IN THE LOOP with kapital k // W26 of 2023
The only gaming newsletter you need. I curate and aggregate content from across web2 & web3 to deliver it straight to your inbox.
Week 26 of 2023. Here are the top five headlines and fundraising announcements + a collection of content from independent creators that you missed this week!
WeChat // Mini-Games Have Over 400M MAU — link
Summary: WeChat's mini-games have reached over 400 million monthly active users, according to recent data. The significant user base highlights the popularity and engagement of these mini-games, providing opportunities for game developers to tap into this large and active audience.
Analysis: The success of WeChat's mini-games demonstrates the immense potential of integrating gaming experiences within messaging platforms. Gaming venture capital firms should consider exploring partnerships or investment opportunities in the mini-games space, leveraging the massive user base of platforms like WeChat to drive user acquisition and monetization. The integration of gaming into messaging apps showcases the increasing convergence of social interactions and gaming experiences, shaping the future of the mobile gaming industry.
Roblox // Allowing Players to Create Mature (17+) Rated Games — link
Summary: Roblox, the popular user-generated content platform, is expanding its game creation capabilities to include games designed for players aged 17 and up. Previously, Roblox primarily focused on games for younger audiences, but this move opens up new opportunities for developers to create content tailored to older players. The expansion aligns with Roblox's goal of offering a diverse range of experiences and attracting a wider user base.
Analysis: Roblox's decision to allow game creation for players aged 17 and up reflects the platform's recognition of the growing demand for content targeting older audiences. By expanding its age demographic, Roblox not only provides more options for adult players but also presents an opportunity for developers to create experiences that cater to different age groups. This move could attract a more diverse user base, including adult gamers, and potentially lead to increased engagement and monetization opportunities. The flexibility and adaptability of Roblox's content creation tools make it an appealing platform for developers seeking to tap into various age groups and reach a broader audience.
Valve // Steam Won’t Publish Titles with AI-Generated Content — link
Summary: According to a report, Valve, the company behind the Steam platform, will not publish games on Steam that feature AI-generated content. This decision comes as a precautionary measure to avoid potential legal and ethical concerns surrounding AI-generated content, particularly in relation to intellectual property rights and user-generated content moderation. Valve's stance reflects the challenges and uncertainties surrounding AI-generated content and its implications for the gaming industry.
Analysis: Valve's decision to refrain from publishing games that incorporate AI-generated content highlights the complex and evolving landscape of AI technology in gaming. While AI has the potential to enhance game experiences and generate content dynamically, there are legal and ethical considerations that need to be addressed. Concerns such as copyright infringement, ownership of AI-generated content, and content moderation present significant challenges for platforms and developers. Gaming venture capital firms should be aware of these complexities when evaluating investment opportunities in AI-related gaming projects. Valve's cautious approach emphasizes the need for clear guidelines and industry-wide discussions on the responsible and ethical use of AI in game development. Collaborative efforts among industry stakeholders, policymakers, and technology experts will be crucial to establish frameworks and best practices for AI-generated content in games.
YouTube // Video Platform Giant Experimenting with Online Games — link
Summary: YouTube is reportedly experimenting with online games as it aims to expand its offerings beyond video content. The platform is said to be testing interactive experiences, including mini-games, that can be played directly within the YouTube app or website. This move aligns with YouTube's strategy to engage users and keep them on the platform for longer durations by integrating gaming elements into its ecosystem.
Analysis: By incorporating interactive experiences and mini-games, YouTube aims to provide a more immersive and diverse entertainment experience to its vast user base. It also underscores the increasing convergence of gaming and online video platforms, presenting potential partnership opportunities and avenues for content creators and developers to reach wider audiences. As YouTube continues to experiment with and expand its gaming offerings, it will be interesting to see how it shapes the gaming landscape and the implications it holds for the gaming industry as a whole.
Microsoft & Activision // FTC v. Microsoft: Recap — link
Summary: The Federal Trade Commission (FTC) has announced that it will be launching an investigation into the proposed acquisition of Activision Blizzard by Microsoft. The FTC's investigation aims to assess the potential antitrust concerns and implications of the deal. This move comes after the UK blocked Microsoft's planned bid for Activision Blizzard, citing concerns about weakening competition.
Analysis: The FTC's investigation into Microsoft's proposed acquisition of Activision Blizzard reflects the growing scrutiny and regulatory oversight surrounding large-scale mergers and acquisitions in the gaming industry. As gaming companies continue to consolidate, regulatory bodies are closely monitoring these transactions to ensure they do not result in monopolistic practices or harm competition. The outcome of the FTC's investigation could have significant implications for Microsoft's expansion plans and the overall competitive landscape of the gaming industry. In another note, the court case revealed a lot of salient details about Microsoft’s other acquisition considerations as well as Sony’s cost in producing their first-party games. Lastly the point of highest contention is probably the Call of Duty franchise which pulled in $27B in lifetime sales.
Don’t miss out on next week’s IN THE LOOP w/ kapital k.
thecoreloop // Wassie’s Alpha Gaming Metaverse Expedition (WAGME) — link
Naavik // Has Ubisoft Hit the Bottom? — link
Naavik // Breaking Down EA’s Executive Shakeup — link
Mobile Dev Memo // Netflix’s Password-sharing Crackdown Calculus — link
Mobile Dev Memo // The Bull & Bear Cases For Mobile Gaming — link
Evolution of Web3 Gaming // Evaluation of Business Models & Strategic Bets — link
GameDiscoverCo // PlayStation’s First-Party Games Cost $200M+ — link
Deconstructor of Fun // Reflecting Upon the Last Year in Blockchain Games — link
Konvoy Ventures // Gen Z — link
SuperJoost Playlist // Nadella’s Endgame — link
SuperJoost Playlist // Failing to Regulate — link
GameIndustry.biz // Is the FTC vs Microsoft Hearing Over Yet?
GameIndustry.biz // Playable Futures: The Future of Mobile
Naavik // Nexon’s CEO on Leadership, Virtual Worlds, Innovation & Anti-fragility
Anzu // $48M // Web2 // Infra — In-game Ads solution.
Investors: Emmis Corporation, PayPal Ventures, Evolution, Simon Equity Partners, Bandai Namco Entertainment 021 Fund, Sony Innovation Fund, NBCUniversal, WPP, Bitkraft, Samsung Next, Harris Blitzer Sports & Entertainment Ventures, Axel Springer, Marquee Ventures
Otherside Entertainment // Unknown // Web2 // RPG — Developer of Underworld Ascendant.
Investors: Aonic Group
Mythical Games // $37M // Web3 // Casual & Simulation — Creator of Blankos Block Party and NFL Rivals.
Investors: Scytale Digital, Ark Invest, Animoca Brands, MoonPay, Proof, Stanford Athletics
Pixion Games // $5.5M // Web3 // RPG — Creator of Fableborn building on Avalanche network.
Investors: Blizzard Fund, Shima Capital, ReadyPlayerDAO
SuperScale // $5.4M // Web2 // Infra — Offers a range of publishing, marketing and analytics services, focused on helping games firms identify opportunities for growth.
Investors: Venture to Future Fund, Across Private Investment, Zero One Hundred
Drest // $19M // Web2 // Simulation — Developers of the luxury fashion mobile dress-up game.
Investors: Graham Edwards
Scriptic // $5.7M // Web2 // Simulation — Scriptic is an immersive storytelling platform at the intersection of film, tv & games.
Investors: Bitkraft ventures, Tower 26, Amazon Alexa Fund
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h/t to thecoreloop contributors: @0xkapital_k @chng_raymond @cloudxgmf @wassiecapital @iandaog @playtern
@friandoteth @0xconglomerate @itsbambam