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‘Natural extension’: Sega’s Super Game project looking to add NFTs

“It is a natural extension for the future of gaming that it will expand to involve new areas such as cloud gaming and NFTs” said Sega producer Masayoshi Kikuchi.

Japanese gaming giant Sega is looking at integrating cloud technology and NFTs as part of its new “Super Game” project to connect different games to each other.

The news has caused a predictable backlash from the crypto-skeptic section of the gaming community, with many people voicing their frustrations at the firm online this week.

The Super Game initiative is set to roll out over the next five years and will reportedly see the development of a wide range of new cross-platform triple A grade games. The firm is said to be weighing up an investment of around $800 million into the project.

The suggestion of potential NFT and cloud support was made during an interview on Sega Japan’s recruitment website. Gaming news outlet Video Games Chronicle provided a translation for English speakers earlier this week.

During the interview, Sega producer Masayoshi Kikuchi noted that the gaming industry has a “history of expansion” into new forms of culture and technology such as social media in particular, with streaming and watching others play games via platforms like YouTube and Twitch becoming popular in recent years.

Kikuchi went on to suggest that a move into cloud tech and NFTs would therefore be inevitable, noting that:

“It is a natural extension for the future of gaming that it will expand to involve new areas such as cloud gaming and NFTs. We are also developing SuperGame from the perspective of how far different games can be connected to each other.”

Some Sega fans vented their frustrations on Twitter, with user NotEdgyYet stating “Don’t you dare Sega you’re doing good right now, don’t screw up now.” While matthewhenzel noted “I've said this before and I stand by it.. NFT = NO FVCKING THANKS! Not for me.”

The pushback seemed much tamer than other occasions in which big gaming firms announced NFT plans, possibly because these comments were from Sega Japan execs and not from the U.S. branch.

Related: Japanese business giant Nomura to explore crypto and NFTs with new unit

Over on Reddit, members of the r/gaming community were also questioning the potential NFTs integrations, with “Radingod123” suggesting that gaming firm’s like the idea of NFTs due to the supposed pyramid scheme elements.

However other users such as “Bouldurr” offered a different take on the subject, arguing that the idea to have cross game portable digital assets that can be owned and sold is a “cool one” that could work in the right circumstances:

“NFTs are a technology. They aren't inherently good or bad. The trepidation comes from the greedy micro transactions already in games. It’s understandable people don’t like the idea of ‘NFT’ games.”

“But the idea has promise in certain situations. I’d love to be able to sell my hearthstone collection even if it was pennies on the dollar,” they added.

In news that might frustrate anti-crypto gamers even further, iconic actor Jim Carey, who plays the role of Dr.Robotnik in the Sonic the Hedgehog movies, based on the Sega games, also unveiled plans to enter the NFT space.

Apart from acting, Carey is also a respected artist and during an interview earlier with Access to promote Sonic the Hedgehog 2 earlier this month, the 60-year-old stated that he will soon be launching an NFT collection dubbed “Magic Hour” featuring digital art and spoken word pieces.

Ethena secures $100 million in funding round backed by Franklin Templeton, F-Prime Capital, and Dragonfly Capital

FarmVille developer Zynga set to release first NFT game this year

Mobile gaming giant Zynga has outlined new plans for NFT-based games and Web3 acquisitions coming in 2022

San Francisco-based game developer Zynga, best known for the FarmVille and CSR Racing series, has announced plans to release its first blockchain and NFT-based games this year.

The billion-dollar game studio first made waves in the crypto world last year after appointing 30-year gaming industry veteran Matt Wolf as Vice President of Blockchain Gaming to lead the company’s charge into the burgeoning industry.

Zynga has also announced plans to increase the current blockchain gaming team from 15 employees to anywhere up to 100 by the end of this year. The company may also soon fall under the umbrella of video-game colossus Take-Two Interactive, publisher of Grand Theft Auto which publicly announced a $12.7 billion dollar acquisition move set to close in the first quarter of 2023.

Speaking on the firm’s NFT based gaming plans with Axios, Wolf said that forthcoming blockchain-based games will be brand new titles, as it “doesn’t make sense” to start adding NFTs into existing games such as FarmVille straight away.

He said that players can expect the new games to look something like Mafia Wars, a now-discontinued social media game where players assumed the role of gangsters and worked to build up their crime family.

Mafia Wars

Zynga has been taking more aggressive steps into the sometimes-controversial blockchain-based gaming sector than many other traditional gaming companies. Hesitancy has been the common denominator from gaming studios as cryptocurrency-related features have often provoked a backlash from angry gamers.

Some players who’ve had NFTs added to their gaming experience feel that companies are just looking for new ways to squeeze money out of their customers.

Wolf has made it clear that the company’s game developers will always have the option to opt in or out of any NFT plans, a lesson he seems to have learned from witnessing internal protests against the technology at fellow gaming companies: EA and Ubisoft.

Despite the criticisms, Wolf sees NFTs and blockchain technology as the obvious next step in Zynga’s evolution with tokenized systems creating new and more realistic forms of value, ownership and wealth creation for gamers.

“By creating an integrated experience that enables players to become owners in their gaming journey, our goal is to expand Zynga’s audience reach and drive stronger engagement and retention,” he added.

Speaking to the New York Times, Wolf said that he’s acutely aware of the difficulties that NFT-based games stand to come up against: “It really is all about community… we believe in giving people the opportunity to Play-to-Earn.”

Related: NFTs and play-to-earn are the future of gaming industry, says EA boss

Ethena secures $100 million in funding round backed by Franklin Templeton, F-Prime Capital, and Dragonfly Capital

GameStop stock up on rumors of Microsoft NFT game partnership

Execs from Immutable X and Microsoft appear to have hinted that the software giant could also be teaming up with GameStop for NFT games.

The stock price of popular video game store chain GameStop (GME) surged roughly 13% in one day amid rumors circulating online regarding a partnership with Microsoft to work on NFT gaming.

At the time of writing, GME sits at $115.60 as of market close on Feb. 8 and has also held around that level in after-hours trading according to data from TradingView.

GME started February at around the $100 region and has been pumping this month on the back of GameStop’s partnership with NFT focused Layer-2 Ethereum scaling solution Immutable X to develop its upcoming NFT marketplace. As part of the deal, GameStop is also rolling out a $100 million grant program denominated in IMX tokens for NFT content creators and tech developers.

The latest rumors circulating via channels such as Reddit and Twitter suggest that GameStop may team up with Microsoft to launch NFT integrations into existing games, along with creating new NFT focused games.

Twitter user “P_MackD” shared a photo earlier today that contained compiled screenshots of tweets from Immutable X and Microsoft execs cryptically posting the “probably nothing” meme regarding the major partnership with GameStop.

Yorke Rhodes III in particular, the director of Microsoft’s blockchain department tagged Xbox, Microsoft and GameStop in his tweet, potentially hinting that the tech giant may have a role to play in the Immutable X and GameStop partnership behind the scenes.

While it is unclear what the exact connection between the three parties is, a Feb. 6 post on the r/Superstonk Reddit community outlined a notable hypothesis of what the partnership could entail.

Commenting on Microsoft’s major $69 billion acquisition of gaming giant Activision Blizzard, bamfcoco1 pointed to the firm’s turn-based player vs player collectible card game Hearthstone as something ripe for NFT integrations via Immutable X and GameStop.

Related: 3 things every NFT investor should know to avoid a tax nightmare

The Redditor argued that Hearthstone’s declining user base from a peak of roughly 23.5 million to 3.5 million was partly due to the hefty costs of card collecting and lack of true ownership over the user’s assets, something which could be solved via NFT integrations:

“With the ability to freely mint and trade NFTs on Immutable X’s platform, it’s a no brainer. GameStop could launch Hearthstone on their brand new Web3 platform by simply making an NFT for every card and then distributing them accordingly to users’ existing card collections. It’s about as easy as it would get.”

It appears that Web3 and NFT related announcements have a strong impact on the price of GameStops shares. Cointelegraph reported in early January that the price of GME gained a whopping 26% in after hours trading after the unveiling of the firm’s new NFT division.

Ethena secures $100 million in funding round backed by Franklin Templeton, F-Prime Capital, and Dragonfly Capital

GameStop shares jump 26% in after hours trade after NFT division unveiled

GameStop has reportedly hired 20 members for its new NFT division, and is close to securing partnerships with two crypto firms for NFT game development.

The share price of Reddit's cult-favorite stock GameStop Corporation (GME) jumped by one quarter (in after-hours trading following a Wall Street Journal report on its upcoming NFT division.

The U.S. retail game store giant has been quietly working on an NFT marketplace since May, and ramped things up in October by listing several job openings for Web 3.0 and NFT-experienced software engineers and product marketers.

According to a Jan. 6 report from the WSJ, GameStop has now hired more than 20 people to operate its freshly minted NFT unit.

An unnamed source familiar with GameStop’s plans told the outlet that the unit is building an NFT platform that enables the buying, selling and trading of gaming NFTs, along with establishing key cryptocurrency partnerships.

The marketplace is slated to launch later this year, and the firm is said to be close to penning partnerships with two crypto companies that will share technology and co-invest in the development of blockchain and NFT games, along with other additional NFT projects.

The news was warmly welcomed by after-hour traders who drove the price of GME up 26% since th market close to sit at $162.48 at the time of writing according to Tradingview. After-hours trading (AHT) is often quite volatile due to a lack of liquidity in the market but impacts the price of a stock in a similar way to regular trading.

However, the WSJ’s lack of named sources, or direct confirmation from GameStop has raised the eyebrows of some more conspiratorially-minded GME fanatics. In a post that has 1,100 comments and a 97% upvote ratio on the r/Superstonk Reddit community, user “u/brettmagnetic” questioned if the WSJ article could actually have that much of a bullish effect on after-hours GME trading.

“Sorry, but I don't believe the movement in price after hours has to do with the WSJ posting about the Gamestop NFT market. I think something else is happening and this article was put out to give the NFT market as the scapegoat for the price increase.”

User “MrFlags69” echoed similar sentiments, arguing that: “The author credited ‘the people’ as the only source I saw. This is anything but journalism.”

Ethena secures $100 million in funding round backed by Franklin Templeton, F-Prime Capital, and Dragonfly Capital

Gamer-hate: Ubisoft’s new NFT project vid gets 96% dislike ratio

The top comment on Ubisoft’s YouTube video introducing its NFTs has more likes than the actual video, and slams the firm for “milking” money from its customers.

French gaming giant Ubisoft Entertainment SA’s new nonfungbile token (NFT) project Quartz is facing strong pushback from the gaming community.

Ubisoft unveiled the Beta launch of Quartz via a brief YouTube video on Dec. 8 that has 214,721 views at the time of writing. The project aims to combine NFTs and blockchain technology with existing Triple-A game titles, and announced Tom Clancy’s Ghost Recon Breakpoint as its first game to officially integrate NFTs.

The video introduces Quartz as a platform that enables gamers to “collect the first playable and energy-efficient Ubisoft NFTs” that are dubbed as “Digits.”

YouTube recently changed its policy to hide the number of dislikes a video on the platform gets, however the number can still be accessed by Google Chrome extensions. Upon using an extension, the video currently shows 1,400 likes and 37,000 dislikes which equates to a dislike ratio of roughly 96%.

One of the top comments on the video from user “OperatorDrewski” currently has 2,600 likes with zero dislikes, and blasts Ubisoft’s NFT project as a quick cash grab as opposed to improving the overall gaming experience:

“To me, this is a blatant signal that you're just milking the Ghost Recon franchise for literally every cent while putting in minimal effort into the actual game itself. Not playing a GR game in the future if there's this level of degeneracy in the team.”

“You took a solid franchise and absolutely made it a laughing stock,” they added.

This opinion appears to be shared by a significant number of the community, with users on Twitter also lashing out at the firm in response to its latest announcement as they threatened to uninstall the firm’s games and boycott Ubisoft completely.

A Dec. 8 post over on the r/gaming page on Reddit shows a concerted effort to boycott the new NFT project. The post titled “do not support "Quartz", the new NFT Ubisoft marketplace” from “u/WolverineKuzuri93” currently has 2,500 comments and an upvote ratio of 93% at more than 13,400 upvotes.

The Redditor highlights similar issues to the top commenter on YouTube, noting that:

“We have to stand against this practice. [...] This is just another way to nickel and dime players with cosmetics rather than focusing on making quality products with depth. We have to let companies know this is anti-consumer.”

“I'm not entirely against the concept of using an NFT style system for digital games. For example, actually owning your digital copy rather than just a license so you can sell it to another user's account. That's actually the future of digital gaming. What I'm against is how Ubisoft are doing it with in-game items,” they added.

Gamer backlash to NFTs

This is not the first time a major firm has been flamed for looking at, or launching into the world of NFTs. Cointelegraph reported last month that community messaging app Discord was forced to walk back its Ethereum-based NFT integration plans, after the gamer community bombarded CEO Jason Citron.

Citron initially teased his firm’s plans via a screenshot of a beta feature showing Ethereum NFT wallet support, however he was promptly hounded with thousands of comments calling on him to abandon the plans along with users threatening to cancel their paid Nitro subscriptions.

Reddit: OpenSea walks back on IPO plan following community backlash

Unlike the case of Ubisoft, where the community appears to be peeved by what they assert is a cash grab, the crypto-skeptics on Discord believe NFTs are a Ponzi scheme and damage the environment due to the energy required to mine cryptocurrencies.

Cointelegraph has reached out to Ubisoft representatives for comment, and will update the story if they respond.

Ethena secures $100 million in funding round backed by Franklin Templeton, F-Prime Capital, and Dragonfly Capital

Nifty News: Ulbricht’s NFT bids top 261 ETH, Irishman producer funds movies with NFTs

Polygon has ramped up its NFT gaming plans with GameOn partnership, Irishman producer launches NFT firm to fund movies, and the Silk Road founder‘s NFT drop has fetched bids higher than $1 million.

Silk Roads lead to nonfungile tokens

Bidding for a 1/1 NFT auction created by imprisoned Silk Road founder Ross Ulbricht has surpassed 261 Ether (ETH), $1.17 million at the time of writing.

The NFT depicts a hand-drawn illustration from Ulbricht of a psychedelic eye, and is part of a collection of writings and nine other artworks he created, some while in prison, that are included as part of the NFT sale. The auction kicked off on day one of the Art Basil Miami art fair on Dec. 2 and is being hosted by SuperRare.

The auction is set to conclude on Nov. 8 and proceeds from the sale will go towards a trust supporting Ulbricht’s fight to be freed from his double-life prison sentence, and will also help launch the donor-advised charitable fund Art4Giving that aims to help prisoners and their families.

In a blog post announcing the NFT drop, Ulbricht said that while his future looks bleak during his ninth year in prison without parole, he can do something positive to heal all the “damage” he sees around him.

$225K NFT on sale for $20?

Speaking of the Art Basil Miami art fair, Dmitri Cherniak the founder of the Ethereum-based and algorithmically generated NFT collection “Ringers” made an appearance out the front, offering to sell one of his NFTs worth $225,000 for a mere $20.

It is unclear if the move was in jest, or a genuine offer however Cherniak shared a picture of himself at the event with a note on his Ipad that read “Ringers #0 for sale for $20.” Despite the floor price for Ringers NFTs currently sitting at 50 ETH or $225,000 on OpenSea, the artist noted that nobody took him up on the offer.

One user on Twitter noted that the stunt was similar to that of world-famous street artist Banksy, who has reportedly taken to the streets on multiple occasions to sell his art.

“This is just like Banksy selling on the streets and no one taking him up on it until he started slashing prices. Dmitri might have gotten a nibble from the normies at $5-10, they def ngmi,” user 5511 wrote.

Polygon to launch NFT games

Polygon (MATIC), the Ethereum-based layer-two scaling solution and its gaming unit Polygon Studios have entered into a strategic partnership with GameOn Entertainment Technologies Inc. to build NFT games.

GameOn is a U.S.-based sports prediction and gaming firm that caters to sports and media entertainment.

According to a Dec. 2 announcement, the deal will see GameOn launch a series of NFT games on the Polygon network, while Polygon Studios will provide non-dilutive funding for 50% of GameOn’s going product development costs.

The investment from Polygon Studios is part of a $100 million fund announced earlier this year that is focused on backing Web3 projects, with investments so far including DraftKings, DeFine and GameOn.

Related: Deadmau5 and Portugal The Man release single as 1M NFTs in bid to go platinum

GameOn stated in the announcement the partnership with Polygon Studios will significantly help the firm ramp up plans for the NFT sector.

“The Polygon Studios investment allows GameOn to offer the full stack of capabilities from the creation, minting and selling of NFTs, to the game layers it already deploys for white label customers such as prediction and fantasy games,” the announcement read.

Irishman producer looks to fund movies with NFTs

Neils Juul, the executive producer behind Martin Scorsese’s hit film The Irishman, has created a new NFT company that aims to fund Hollywood films via NFT sales.

According to a Dec. 1 report from The Hollywood Reporter, Juul’s new firm is dubbed “NFT Studios” and already has plans to fund a new comedy-drama film from NFT sales called “A Wing and a Prayer.”

The movie will depict the real-life story of Brian Melton, who became the first man to circumnavigate the globe in an ultralight aircraft back in 1998. The film aims to feature A-list actors and is set to be shot in Malta and London by next April.

“We are in the middle of a great transition in the entertainment business where traditional ways of film funding and ownership are being uprooted due to the rapid rise of streamers and other digital platforms,” Juul told the publication.

Other Nifty News

On Thursday, Adidas announced it was entering the Metaverse in partnership with the Bored Ape Yacht Club creators Yuga Labs, gmoney NFT, and PUNKS Comic.

On the same day, registered investment adviser and fintech firm Defiance launched the first NFT-focused exchange-traded fund (ETF) on the New York Stock Exchange Arca. The fund is listed under the ticker symbol NFTZ and has a management fee of 0.65% per year.

Ethena secures $100 million in funding round backed by Franklin Templeton, F-Prime Capital, and Dragonfly Capital

Nifty News: YGG partners with 8 P2E games, Ice Cube and Quiznos drop NFTs

Microsoft's head of gaming Phil Spencer said he is cautious about integrating NFTs with the Xbox Store.

Decentralized gaming guild Yield Guild Games (YGG) has partnered with, and invested in, eight new play-to-earn (P2E) blockchain games.

YGG lends out nonfungible token (NFT) gaming assets to Guild players so that they can earn rewards from a long list of P2E games without having to front the costs of purchasing the NFTs themselves. The guild boasts assets from widely popular games such as Axie Infinity and Splinterlands.

In an announcement shared with Cointelegraph on Nov. 16, YGG revealed that it had backed eight games with “strong play-to-earn models” including Influence, CyBall, Thetan Arena, KOGs SLAM!, MOBOX, Aavegotchi, DeHorizon and Genopets.

Sarutobi Sasuke, YGG’s head of partnerships, emphasized that the guild seeks out games with strong community involvement and “fair gaming economies.”

“The team reviews the gameplay and game economics to ensure that the games have a robust and fair game economy that rewards players adequately for the time and effort put in by them,” he said.

YGG has snapped up a wide range of NFT assets from the games such as tokenized plots of land and avatars. While some of the gaming projects are in their formative or pre-launch stages, others are already on the market such as Aavegotchi and Mobox.

Aavegotchi is an Ethereum-based NFT project inspired by the popular Japanese virtual pet game Tamagotchi. Mobox is a Binance Smart Chain-based gaming platform that builds yield farming structures into its games. According to Coingecko, Aavegotchi (GHST) and Mobox (MBOX) have a market cap of $145 million and $340 million each.

Microsoft gaming exec cautious of NFTs

While many popular brands and companies have jumped wholeheartedly on the NFT bandwagon, Microsoft's head of gaming Phil Spencer said he is cautious about integrating the tech with the Xbox Store.

During a Nov. 17 interview with Axios, Spencer stated that, while NFT gaming is on the “up,” he has witnessed a lot of unsavory behavior in the sector:

“What I'd say today on NFT[s] is, I think there's a lot of speculation and experimentation that's happening, and that some of the creative that I see today feels more exploitive than about entertainment."

He conceded that not every NFT game is exploitative and that the sector is “kind of in that journey of people figuring it out.”

“And I can understand that early on you see a lot of things that probably are not things you want to have in your store,” he said.

Spencer said that if Xbox does opt to list NFT games in the Xbox Store, it will actively weed out anything that it deems as not beneficial to the user, noting that “we don't want that kind of content.

Quiznos starts NFT side-hustle

United States-based fast-food sandwich giant Quiznos has taken the plunge into NFTs via a partnership with Crypto.com.

The firm’s debut NFT collection named “Out of this World” featured five open editions NFTs or “sandwich coins” depicting astronauts in space either holding or hunting for top digital assets such as Dogecoin (DOGE), Ether (ETH) and Bitcoin (BTC).

The sale was hosted on Crypto.com and ended on Nov. 16, with the drop generating around $176,975 from a total of 4,403 NFT purchases.

In a Nov. 15 announcement, Quiznos said that proceeds from the sale would go to World Central Kitchen, a nonprofit that provides free food to communities in times of crisis.

“We are delighted that Quiznos chose our platform to launch this NFT campaign in support of efforts to help those in need at a critical time for our planet," said Crypto.com’s executive vice president and global head of NFT Joe Conyers III.

"We view this as a fun way to connect our community with a beloved food brand and terrific cause,” he added.

Related: Miramax sues Tarantino over 'money grab' Pulp Fiction NFTs

Ice Cube drops ice-cold NFTs

Rap icon Ice Cube is set to drop a series of NFTs on Nifty Gateway on Nov. 17 in collaboration with digital artist Trevor Jones.

The collection consists of four 1:1 editions depicting oil paintings inspired by Ice Cube’s life story, three limited editions of varying rarity featuring digital portraits of the rapper-backed new original songs, and one open edition exclusively available to holders of Jones’ previous NFT drops on Nifty Gateway.

Ice Cube said he wanted to do something legit rather than just cash in.

"While people tried to rush me into the NFT space when they first exploded almost a year ago, I wanted to do something legitimate and create artwork I would be as proud of 20 years from now as I am about these pieces today," Ice Cube said.

The sale will close on Nov. 18, prices vary from $1,400 to $15,000 for the limited and open editions, while an opening bid price for the one of one editions hasn’t been specified.

Other Nifty News

Virtual property and gaming firm The Sandbox is opening up part of its Metaverse to players for the first time via a multi-week play-to-earn Alpha event starting on Nov. 29.

Cointelegraph reported on Nov. 16 that Google’s keyword search data shows interest in NFTs has surged to record levels, with traffic beating out search terms pertinent to many crypto assets ranked among the top ten.

Ethena secures $100 million in funding round backed by Franklin Templeton, F-Prime Capital, and Dragonfly Capital

Animoca Brands doubles valuation to $2.2B with new $65M funding round

Animoca has raised $65 million in its latest funding round, with more than 43.8 million of newly issued shares to be distributed to investors at a price of $1.51 per share.

NFT-game and virtual property developer Animoca Brands has doubled its valuation to $2.2 billion after closing a new funding round that fetched $65 million.

The latest funding round was conducted at a pre-money valuation of $2.2 billion, and included backing from gaming giants Ubisoft Entertainment along with Liberty City Ventures, Sequoia China, Dragonfly Capital to name a few.

It’s more vindication for a company that was kicked off the Australian Securities Exchange (ASX) in March 2020, in part for its involvement in cryptocurrencies.

According to the Oct. 20 announcement from the firm, more than 43.8 million newly issued shares will be distributed to investors at a price of AUD $2 per share, or USD $1.51.

Animoca has now raised a total of $203.88 million in 2021, with the firm becoming a crypto unicorn in June when it raised $138.88 million as part of two tranches of a capital raise at a valuation of $1 billion.

The brand-focused metaverse and interactive content company said the latest funding will go towards funding “strategic investments and acquisitions, product development, and licenses for popular intellectual properties.”

Animoca co-founder Yat Siu outlined the company’s vision around digital ownership and NFTs moving forward:

“In 2018 we laid out a strategy based on our assessment that in the future digital property rights would revolutionize industries by expanding financial inclusion, and that this significant change would start with NFT adoption in games. That future is already here.”

“With the backing of our new strategic investors, Animoca Brands will continue to advance blockchain in gaming — and beyond — to introduce billions of gamers and Internet users to true digital ownership,” he added.

Related: NFT gaming proposition in question as regulators and traditional gaming pullback

This is another sign of big money pouring into NFT gaming and virtual property-focused firms.

Oct. 19, Galaxy Interactive, a venture capital firm focused on next-generation interactive technology, announced that it had raised $325 million from 70 different investors for its second fund focused on virtual and augmented reality, artificial intelligence and NFT gaming.

Ethena secures $100 million in funding round backed by Franklin Templeton, F-Prime Capital, and Dragonfly Capital