical into an interactive online game. (Link)

• This Sony patent enables VR headsets to detect and emulate real-world objects. (Link)

• In the metaverse, where VR and real-world security collide, cyber threats lurk like playful avatars. (Link)

• Roblox shares plummet nearly 20% as it misses estimates for Q2 bookings amid waning demand for its online games and intensifying

  competition. (Link)

• Aavegotchi releases its all-new Margin’s Blade webcomic. (Link)

• Saudi Pro League signs deals with broadcasters for rights to screen its games in 170+ countries. (Link)

• Nvidia's RTX GPUs were largely known for gaming and graphics, but are being configured and repackaged for enthusiasts trying out AI on desktops. (Link)

• After signaling its intentions to expand into cloud gaming, Netflix launches a new app that will soon allow subscribers to play games on their TV. (Link)

• Gala Games relocates its unsold and reserved NFT game items from the Ethereum network to GalaChain, allowing gamers to use their NFT game items without paying Ethereum gas fees. (Link)

• The Bornless opens a new frontier in multiplayer horror gaming. (Link)

• India’s Mobile Premier League cuts its staff by 50% in the wake of New Delhi unveiling a 28% tax on online real-money games. (Link)

• From Square Enix to Ubisoft, here are the biggest publishers building NFT games. (Link)

• Crucible’s Emergence SDK for Unity game developers launches - why do interoperable avatars matter? (Link)

• The world’s next Holocaust museum, dubbed as Voices of the Forgotten Museum, finds a home in Fortnite. (Link)

• Metaverse game Neopets, based on the popular 1999 pet simulator, repurposes its assets for a new mobile game offering. (Link)

• Inspired by Hollywood, Bollywood, Hong Kong cinema, and beyond, the battle royale game Mighty Action Heroes packs web3 thrills into blockchain-tradable, collectible NFTs. (Link)

• Athletes, fans, brands, and game devs can tap into LootMogul’s open AI architecture to create non-player characters (NPCs) or AI avatars. (Link)

💸 Funding & Partnerships

• In July, investors pumped $29M into the fledgling crypto video game industry, but metaverse NFT sales have slowed significantly. (Link)

• Xsolla teams up with Crypto.com to integrate cryptocurrency checkout solutions for gamers. (Link)

• Windup Minds raises $1.6M in pre-seed funding for a game studio focused on virtual pet games in VR and MR. (Link)

• Cyprus-based investment firm Gem Capital to inject $49.3M (€45M) into game studios in Eastern Europe over the next 2 years. (Link)

All content on this newsletter is for informational purposes only and does not aim to serve as or replace expert investment advice.

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If you are a startup building in the metaverse / web3 ecosystem and are raising capital, please reach out to Sfermion. Sfermion is an investment firm focused on accelerating the emergence of the metaverse.

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