Blizzard taps into generative AI

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This week we are covering…

🤖 Blizzard tapping into generative AI

👨🏽‍💻 Casual gamers key to evolving metaverse

🤔 The Sandbox still bullish on the metaverse

💭 New think tank, Apple Pay integration, and more

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Blizzard tapping into generative AI [Link]

The game studio behind Diablo, World of Warcraft, and Overwatch is dabbling with generative AI as part of game development, the New York Times reports.

The move was announced internally in April in an email from Blizzard's chief design officer, Allen Adham, urging staff to prepare to be amazed as the company gets “on the brink of a major evolution” in its way of building and managing its games.

The game maker’s moves in AI: Blizzard has deployed its own AI tools internally, with some employees reportedly saying the AI tech falls short in catching bugs or interacting with games.

It also appears to take a page out of the Apple and Samsung playbook, warning employees against using third-party AI programs for work, fearing the loss of confidential company data and intellectual property.

Other game makers that have openly acknowledged their use of AI include FIFA, which launched a mobile AI-powered World Cup Soccer game last month.

Casual gamers key to the evolving metaverse [Link]

Stephen Gray from Meta’s Facebook Gaming, in a virtual session at GamesBeat Summit 2023, shares his takeaways from a new industry study:

• 50% of all gamers know what the metaverse is, a number mostly driven by the hardcore gamer.

• Gamers are already involved in the metaverse and adjacent-tech experiences, with about 1/3 using VR and AR, and nearly 50% using cross-platform play.

• While they are familiar with crypto and NFTs as they are of the metaverse, gamers’ sentiment is not as positive.

Casual gamers emerge as an important player in the metaverse’s progress, and it appears they are far more interested in non-gaming metaverse experiences like virtual travel.

Why this matters: The study results show gamers are hardly a monolith, with a broad diversity becoming more and more apparent in the community. Sentiments, which can fuel innovation and much-needed reforms in the space, vary across gamers, from the players at the hyper casual end to the AAA console, publisher, and developer side.

Amid funding downturn, The Sandbox co-founder still bullish on the metaverse [Link]

Even before investors’ whetting appetite for risky bets in web3 and metaverse, raising capital hasn’t been an easy road for web3 gaming firm The Sandbox, where a funding round took co-founder and COO Sebastien Borget and co-founder Arthur Madrid nearly a year to close.

Yet determined to run the company “like a long marathon of many sprints,” Borget stays bullish on the metaverse, raising the following points:

• The metaverse will still become a multi-billion dollar business as multiple industries enter the embryonic space, with Borget expecting growth to be in the double digits, partly fueled by the AI boom.

• “[W]e’re going to showcase that The Sandbox is resilient and not depending on tech or crypto market crash.”

AI as an important context: Amid tech’s shifting attention from virtual worlds to generative AI, Borget says AI can help make the metaverse a safer space by helping filter out offensive language from in-game conversations.

The Sandbox is already dabbling in AI, partnering with entities on AI-driven gaming features and looking to partner, invest and potentially acquire AI companies that can help improve its metaverse game and software.

Improbable’s new metaverse think tank [Link]

British unicorn Improbable’s newly launched think tank, The Metaverse Society, explores the impact of the metaverse, creating practical applications, clarifying misconceptions and managing risks to ensure responsible use. Its detailed program of activities will be unveiled at the end of June.

Herman Narula, Improbable founder and CEO, cites the vision:

“We want to contribute to ensuring the metaverse holds its promise of being a network of meaning that unlocks creativity, social interaction, and economic opportunities, free from gatekeepers.”

The company will bring its own research portfolio to the think tank, including studies on potential metaverse sectors, a report on European regulation, and a research memo that sheds light on its evolving strategy.

What this shows: The think tank and the accompanying memo come as part of a strategic shift for the Softbank-backed company, which has redirected its focus exclusively to the commercial metaverse, abandoning plans to develop its own video games and closing its US defense arm.

StepN: 1st blockchain gaming app to integrate Apple Pay [Link]

StepN, a move-to-earn app developed by Find Satoshi Lab (FSL), claims to be the first blockchain gaming app to integrate with Apple Pay. Announced on May 22, the move is expected to simplify access to StepN products and drive further user growth.

Why this is news: StepN's integration with Apple Pay simplifies web2 and web3 transactions, enabling users to add credit/debit cards to their iPhone Wallets for secure, convenient payments.

To FSL co-founder Yawn Rong, this opens StepN to a wider audience and advances the mainstream accessibility and adoption of web3.

🏃‍♂️Quick Hits

• The Transformers’ Optimus Prime is coming to Fortnite next season. (Link)

• Arm’s new mobile computing platform aims to deliver improved AI, 3D, and gaming to 2024 phones. (Link)

• Dozens of upcoming web3 titles are joining gamers, developers, and Twitch streamers at the 3XP Gaming Expo. (Link)

• Classic party game Twister Air swaps its polka-dot plastic mat for an AR app. (Link)

• To dao5 founder Tekin Salimi, smaller independent studios would likely be the first to embrace web3, followed by smaller publishers and then the largest firms. (Link)

• Coca-Cola and game developer Riot Games debuts a gaming-inspired limited-ed product, Hero’s Arrival, in China. (Link)

• Bungie revives its Marathon IP to create a new sci-fi PvP extraction shooter. (Link)

• Gods Unchained aims to follow Axie Infinity and NFL Rivals by launching a mobile version on Android and Apple devices. (Link)

• Illuvium: Overworld Private Beta 2 gets upgraded with NFT and more. (Link)

• Fortnite unveils new outfits and accessories to give gamers a taste of the Spider-Verse. (Link)

• PlayStation is betting big on new franchises and live service games, with 12 currently in production. (Link)

• Niantic mulls over TikTok’s influence on gaming and their partnership to launch the developer’s brand-new IP Peridot. (Link)

• AI-powered Zamit launches game design internship for high schoolers. (Link)

• Catheon Gaming infuses generative AI into its flagship project Seoul Stars. (Link)

• Harnessing AI for content moderation, Xbox reports a 450% increase in player punishments over "vulgar" content. (Link)

💸 Finance & Partnerships

• Meta pursues AR partnership with Magic Leap. (Link)

• Trinity Gaming partners with metaverse entity Everdome to build the first Mars community virtually. (Link)

• AI avatar firm Buzzar partners with Cypher Capital to develop web3 games. (Link)

• Openfort raises $3M for a “frictionless” web3 gaming wallet. (Link)

• Web3 gaming startup Arena of Faith raises $1.75M in a seed round. (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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