OpenAI’s gaming studio acquisition

Hello hello! Welcome to all our new friends! And to our current friends – thanks for coming back for this week.

This week we are covering…

🔎 Why OpenAI bought gaming studio Gaming Illumination

🐱 Cool Cats debuts 3 NFT-inspired games

🎮 Gaming investment slowdown marked in Q2 of 2023: Report

Did you read this newsletter from anywhere that’s not your inbox?

Why OpenAI bought gaming studio Gaming Illumination [Link]

ChatGPT creator OpenAI has acquired Global Illumination, expressing excitement over the latter’s team joining the company to work on projects including ChatGPT.

The NY-based gaming studio - co-founded by engineers Thomas Dimson and Taylor Gordon along with designer Joey Flynn in 2021 - is the creator behind the MMORPG Minecraft-clone Biomes.

The likely why: The purchase has got people talking about OpenAI potentially getting into gaming, including developing customized environments or venturing into AIs for non-playable characters (NPCs). Global Illumination also has the metaverse tech that OpenAI can tap into.

Cool Cats debuts 3 NFT-inspired games [Link]

Cool Cats Group, the web3 company known for its eponymous NFT collection, is collaborating with gaming publishers nWay, iCandy, and Sync Studios to develop new games featuring the Cool Cats brand and characters.

These games are set to launch between late 2023 and early 2024 and aim to further establish Cool Cats as a global character brand and storytelling company.

What to look forward to:

• The collaboration with nWay will give rise to a competitive multiplayer arcade game, tapping into nWay's substantial experience in crafting acclaimed titles like Power Rangers: Legacy Wars and ChronoBlade.

• Joining forces with iCandy Interactive Limited will yield an in-browser, 2D endless runner game, capitalizing on iCandy's extensive global gaming audience and reputation for delivering engaging experiences.

• The venture with Sync Studios will result in a match3 game designed for mobile platforms, leveraging Sync Studios' track record of successful partnerships with industry giants like Hasbro and Warner Brothers.

Gaming investment slowdown marked in Q2 of 2023: Report [Link]

There’s only been $0.7B in total gaming investments for April, May, and June of 2023 - a 33.7% drop from the $1B for Q1, according to a newly released report from Digital Development Management (DDM) on financial activities in video gaming.

The finer details:

• Activity in the sector is a mixed bag: a decrease in M&As, IPOs, and investments, yet a show of the market’s likelihood of heating up in the months ahead.

• Q2 saw 127 deals, down 14% from Q1, with the following as the most active sectors by value: tech (24%), mobile and esports (19% each), mobile cloud gaming (18%) and console/PC (15%).

• Notable deals include the $50M funding by metaverse gaming firm Everdome, $48M for in-game advertising outfit Anzu, and an added $37M for blockchain gaming firm Mythical Games.

Where blockchain gaming investments stand: Down to $127M compared to $143M in Q1, investors reflect caution in the sector, despite web3 gaming investors being the most active, including Polygon and Animoca Brands.

Roundup: New blockchain and web3 games

• Gods Unchained has released Pauper, its new game mode which only allows common and rare cards to be used in order to create decks without incurring large costs. The mode is designed to test players' TCG capabilities and strategies, and will be available from Aug 15th for two weeks. Player preferences will be used to determine the most popular gaming choices.

• Zynga, the creator of FarmVille, has announced the upcoming launch of Sugartown, its 1st Ethereum-based NFT game. The game features 3 farm animals, creatures, a portal to another dimension, and 10,000 Ora NFTs that players will need to join the game. The exact release date is unknown, and the services are not intended for children under age 18.

• A team of 3 developers, led by Daniel Tompkins, the lead singer of the metal band TesseracT, has created the sci-fi odyssey game War Of Being using Unreal Engine 5. Players are tasked with finding and freeing obsidian statues of the band's 5 members. The game and the album of the same name are set to release in tandem on Sept 13.

🏃‍♂️Quick Hits

• Roblox faces another lawsuit as it’s accused of facilitating child gambling on its platform by two CA-based mothers. (Link)

• Indie game dev Polygonomicon releases a new gameplay trailer of its sword combat action game Varvarion - but with the players taking on enemies with an AI companion by their side. (Link)

• From Minecraft to FIFA Soccer, here are the best iOS games to play on the upcoming iPhone 15. (Link)

• Web2 game publisher Nekki announces its web3 foray via Fight Me, its 1st web3 stake in 2024. (Link)

• PLXYER Game Portal, a new web3 game distribution platform, seeks to provide a comprehensive space for both creators and players. (Link)

• Ethereum gaming token PRIME claims to defy the bear market with a 42% weekly surge. (Link)

• Aptos Foundation forges partnership with NEOWIZ and Intella X to redefine web3 gaming. (Link)

• Buildbox wants ordinary creators and aspiring game developers to create the visual narrative games of the future with its new tool StoryGames.AI. (Link)

• The Philippine police sounds the alarm on scams and hacks around play-to-earn crypto games. (Link)

• Meanwhile, Microsoft will pull the plug on Xbox 360's online store and marketplace next year, focusing on its latest consoles and subscription service Game Pass. (Link)

• NetEase Games, a major Chinese video game developer expanding to the West, forms T-Minus Zero Entertainment, a new game studio in Austin, Texas. (Link)

• Let'sMOD, specializing in user-generated microgames, launches a platform that marries rapid game creation and gen AI for a "revolutionary social play experience." (Link)

• Converging music and gaming, online dance producer Tokyo Machine launches a VR vinyl pop-up shop in Rec Room. (Link)

• Gaming is fast becoming the new social for Gen Alpha. (Link)

• This new AI suite is trained to streamline game production, generating more lifelike NPCs, storylines, and dialog. (Link)

• Russian operatives are said to aggressively push propaganda on online video game sites to boost domestic support for its war against Ukraine. (Link)

• Stardust launches Wallets-as-a-Service to enable game devs to integrate web3. (Link)

• In Dubai, streaming platform StarzPlay launches StarzPlay Fantasy Sports, touted as the 1st-of-its-kind game in the MENA region. (Link)

• Netflix will test games on select TVs and computers in a step to make them playable on more devices, the company’s VP of Games Mike Verdu says. (Link)

• Following its Roblox debut, online game Alpine Park’s parent firm expands to a younger fan base by adding a new AI character integration to the game experience. (Link)

• This 13K sq ft VR gaming space in Birmingham is the largest Sandbox VR venue in the world, complete with a hospitality offering. (Link)

• Epic Games teases Fortnite’s Season 4, slated for release on Aug 25, with millions of players eagerly waiting. (Link)

• Virtual realities can entail real-life dangers: How to protect yourself from crime in the metaverse. (Link)

• The BitNile metaverse launches casino game Blackjack in September, counting on the sale of in-world coins required to play the sweepstakes-based game. (Link)

💸 Funding & Partnerships

• Horizon Blockchain Games and Planet Mojo partner to innovate web3 tech, offering devs with increased capabilities and gamers with an immersive environment. (Link)

• While being console rivals, Microsoft’s Xbox and Sony’s PlayStation have formed an alliance in recent years on cloud-based gaming and AI, fending off competition from Amazon and Google’s cloud gaming services. (Link)

• Embracer Group is exploring external funding and divestment opportunities, such as Amazon's multi-year deal to fund the new Tomb Raider game. (Link)

• Aptos Foundation forges partnership with NEOWIZ and Intella X to redefine web3 gaming. (Link)

• Conductive.ai and Highstreet announced a strategic partnership for technical development to improve user experience and analytics. (Link)

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

--

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.

If you enjoyed this content, Subscribe here and stay informed via our Twitter to get your fix of metaverse gaming news. See you next Thursday!