🎮 Metaproof Gaming

Hey frens, this is Jacob from 🎮 Metaproof Gaming, the weekly newsletter where we keep you informed on how the metaverse and web3 are changing the gaming industry.

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💌 A quick thanks to our friends…

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📲 By the numbers

The gaming landscape, while going strong into the web3 and metaverse realm, has also seen highs and lows in previous years: (Source)

• The last quarter of 2022 has marked a significant drop in games-industry VC, with 62% fewer deals at an 82% decrease YoY. Despite the decline, its $13.3B in deal value is almost 4 times the size compared to 2019's $3.9B.

• The decrease in investment in 2022 is viewed as a small adjustment in the market after a significant surge in VC gaming investment in 2021, where worldwide VC deal activity in the gaming industry more than doubled from $7.4B in 2020 to $16.6B in 2021.

• The overall gaming market is estimated at $447.3B as of 2022, with a compound annual growth of 5.9%.

📫 News & trends

🤔 Rockstar Games to launch GTA 6 metaverse with in-game cryptocurrency?

2022 leaks have revealed that the development of Grand Theft Auto 6 (GTA 6) is underway. According to SeekingAlpha, its creator Rockstar Games’ parent company Take-Two Interactive could position the upcoming game as more than just a traditional game and morphing into a platform, with potential metaverse and cryptocurrency integration.

GTA Online has already introduced some metaverse elements, and it seems likely that GTA 6 will follow suit. The success of GTA 6 is crucial for Take-Two Interactive, with developers aiming to surpass the sales record set by GTA 5 - $1B made in three days - by making the new game more robust and targeting earning $1B in a day or two. The inclusion of the metaverse and cryptocurrency in GTA 6, however, is not confirmed until the game’s eventual release.

🤩 Large Japanese firms to develop the ‘Japan metaverse economic zone’ 

The ambitious collaboration among Japanese giants Mizuho, Mitsubishi, and Sumitomo Mitsui to create metaverse infrastructure Ryugukoku is a clear path toward advancing Japan’s metaverse plans, starting with the creation of the Japan Metaverse Economic Zone. The promise: offer users a cutting-edge RPG-like experience. Details we know so far:

• Former Square Enix director and JP Games CEO Hajime Tabata will take the lead in this project meant to “revamp Japan via the strength of games” through an “industrial design effort that takes advantage of gaming technology.”

• Japanese banking behemoth Mizuho has pledged to construct the foundation for “metaverse coins,” while Mitsubishi – the global partner responsible for “enhancing the international and economic landscape – will provide aid in designing the “multi-magic passport” (MMP), an authorization paper having a payment characteristic that enables people to traverse back and forth in between metaverse services in Ryugukoku.

• Eventually the service will extend beyond Japan to other jurisdictions and governments, helping to “expand the Japan Metaverse Economic Zone globally.”

💵 Avalon raises $13M to build an interoperable digital universe

In a new funding round, gaming company Avalon - founded by leaders from popular games including Call of Duty, Diablo, and Assassin's Creed - has raised $13M to build a platform for games that could potentially utilize the metaverse. It aims to use its team's unique experience to solve the challenges that creators and designers may face in the near future.

Avalon plans to develop its platform that will enable game developers to take advantage of the growing interest in the metaverse and expand its team to further explore the virtual realm’s potential. The company - whose funding round was led by Bitkraft Ventures, Hashed, Delphi Digital, and Mechanism Capital - is just one of many preparing for a future where virtual worlds will play an increasingly significant role in gaming.

✨ Gaming engine Unity taps MetaMask, Immutable X and Solana for web3 developer tools

Unity takes its turn in revolutionizing gaming with its new "decentralization" category in its online storefront - providing game developers with the resources needed to connect with the exciting world of web3 gaming. With 13 different blockchain-based software developer kits (SDKs) now supported (from chains and products including Algorand, Aptos, Dapper Labs’ Flow blockchain, Immutable X, MetaMask, Solana and Tezos), Unity is making it easier than ever for developers to create their own games. Plus, developers have access to a range of tools, such as asset management and wallet integration, allowing them to create innovative games without having to learn complex code.

❓What are web3 games, and how do they work?

Web3-based gaming uses blockchain technology to create secure, transparent, and user-controlled assets within games, allowing for the rise of P2E models, DAOs, crypto-secured wallets, and metaverse innovations while enabling players to own, trade, and earn cryptocurrency for playing and leveling up. Some of the unique features of web3 gaming:

• High transparency and accessibility through peer hosting

• True player ownership and control over their in-game assets

• Income generation while reaping in-game achievements

• Easy tracking of ownership and transaction history of digital assets

More innovative and immersive games, increased adoption of cryptocurrency payments, and more opportunities for players and developers to participate in the decentralized gaming ecosystem are expected to emerge as technology and infrastructure for web3 gaming become more refined.

🐵 Grease Monkey Games partners with Mishimoto for Torque Drift 2

Grease Monkey Games has partnered with automotive parts company Mishimoto to create exclusive NFTs for its upcoming blockchain-based racing game, Torque Drift 2, set to release in 2024 on PC with console availability later. This collaboration is poised to expand the game’s web3 capability and drift racing simulation experience, Grease Monkey Games’ parent company Animoca Brands said in a statement.

Mishimoto will be bringing its expertise in automotive parts and technology to the game, allowing players to customize their vehicles with high performance parts and accessories. This will give each player a unique experience and help them stand out from the crowd. This is just one of the many ways that Grease Monkey Games is striving to make Torque Drift 2 the ultimate racing experience.

😱 Blockchain-powered gaming company Affyn adds new virtual lands to the Nexus world metaverse

Affyn, a blockchain and AR-based mobile metaverse game that resembles Pokemon GO, has released 1,750 virtual land plots across the United Kingdom and Ireland, with 750 plots in London and 500 plots in Glasgow and Dublin. Users who are eligible to participate in the Affyn ecosystem can claim virtual land by planting their "Flags" in the NEXUS World Metaverse - the lands come in varying levels of rarity ranging from common to mythical, each offering a different level of value.

The platform also features NFT characters called "Buddies," which represent digital characters in its metaverse. These collectibles are available for sale on Affyn's NFT marketplace and OpenSea, and players can compete against each other to hunt down Buddies on different Lands to enrich the game’s competitive aspect.

🏃‍♂️Quick hits

• Polygon is gaining momentum among gamers adopting the technology for web3 gaming experiences, with its high throughput and low transaction fees considered key in its attractiveness among developers and players.

• Roblox's 2022 revenue increased by 16% from previous year and reached $2.2B, while its bookings generated from virtual currency sales increased by 5% to $2.9B. It also set a new record of 65 million average daily active users in January, who spent more than 5 billion hours engaged with the platform or a 19% increase from the previous year.

• Gaming giant Electronic Arts founder Trip Hawkins has joined Barcelona, Spain-based gaming startup Games for a Living (GFAL) as its chief strategy officer, expressing the company's intention to utilize blockchain for improved game performance and fun.

• ArchLoot is gearing up to unveil its groundbreaking web3 game introducing interactive NFT gameplay and on-chain implementation of upgradeable NFTs, debuting globally at a launch party in web3 gaming hotspot Vietnam.

• GameSwift has released a user-friendly web3 gaming platform that features a passwordless sign-on system to ease the transition for players dabbling in blockchain gaming.

• NFT trading platform JumpTrade has partnered with RaddX Racing to create NFT-powered racing games offering elements of garage, decals and other personalized cars to gamers.

• Social gaming firm Arrivant is unveiling its first “Microverse,” a social approach to the metaverse deemed integral to its upcoming UE5 game, Project Eluüne: StarGarden. (Source)

💸 Finance buzz

• Worldwide Webb secured $10M in a series A funding round, the game's first external funding since its 2020 debut. (Source)

• NFT marketplace ZUNAVERSE partnered with mobile gaming and metaverse platform MetaSetGO to facilitate new experiences for crypto, NFT, and P2E gaming enthusiasts.(Source)

• In India, gaming industry veteran Manish Agarwal and web3 investor Ishank Gupta raised ₹160 crore ($20M) in a seed round for a new web3 gaming startup called Kratos Studios. (Source)

• The Nigerian metaverse gaming industry is gaining momentum, with one provider raising $3.2M in a seed round through a token offering. (Source)

🗣️ Quote of the week

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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