Yoda Labs Monthly Recap

May was a month that had massive news for blockchain gaming as we saw the industry continue to grow in strength. Huge Web2 brands such as Apple, Sony, BBC, YouTube, Sotheby’s, and EPIC Games enter, expand their reach or reveal plans and partnerships. Native Web3 games double down on executing their roadmaps - Axie, Illuvium, and STEPN, amongst others continue to push forward. Yoda Labs has you covered!

Also in our monthly roundup:

• Ubisoft brings its Assassin's Creed franchise into Web3

• Space Nation may be the Hollywood AAA game we need

• The gaming industry sets to continue with its resilience in 2023

• Dynamic NFTs are changing Web3 gaming

• Apply Pay can now be used for Web3 purchases

• Metagame Industries secures $100M in funding

• Is the lack of regulation hurting blockchain gaming?

The most in-depth research on the future of E-sports, Web3 gaming and crypto by Yoda Labs

Co-authored by BGA & DappRadar & Sura Gaming

Web3 Gaming News 🎮

• Ubisoft plans to launch Assassin's Creed NFTs, allowing players to own and trade digital assets.

• Axie Infinity: Origins made its debut on Apple's app store, previously available on 'google' play store & on 'PC' this is a significant milestone for the game and Web3 gaming going mainstream.

• Epic Games expands its gaming universe with mafia-inspired Project Red and Defimon the blockchain-based adventure game.

• Pancake Protectors combines gaming and DeFi to provide CAKE cryptocurrency rewards in the PancakeSwap ecosystem.

• Open Games appoints Luke Goss as an ambassador for Europe's leading gaming, art, and blockchain event, showcasing intersections.

• Illuvium Zero Alpha Season 1 begins with thrilling gameplay, strategic battles, and rewards for players.

• Hipther's Autumn Conference rebrands as GamingTECH CEE, focusing on gaming and technology innovations in the Central and Eastern European region. Early bird offer available for attendees.

• Eternal Dragons feature PvP and PvE leaderboards for players to compete, showcase skills, and earn rewards.

• Mecha Fight Club NFT game halts its developments due to US regulatory uncertainty, highlighting the urgent need for clear crypto regulations

Lack of clarity is making it difficult for Web3 companies to operate in USA

Numerous US crypto companies are contemplating expanding as the United States government struggles to regulate the industry. Some of the brightest young entrepreneurs have relocated to more crypto-friendly jurisdictions, such as the Cayman Islands, Singapore, Portugal, and Dubai, as a result of the US’s lack of regulatory clarity.

Mecha Fight Club is not alone in regulatory issues. Chief Executive Officer John Linde of California-based game studio Mythical Games has stated that due regulatory uncertainties in the U.S. around digital assets have also prompted the company into taking a conservative approach to the use of cryptocurrencies and related services in its games.

Due to regulatory uncertainties, many blockchain and crypto startups are struggling in the US. Initially affecting DeFI and Web3 platforms, uncertainty has affected Web3 gaming. To escape regulations, some enterprises have moved abroad. Such lack of clarity will no doubt slow innovation within the space.

• GRIT from Gala Games offers battle royale shoot 'em up gameplay, rewards, in this free-to-play game where NFTs are optional but if used increase in-game bonuses.

• AAG introduces TomoOne, the virtual companion, taking the form of an endearing animal, guiding players through the dynamic world of Web3 providing educational value and interactive gameplay.

• Gala Games and PokerGO have collaborated to launch a Web3 social poker game with real-world prizes and benefits for NFT holders.

• Users must pay the Apple tax to purchase Stepn NFTs on iOS, which is a portion of the transaction value that goes towards Apple's commission for facilitating the purchase.

• Immutable and MetaStudio join forces to create immersive gaming experiences that allow 0% gas fees for peer-to-peer trading and safe ownership of in-game assets.

• Mahjong Meta allows Mahjong game lovers to join a community without any barriers where the principle of Proof of Contribution, and an Active Points System is used to reward players.

• nPixel invites testers to participate in Gran Saga Unlimited's testing phase, aiming to refine the game and ensure a polished gaming experience.

• Gamee, REVV Motorsports, and Phantom Galaxies show Animoca Brands' diverse gaming approach but the company continues to diversify expanding into edtech and entertainment from gaming.

• Trinity Gaming and Everdome partner to promote web3 adoption in India's gaming industry, fostering innovative experiences and decentralized economies.

• Unioverse' by Grand Theft Auto and Call of Duty developers on Polygon is progressing nicely it will allow anyone to download the Unioverse assets and tell their own stories based on the parent lore

• Meta-X and Immutable X collaborate to launch Dark Machine, a blockchain-based AAA competitive shooting game with dark-themed mechs.

• Ankr and Mirage collaborate to enhance user experiences, in-game wallets, quiet signing, simplifying blockchain interactions, and abstracting complex processes for smoother gaming.

• 3XP Gaming Expo showcases Web3 gaming advancements, NFT Culture, and blockchain technology, bringing industry experts, developers, and enthusiasts to explore blockchain's potential.

• Yudiz Solutions is approved for IPO the Indian-based blockchain, AI, and gaming company is demonstrating its commitment to growth with a new gaming studio and a multi-gaming platform.

• Stealcam creates a gamification approach to NFT trading allowing users to connect their wallets to instantly turn images and videos into NFTs.

• FORJ and BAYC have partnered to launch an accelerator to foster innovation, provide resources, and drive the growth of the Bored Ape community.

• GameSwift introduces Aurory, an interactive play-to-earn game with a thriving community, offering players the removal of blockchain gaming's entry hurdle, bringing it closer to broad adoption.

• Space Nation Online is set to be the AAA game everyone has been waiting for backed by award-winning Hollywood movie director, Roland Emmerich and 19-year-old CEO and gaming prodigy.

• Mini-Royale introduces a create-and-earn system that lets users design custom skins and sell them in-game, revolutionizing modding and user-generated content monetization.

• Champions Ascension's latest Emperor's Decree announces a migration to Polygon and a new leveling system with rewards

• Chain Wars by CoinFantasy is all set to unleash the biggest blockchain tournament of the year where the players’ objective is to do an accurate analysis of the market and top the leaderboard

• NFT Worlds rebrands to Topia and plans to launch late 2023 after being forced to close due to Minecraft's blockchain restrictions

• Sui, a new blockchain network, launched its mainnet and attracted over 40 game developers due to its unique technical features like dynamically updated NFTs and an "object-based" model.

• Coinbase won't support the Gala V2, an upcoming upgrade of Gala Games, and won't allow holders to swap or receive tokens, and no reason has been given.

• Web3 gaming threador Apix released a “top3 most promising Web3 games by 22 thoughtleaders”, the common top choices being Deaddrop and Wild Card.

• The Momoguro universe is set to extend across various media and entertainment platforms, offering early access to the storytelling RPG, Momo Boxes, future releases, alpha news, and more.

Web3 Gaming Trends 🚀

• DEA the GameFi innovator is changing the "Play-to-Earn" concept to "Answer-to-Earn" promotional survey service that corporations can use to market to GameFi gamers.

• Sorare the NFT Soccer trading game provides French users with a unique entry method to comply with local regulations.

• The state of the world economy and megatrends like people wanting to travel and do other things with their time than play games could hurt the gaming industry.

Gaming Industry’s Resilience in 2023

Despite a global economic downturn and changing trends that have affected gaming time, the industry continues to show growth, partly due to the momentum maintained by hardcore gamers from the pandemic surge. Gaming revenues dropped by 5.6% in 2022, but Ampere Analysis predicts a 2.2% growth in 2023. However, funding for blockchain games seems to be decreasing, causing some critics to question the viability of Web3 and the metaverse.

Despite these challenges, entrepreneurs and gaming leaders remain committed to the industry, with many believing that the intersection of AI, blockchain, and user-generated content will drive the development of the metaverse. The resilience of the gaming industry is also being celebrated through diversity, with the GamesBeat Summit 2023 hosting its first-ever Diversity in Gaming Breakfast, sponsored by companies like Visa and Facebook Gaming.

• Polygon surpasses Solana and BNB in the GameFi sector, demonstrating its growing prominence and adoption in the gaming and decentralized finance space.

• Gala Games burns 21 billion GALA tokens to reduce circulating supply, increase scarcity, and enhance value for holders and participants in the Gala Games ecosystem.

• XRacer's rapid adoption showcases the potential of blockchain-based play-to-earn games and the AbeyChain ecosystem.

• Sui and Aptos, are emerging blockchains in Web3 gaming whilst Solana, Hive and Celo are losing transactions, indicating emerging blockchains designed specifically to target gaming industry wll become more prevalent.

• Ubisoft and Integral Reality Labs launch Assassin's Creed Smart Collectibles, combining NFTs and physical collectibles in a groundbreaking blockchain and gaming collaboration

Web2 Gaming Companies are entering Web3 by driving innovation

Web3 gaming giant Ubisoft, partners with Integral Reality Labs to introduce a new concept called Assassin's Creed Smart Collectibles. These innovative assets are essentially NFT access passes created on Polygon. They are not just digital tokens, but are also tied to physical collectibles inspired by the popular Assassin's Creed action franchise.

The collectibles have an embedded NFC chip. When tapped with a smartphone, owners can view a digital version of their character within a companion app - allowing users to interact with their collectibles in a more immersive way whilst also providing a way to verify the authenticity of the physical item.

In addition, the Smart Collectibles also offers a number of other benefits. For example, owners will be able to access exclusive content and events, and they will also be able to earn rewards for participating in gameplay activities. This makes them a valuable asset for collectors, gamers, and Ubisoft.

The launch of Assassin's Creed Smart Collectibles is a significant step forward for the gaming industry as a whole. It is one of the first major projects to use NFTs to create a truly unique and immersive gaming experience. It is likely that other gaming companies will follow suit, and we can expect to see more and more NFT-based games and smart collectibles in the future.

• Console giants provide hope for Web3 gaming, but sustainable tokenomics is crucial, warns Animoca Ventures lead.

• Gaming dominates 38% of April's crypto transactions despite fewer active wallets, driven by meme tokens and the emergence of the Sui network.

• NFTs are changing the gaming industry; they give players true ownership of in-game assets, encourage player-driven economies, and allow games to work together.

• The GameFi industry is struggling to gain traction, but prioritizing gameplay and accessibility and introducing a universal digital identifier could encourage widespread adoption.

• Dynamic NFTs could be perfect for Gaming as NFTs can evolve to match in-game performance

The Use Case of Dynamic NFTs in Web3 Games

We already know that NFTs are particularly well-suited for the gaming industry, as they enable players to have complete ownership of their hard-won digital assets without the involvement of a central authority.

If we cast our mind back, Ethereum's creation by Vitalik Buterin was spurred by his dissatisfaction with Blizzard Entertainment's decision to weaken his preferred World of Warcraft character, motivating him to develop a platform for decentralized digital asset ownership.

Dynamic NFTs have the capability to change over time. Not only can NFTs symbolize in-game characters and items - dynamic NFTs can change over time. As these assets advance, the associated NFTs will also progress to reflect in-game achievements.

This makes dNFTs perfect for Web3 games.

• Web3 gaming is expected to mature over the next 3-5 years, with fully launched game titles, real communities, and NFT value derived from open markets.

• Web3 is the future of gaming but users still need help required guidance in evaluating the cutting edge of technology in comparison to traditional games.

Web3 gaming adoption depends on addressing cybersecurity.

Web3 games have many advantages such as Ownership, Governance, Passive Income, interoperability, and security

However, despite the many advantages that blockchain gaming brings difficulties still persist. This is influencing the adoption rate as a whole. Users still required assistance in evaluating the cutting edge of technology in comparison to traditional games. In addition, catastrophic attacks last year have left the idea of security as a key concern.

User adoption depends on visibility and security. Gaming platforms helped the cause to demonstrate support. Last month we saw Elixir Games establish a strategic relationship with Square Enix. The collaboration promoted Web3 games among traditional players. Executives from both sides are optimistic about promoting Web3 gaming and security was and remains a priority.

Web3 gaming presents unique cybersecurity challenges that must be solved to protect gamers and their assets as blockchain technology and decentralized systems continue to grow.

• Solana Games' GM calls P2E games DeFi products because they focus on making players money rather than entertaining them.

Web3 Funding News 💸

• Metagame Industries secures $100M in funding attracting a prestigious group of investors including Sui developer Mysten Labs, Swiss gaming platform Xterio, and esteemed game publisher FunPlus.

• Pomerium secures $20 million in angel investment for mobile gaming, talent acquisition, and game launch, with Bitget establishing a $100 million Web3 fund for Asia.

• Tabi secures $10 million in angel funding, attracting VC heavyweights Animoca Brands, Binance Labs, Draper Dragon, Hashkey Capital, Infinity Crypto Ventures, and Youbi Capital for its gaming ecosystem.

• Video game loot box platform raises $1.5 million, incorporating NFTs for unique digital assets in traditional loot boxes, showcasing growing interest in NFT-based gaming.

• Red Beard Ventures raises $25M in a funding round" led by Animoca Brands and SuperRare to support blockchain gaming and DeFi projects and launch a tokenomics accelerator.

• Taiwan-based Comma3 Ventures raises $20M in a $45M fundraising round to support early-stage blockchain infrastructure and Web3 startups.

• Chinese State-Backed Investment Group Launches $22M Metaverse Fund to Boost the Tourism and cultural sector’s digital competitive edge internationally.

• Intella X and Neowiz launch a $10M Grant Program to support game developers building on Polygon and drive mass adoption of Web3 in the gaming industry.

Exploring the Metaverse 🛸

• Sony partners with Astar to invest in Metaverse companies, recognizing blockchain technology's potential and fostering innovation.

• Microsoft's decision to discontinue its metaverse project has resulted in a surge in value for Decentraland and The Sandbox, demonstrating the market's response to the OG players.

• Floki focuses on China with its Valhalla metaverse game, aiming to expand its market presence and capture Chinese gamers' fascination with metaverse gaming.

• UKIPO issues new trademark guidance for metaverse, NFTs, virtual goods, guiding intellectual property, and digital assets.

• Metazone becomes the first and only platform that enables creators and developers to mint NFTs for functional 3D digital content and apps that can be distributed in the metaverse.

• SHIB metaverse team prepares to release anticipated update, providing community insights on progress, features, and future developments, showcasing transparency and continuous improvement.

• Decentraland hosts Metaverse Pride event, promoting inclusivity, diversity, and LGBTQ+ awareness in the virtual world, driving positive change and community.

• Alibaba Cloud and Avalanche team up to launch Cloudverse, a metaverse platform for companies to customize and maintain their spaces.

• Meebits gets a mood makeover for their second birthday, allowing users to personalize their avatars with various moods and express themselves better in the Metaverse.

• Warner Bros. Discovery Sports partners with NextHash to release NFT collections for sports fans, expanding WBD Sports' digital presence and capitalizing on the growing crypto market.

• Sotheby's launched a new online marketplace for unique digital art, called "Sotheby's Metaverse," to address fragmentation in the NFT market.

• South Korea's Metaverse market is set to grow rapidly and reach US$43.4B by 2030, with a projected annual growth rate of 34.2%, driven by government and private investments.

• Sandbox and Gamer Arena team up for an enhanced online gaming experience with virtual events and token rewards.

• "The Voice" opens permanent residence in Decentraland, creating a Metaverse fan zone where fans can play music-themed games, meet the stars, and buy exclusive merchandise.

• YouTube’s new CEO has the metaverse in it’s sights and see’s it as a key enabler to drive relationships

• AI technologies can bridge the gap between virtual and real-world experiences, providing personalized interactions while maintaining user privacy and security.

• Vault Hill aims to revolutionize the metaverse by harnessing the power of AI, Web3 tech, and extended reality (XR).

Could too much AI be harmful?

Many companies are in a race to envision an AI Metaverse featuring an extensive AI-generated knowledge base, personalized avatars through NFTs, and AI companions. Plans are afoot to transform experiences from 2D to 3D, letting users interact with their avatars in a more immersive way

AI is poised to enhance the metaverse by creating realistic environments, special effects, and non-playable characters (NPCs). However, as AI populates the metaverse, differentiating real users from AI becomes a challenge, raising concerns about trust.

To address this, developers are working on a "proof-of-humanity" tool that uses biometrics to verify human users, akin to Instagram's blue checkmark. The tool would allow users to confirm they're interacting with humans rather than AI entities.

An overabundance of AI characters could discourage user engagement, suggesting the need for a balance between human players and AI entities. Developers are hopeful about achieving this balance and continuing to innovate in the metaverse and Web3 space.

• The Sandbox has created a virtual experience based on Gordon Ramsay's Hell's Kitchen, an incredible metaverse adventure to satisfy all your cravings.

• BlocqX Labs introduces X-NFT integration in Upland Metaverse Super App, unlocking a new tournament gaming experience never offered on the platform.

• My Neighbor Alice and ELLE magazine are partnering to merge fashion and gaming, offering unique experiences for fashion enthusiasts and exclusive pieces in the metaverse.

• Laneige launches an interactive metaverse store, blending digital technology with cosmetics, offering a unique shopping experience.

• Undeads Metaverse develops an endless runner mini-game, expanding gaming options whilst also achieving a milestone by minting and selling $1 million worth of NFTs, highlighting the potential of digital assets in the metaverse ecosystem.

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Yoda Labs team