Sega’s cold web3 heart

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This week we are covering…

🏳️ Sega steps back from blockchain gaming

⚾ Improbable mounts MLB virtual ballpark

🤔 How do you solve a problem like AI in gaming?

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Sega steps back from blockchain gaming [Link]

Prominent gaming studio Sega Corp. has chosen to safeguard its content by denying its major franchises to external blockchain gaming ventures and halting its own blockchain game production.

Due to the digital currency market downturn, the company will allow external partners to use its lesser-known characters for NFTs, despite initial criticism from gamers regarding the environmental impact of crypto tech.

Such decision to back off on developing a lot of its own games into web3 games and instead rely on third parties reflects in its new partnership with Line Next, which has teamed up with Sega to make a Web3 game for the blockchain gaming platform Game Dosi.

Sega's Co-Chief Operating Officer Shuji Utsumi has expressed dissatisfaction with P2E games and uncertainty about the company's exploration of web3, a shift in strategy that reflects a broader trend in cooling enthusiasm for web3.

Sega, however, appears to support some blockchain games with lesser-known franchises and remains open to future involvement in blockchain as it matures, demonstrating adaptability.

Improbable mounts MLB virtual ballpark [Link]

Improbable has developed a virtual ballpark for MLB's All-Star Celebrity Softball Game, providing fans with an authentic baseball experience on MLB.com.

Alongside the All-Star Futures Game and the Celebrity Softball game at Mobile Park in Seattle, the virtual event kicked off Saturday, taking place on Improbable's M2 platform and accommodating up to 20,000 fans for interactive participation as driven by advanced tech like 3D audio and lifelike crowd interactions.

Why MLB is ahead of the game: MLB is the 1st pro sports league to mount a virtual space for increased fan engagement during the game.

This collaboration - where fans had the chance to create their avatars, play mini-games and a scavenger hunt, and get the chance to win World Series tickets - marks MLB's entry into the metaverse, demonstrating its commitment to digital tech for enhanced fan engagement.

How do you solve a problem like AI in gaming?

The buzz around Valve's potential ban on games featuring AI-generated content has prompted the company to issue a statement clarifying its position. Contrary to rumors, Valve stated that it has no plans to ban AI art in games.

As a company known for its libertarian approach, Valve aims to impose minimal restrictions on content sold on its platform, Steam. The company expressed support for innovation and the use of AI in gaming, but developers must obtain proper licenses and not infringe on existing copyrights.

Complexities around AI tools continue with AI Dungeon, powered by OpenAI's GPT-3, raising concerns about ownership. Copyright laws currently grant authorship to humans, leaving uncertainty regarding AI-generated content.

The vague end-user license agreement by Latitude, the creator of AI Dungeon, appears to pose unique challenges as AI models may unintentionally incorporate copyrighted work. The use of AI tools like GPT-3 blurs the line further, with players potentially unknowingly using others' work.

The industry seeks clearer legal frameworks to address copyright concerns in this evolving landscape.

Gaming giants weaponize AI for next-gen games [Link]

Video game studios are using generative AI to automate tedious aspects of game design, like NPC dialogue and rendering detail, in order to accelerate development and redirect human talent to more critical tasks.

Here’s how some game developers are already using AI:

• Ubisoft: The creator of Assassin's Creed has launched Ghostwriter, an AI tool that assists game developers in generating first draft non-player character (NPC) dialogue. Ghostwriter allows writers to focus on story development, while AI generates NPC dialogue, also known as "barks." Ubisoft aims to enable designers to create customized AI systems using a back-end tool called Ernestine.

• Roblox: They have introduced 2 generative AI tools, Code Assist and Material Generator, to streamline game creation by automating coding tasks and generating object textures based on prompts, making the creative process more efficient.

• Blizzard Entertainment: The studio behind popular titles like Diablo and Overwatch has reportedly experimented with AI to create in-game character renderings, as well as developed an internal AI tool to prevent the leakage of confidential company data and IP. While Blizzard execs see potential in AI for future games, some employees have aired concerns about the tool's effectiveness in identifying bugs and game issues.

Bid for seamless movement in blockchain gaming worlds launched

The Swiss-based Open Metaverse Alliance for Web3 (OMA3) has launched the IWPS project, aiming to create standardized infrastructure for seamless travel through the metaverse.

OMA3's position paper on IWPS details its significance and implementation process which are accessible on Github. IWPS facilitates inter-metaverse navigation among platforms such as Alien Worlds, My Neighbor Alice, Sandbox, Space, Superworld, and Upland.

The project requires collaboration from the web3 metaverse community, with OMA3 welcoming comments and contributions on Github and inviting interested organizations to join OMA3.

Further in the web3 gaming space, London-based Telescope Labs has launched an analytics tool featuring GPT-4 AI, which grades 2,000+ web3 games and supplies 37 KPIs. GPT-4's advanced reasoning capabilities are believed to exceed traditional data analysis, helping to compare growth patterns and anticipate future trends more precisely.

Telescope Labs' CEO Semih Gilan notes:

"The plugin’s combination of extensive and diverse data, sophisticated reasoning, user-friendliness, and instant responsiveness revolutionizes web3 gaming and blockchain.”

🏃‍♂️Quick Hits

• Wimbledon’s All England Lawn Tennis and Croquet Club (AELTC) venture on to the virtual court with a volley of themed games, apps, and clothing lines. (Link)

• Women wanting to get fit are getting chummy with VR headsets; Apple plans to incorporate workout content and Fitness+ into Vision Pro. (Link)

• “I don't think anybody's job on the creation side is going to be taken by an AI, but it will get taken by a human using AI." - John Riccitiello, CEO of Unity Technologies (Link)

• Might these be top metaverse casino games for crypto and NFTs, on top of VR fun? (Link)

• A popular casual gaming pick, digital pool games leap into the NFT world with Eyeball Pool. (Link)

• Traditional game publishers are looking to web3 tech more than ever before, empowering players with greater control and ownership of their gaming experiences. (Link)

• Deepdub Go - a new AI-powered audio-video localization and creation platform aimed at indie game studios, advertising agencies, online learning platforms, and content creators - lets users dub in 65 languages. (Link)

• A new Roblox game inspires tweens, teens, and their families to explore the Western Cape in Africa this winter. (Link)

• Web3 platform MYTH introduces Infinite Redeemers, unique entities that generate Spellbound assets for enhanced game mechanics and empowered players. (Link)

• Animoca Brands forms a strategic alliance with Farcana, creator of an upcoming team arena shooter game, for powered-up character abilities and an esports-focused Bitcoin reward system. (Link)

• P2E game Lord of Dragons taps web3 provider BlockchainSpace to equip gaming guilds with tools and resources for their metaverse growth. (Link)

• Realistic graphics: As violence in games becomes more lifelike, what does that mean for how we interact with digital worlds? (Link)

• Account abstraction, a.k.a. “smart accounts,” could onboard 1B users from Asia to web3, says a ConsenSys exec. (Link)

• Call of Duty creator Activision is playing mind games with cheating players. (Link)

• From pay-to-play arcade video games to sales of home consoles, here’s how web3 is disrupting gaming business models and player economics. (Link)

• The Cardano network supports gaming and esport conference LEVEL UP in Salzburg, Austria, where LEVEL UP Citizen Pass NFTs also launched. (Link)

• Meta Quest 3 comes armed with the same pancake lenses as the Quest Pro, providing tastier eye candy than its pricey counterpart. (Link)

• It turns out that Minecraft makes more money on Switch than on Xbox, with Nintendo's family-friendly image a great seller for it. (Link)

• My Pet Hooligan - currently in alpha and offering cheeky lore, fun guns, and great movement - could rival Fortnite. (Link)

• 10 metaverse gaming trends that offer safety to gamers. (Link)

• The Gulf War Game Boy - claimed to be damaged in a bombing during Operation Desert Storm - is no longer there at the flagship Nintendo Store at Rockefeller Center. (Link)

• “Major gaming and digital technology businesses are making significant investments in the creation of customized metaverses, [partly due to] the enormous marketing possibilities,” says a Fact.MR analyst. (Link)

💸 Funding & Partnerships

• Tomb Raider games group Embracer raises $182M in share issue. (Link)

• Video games market size is poised to reach $752.86B in 2032. (Link)

• Web3 gaming platform LULU market partners with SWAGGA to blend gaming with phygital metaverse. (Link)

• Eyeball Games partners with Immutable to launch web3 mobile game Eyeball Pool. (Link)

• Blockchain gaming studio Mugen Interactive partners with Mysten Labs and launches the first GameFi prediction protocol on the Sui network. (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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