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Apple contends Epic’s ban was a ‘self-inflicted’ prelude to gaming the App Store

Apple has filed legal documents opposing Epic’s attempt to have itself reinstated in the iOS App Store, after having been kicked out last week for flouting its rules. Apple characterizes the entire thing as a “carefully orchestrated, multi-faceted campaign” aimed at circumventing — perhaps permanently — the 30% cut it demands for the privilege of doing business on iOS.

Epic last week slyly introduced a way to make in-app purchases in its popular game Fortnite without going through Apple. This is plainly against the rules, and Apple soon kicked the game, and the company’s other accounts, off the App Store. Obviously having anticipated this, Epic then published a parody of Apple’s famous 1984 ad, filed a lawsuit and began executing what Apple describes quite accurately as “a carefully orchestrated, multi-faceted campaign.”

In fact, as Apple notes in its challenge, Epic CEO Tim Sweeney emailed ahead of time to let Apple know what his company had planned. From Apple’s filing:

Around 2am on August 13, Mr. Sweeney of Epic wrote to Apple stating its intent to breach Epic’s agreements:
“Epic will no longer adhere to Apple’s payment processing restrictions.”

This was after months of attempts at negotiations in which, according to declarations from Apple’s Phil Schiller, Epic attempted to coax a “side letter” from Apple granting Epic special dispensation. This contradicts claims by Sweeney that Epic never asked for a special deal. From Schiller’s declaration:

Specifically, on June 30, 2020, Epic’s CEO Tim Sweeney wrote my colleagues and me an email asking for a “side letter” from Apple that would create a special deal for only Epic that would fundamentally change the way in which Epic offers apps on Apple’s iOS platform.

In this email, Mr. Sweeney expressly acknowledged that his proposed changes would be in direct breach of multiple terms of the agreements between Epic and Apple. Mr. Sweeney acknowledged that Epic could not implement its proposal unless the agreements between Epic and Apple were modified.

One prong of Epic’s assault was a request for courts to grant a “temporary restraining order,” or TRO, a legal procedure for use in emergencies where a party’s actions are unlawful, a suit to show their illegality is pending and likely to succeed, and those actions should be proactively reversed because they will cause “irreparable harm.”

If Epic’s request were to be successful, Apple would be forced to reinstate Fortnite and allow its in-game store to operate outside of the App Store’s rules. As you might imagine, this would be disastrous for Apple — not only would its rules have been deliberately ignored, but a court would have placed its imprimatur on the idea that those rules may even be illegal. So it is essential that Apple slap down this particular legal challenge quickly and comprehensively.

Apple’s filing challenges the TRO request on several grounds. First, it contends that there is no real “emergency” or “irreparable harm” because the entire situation was concocted and voluntarily initiated by Epic:

Having decided that it would rather enjoy the benefits of the App Store without paying for them, Epic has breached its contracts with Apple, using its own customers and Apple’s users as leverage.

But the “emergency” is entirely of Epic’s own making…it knew full well what would happen and, in so doing, has knowingly and purposefully created the harm to game players and developers it now asks the Court to step in and remedy.

Epic’s complaint that Apple banned its Unreal Engine accounts as well as Fortnite related ones, Apple notes, is not unusual, considering the accounts share tax IDs, emails and so on. It’s the same “user,” for their purposes. Apple also says it gave Epic ample warning and opportunity to correct its actions before a ban took place. (Apple, after all, makes a great deal of money from the app as well.)

Apple also questions the likelihood of Epic’s main lawsuit (independent of the TRO request) succeeding on its merits — namely that Apple is exercising monopoly power in its rent-collecting on the App Store:

[Epic’s] logic would make monopolies of Microsoft, Sony and Nintendo, just to name a few.

Epic’s antitrust theories, like its orchestrated campaign, are a transparent veneer for its effort to co-opt for itself the benefits of the App Store without paying or complying with important requirements that are critical to protect user safety, security,
and privacy.

Lastly Apple notes that there is no benefit to the public interest to providing the TRO — unlike if, for example, Apple’s actions had prevented emergency calls from working or the like, and there was a serious safety concern:

All of that alleged injury for which Epic improperly seeks emergency relief could disappear tomorrow if Epic cured its breach…All of this can happen without any intervention of the Court or expenditure of judicial resources. And Epic would be free to pursue its primary lawsuit.

Although Apple eschews speculating further in its filings, one source close to the matter suggested that it is of paramount importance to that company to avoid the possibility of Epic or anyone else establishing their own independent app stores on iOS. A legal precedent would go a long way toward clearing the way for such a thing, so this is potentially an existential threat for Apple’s long-toothed but extremely profitable business model.

The conflict with Epic is only the latest in a series going back years in which companies challenged Apple’s right to control and profit from what amounts to a totally separate marketplace.

Most recently Microsoft’s xCloud app was denied entry to the App Store because it amounted to a marketplace for games that Apple could not feasibly vet individually. Given this kind of functionality is very much the type of thing consumers want these days, the decision was not popular. Other developers, industries and platforms have challenged Apple on various fronts as well, to the point where the company has promised to create a formal process for challenging its rules.

But of course, even the rule-challenging process is bound by Apple’s rules.

You can read the full Apple filing below:

Epic v. Apple 4:20-cv-05640… by TechCrunch on Scribd

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Fortnite for Android just got axed from the Google Play Store too

After Epic Games picked a fight with Apple over the sizable chunk of fees the company takes on transactions in its mobile ecosystem, it looks like the Fortnite developer will be waging a war on two fronts.

Epic added a direct payment option to its mobile game early Thursday, prompting Apple to remove Fortnite from the App Store. Now, the Android version of Fortnite has gone missing from Google’s own app marketplace too.

In a statement, Google defended the decision to remove Fortnite for breaking its platform rules:

The open Android ecosystem lets developers distribute apps through multiple app stores. For game developers who choose to use the Play Store, we have consistent policies that are fair to developers and keep the store safe for users. While Fortnite remains available on Android, we can no longer make it available on Play because it violates our policies. However, we welcome the opportunity to continue our discussions with Epic and bring Fortnite back to Google Play.

While Epic’s legal filing and in-game spoof of Apple’s iconic 1984 commercial make for a flashy fight, it’s not Epic’s first tangle over the mobile version of Fortnite. The company actually decided to keep Fortnite out of the Google Play Store back in 2018 over complaints very similar to its current crusade against the 30% cut that Google and Apple take from sales in their app stores. Fortnite is free-to-play, but players buy seasonal passes that unlock its progression system as well an in-game cosmetic items like skins that make Epic a ton of money and don’t affect gameplay.

When Epic gave in and brought Fortnite back to the Google Play Store this April, it did so with a statement condemning Google’s treatment of apps outside of its own app marketplace. While all apps in Apple’s iOS come from the App Store, Google actually does allow apps like Fortnite to be sideloaded outside of Google Play, but the experience is generally less smooth and accompanied with warnings about malware.

“Google puts software downloadable outside of Google Play at a disadvantage, through technical and business measures such as scary, repetitive security pop-ups for downloaded and updated software, restrictive manufacturer and carrier agreements and dealings… Because of this, we’ve launched Fortnite for Android on the Google Play Store,” an Epic Games spokesperson said in April.

Fortnite is still available on Android, just not through Google’s app store. On its website, Epic points players to a direct download via QR code and the game is also available through Samsung’s Galaxy Store on supported devices.

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Daily Crunch: Apple removes Fortnite from the App Store

Epic Games takes on Apple, Instagram fixes a security issue and Impossible Foods raises $200 million. This is your Daily Crunch for August 13, 2020.

The big story: Apple removes Fortnite from the App Store

The controversy over Apple’s App Store policies has expanded to include Epic Games and its hit title Fortnite. The company introduced a direct payment option for its in-game currency on mobile, leading Apple to remove the app for violating App Store rules.

“Epic enabled a feature in its app which was not reviewed or approved by Apple, and they did so with the express intent of violating the App Store guidelines regarding in-app payments that apply to every developer who sells digital goods or services,” Apple said.

Epic, meanwhile, said it’s taking legal action against Apple, and that the game’s removal is “yet another example of Apple flexing its enormous power in order to impose unreasonable restraints and unlawfully maintain its 100% monopoly over the iOS In-App Payment Processing Market.”

The tech giants

Bracing for election day, Facebook rolls out voting resources to US users — The hub will centralize election resources for U.S. users and ideally inoculate at least some of them against the platform’s ongoing misinformation epidemic.

Instagram wasn’t removing photos and direct messages from its servers — A security researcher was awarded a $6,000 bug bounty payout after he found Instagram retained photos and private direct messages on its servers long after he deleted them.

Slack and Atlassian strengthen their partnership with deeper integrations — At the core of these integrations is the ability to get rich unfurls of deep links to Atlassian products in Slack.

Startups, funding and venture capital

Impossible Foods gobbles up another $200 million — Since its launch the plant-based meat company has raised $1.5 billion from investors.

Omaze raises $30 million after expanding beyond celebrity campaigns — The Omaze model has shifted away from celebrity-centric campaigns to include fundraisers offering prizes like an Airstream Caravel or a trip to the Four Seasons resort in Bora Bora.

We’re exploring the future of SaaS at Disrupt this year — We’re bringing Canaan Partners’ Maha Ibrahim, Andreessen Horowitz’s David Ulevitch and Bessemer Venture Partners’ Mary D’Onofrio together to help explain how the landscape has changed.

Advice and analysis from Extra Crunch

How to get what you want in a term sheet — Lior Zorea discusses the reality of term sheets.

Five success factors for behavioral health startups — Courtney Chow and Justin Da Rosa of Battery Ventures argue that behavioral health is particularly suited to benefit from the digitization trends COVID-19 has accelerated.

Minted.com CEO Mariam Naficy shares ‘the biggest surprise about entrepreneurship’ — Naficy got into the weeds with us on topics that founders don’t often discuss.

Everything else

Digital imaging pioneer Russell Kirsch dies at 91 — It’s hard to overstate the impact of his work, which led to the first digitally scanned photo and the creation of what we now think of as pixels.

AMC will offer 15-cent tickets when it reopens 100+ US theaters on August 20 — The theater juggernaut announced plans to reopen more than 100 theaters in the U.S. on August 20.

The Daily Crunch is TechCrunch’s roundup of our biggest and most important stories. If you’d like to get this delivered to your inbox every day at around 3pm Pacific, you can subscribe here.

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It’s not just about e-mail, stupid

Hello and welcome back to Equity, TechCrunch’s venture capital-focused podcast, where we unpack the numbers behind the headlines.

Your humble Equity team is pretty tired but in good spirits, as there was a lot to talk about this week. But, first, three things to start us off:

All that said, here’s what we talked about on the show:

  • Epic Games is looking to raise a huge stack of cash (Bloomberg, VentureBeat) at a new, higher valuation. We were curious about how its lower-cut store could help it gain inroads with developers big and small. That part of the chat, the take-rate of the Fortnite parent company on the work of others was very cogent to the other main topic of the day:
  • Apple vs. DHH. So Hey launched this week, and the new spin on email quickly overshadowed its product launch by getting into a spat with Apple about whether it needs to add the ability to sign up for the paid service on iOS, thus giving Apple a cut of its revenue. DHH and crew do not agree. Apple is under fire for anti-competitive practices at home and abroad — of varying intensity, and from different sources — making this all the more spicy.
  • Upgrade raises $40 million for its credit-focused neobank.
  • Degreed raises $32 million for its upskilling platform.
  • And, at the end, our take on the current health of the startup market. There have been a sheaf of reports lately about what is going on in startup land. We gave our take.

And that’s that. Have a lovely weekend and catch up on some sleep.

Equity drops every Friday at 6:00 am PT, so subscribe to us on Apple PodcastsOvercastSpotify and all the casts.

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Epic Games announces Unreal Engine 5, shows off boundary-pushing PlayStation 5 demo

After eight years of Unreal Engine 4, Epic Games is finally ready to talk about Unreal Engine 5, which they’re announcing will launch in preview early next year with a wider launch by the year’s end.

Unreal Engine 5 is all about harnessing the performance of next-generation consoles like the PlayStation 5 and Xbox Series X. The consoles support wild resolutions and frame rates, but Epic Games CEO Tim Sweeney was most excited about how the new hardware handles data storage, something he says will lead to “state of the art performance” better than any gaming PC.

For Unreal Engine 5, the big evolution appears to be dynamic rendering, allowing developers to drop massively complex objects with millions of polygons into their games and lean on the engine to determine how intricately the object can be rendered onscreen. In the case of the PlayStation 5, that’s pretty damn intricate. Epic Games showcased the new engine running on the PS5 in a truly stunning demo.

“We’re turning scalability from a developer’s problem into our problem,” Sweeney says.

Sweeney says the demo is the representation of what happens when the polygons being rendered shrink to the size of individual pixels. “This is all the detail that you can get until you get a higher-resolution monitor, or until 8K or 16K come along,” he says.

Unreal Engine 5’s major advances are centered around a pair of new products called Nanite and Lumen. Nanite deals with said dynamic rendering product allowing for massively detailed scenery, while Lumen is a new pipeline for dynamic scene illumination, allowing for more life-like lighting of digital assets.

The new update will also push connectivity further, bringing Epic Online Services into the fold with toolsets that can help developers make their online gameplay leverage multiple platforms, connecting mobile, console and PC, just as Fortnite has.

Alongside news of the big update’s release, Epic Games has shared that Fortnite, which will unsurprisingly be leveraging Unreal Engine 5, will be a launch title on the PlayStation 5 and Xbox Series X. While the game’s cartoonish art style won’t be pushing boundaries quite as much as hyperrealistic titles like the one above, adding the next-gen consoles means more platforms on which to reign supreme.

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We need more video games that are social platforms first, games second

During these long, mundane physically-distant days, stretching on into an uncertain future like an ever-lengthening beigeish corridor, it’s impossible not to miss hanging out with friends. Especially the kind of hanging out where you’re not really doing anything in particular, not talking about any one thing—just kind of being.

As we continue to stay physically distant from one another, it can be hard to feel socially present with the tools we have. Even with Zoom and other more casual chat apps, video chat can feel sort of flat. (And for those of us lucky enough to be working from home, visiting friends after work with the same tools we use to do work stuff doesn’t always feel great.) More often than not, we sit, stationary at our designated video-chat-spot, trade reports from self-quarantine and maybe drag in a cat or a kid or two.

But even untethered from our desks with more playful video chat apps or innovations like Facebook’s Portal and its roving eye, there’s still something else that doesn’t get conveyed. With flat screens, we have little sense of our physical selves in relation to one another. Socializing spatially, as it turns out, is something we probably took for granted. But the gaming world has understood this for years.

Now more than ever, we need creative ways to feel present with other people. The whole crisis looks like a huge opportunity for the gaming industry, but also one for more transcendent digital social experiences that don’t just look like playing a few rounds of Call of Duty after work. Hopefully, these experiences could be so imaginative that we don’t even know what they could look like yet.

If VR had delivered on its early promise, we’d all probably be living in it right now. The idea of having some kind of shared virtual realm is still a potent one, but the additional hardware has proven too prohibitive to get the average person on board (for now, at least) and even the coolest VR experiences remain niche. Still, it’s clear that we want to come together, not just in Instagram DMs and email threads, but as avatars navigating shared spaces. Somehow.

Virtual worlds getting it right

If the mainstream crossover success of Animal Crossing is any indication, people have a huge appetite for virtual spaces right now. Even with Nintendo’s truly painful online multiplayer experience, there’s something fun and special about visiting a friend, bopping each other with nets and showing them your new digs.

In Animal Crossing, this is truly a more-than-the-sum-of-its-parts experience. The last time I genuinely laughed and could not stop was visiting my younger sister’s Animal Crossing island right after the game launched. In spite of the interface’s few emotes and harsh character limits, her weird sense of humor managed to bubble up through the game’s limitations. And those constraints made it more special, for some reason. When I left her island I felt a pang of sadness at leaving her funny little physical manifestation, running circles around my own. It felt different than signing out of a video chat or dropping out of a conversation via text.

These experiences are happening on an individual level, but also a collective one—and people are getting creative. One of the writers from Rogue One just made his own in-game Animal Crossing talkshow, complete with its own tiny guest couch and cityscape view.

A developer in New York even launched a dev conference that took place entirely on an Animal Crossing island. Much like a normal conference, “Deserted Island DevOps” boasted speakers, moderators and even talks to be uploaded to YouTube after the fact.

Plenty of players are using Animal Crossing for more intimate get-togethers too, like celebrating Ramadan and Passover last month or just gathering far-flung friends or family together in one place.

Thanks to everyone who came out to yet another @animalcrossing Suhoor. It was super lovely to talk to and meet all of you from all around the world <3 pic.twitter.com/G9a8SNTFe0

— Rami Ismail (@tha_rami) April 29, 2020

 

The pandemic is showing us that the sweet spot of mainstream virtual presence might be something more than a Zoom-like video conference but less than a full-on virtual reality experience. Video games, or more specifically video games as platforms, seem to be resonating right now, even among the kinds of people who wouldn’t identify as gamers. That last bit is important.

This is something that Fortnite maker Epic Games has been doing right for a while now. There’s a reason that Fortnite, like Animal Crossing, brought non-gamers into the fold. Sure, Fortnite is fun and addictive, but lots of games are fun and addictive—and Fortnite is much harder than a lot of those games.

Epic’s real innovation is its buttery-smooth social layer that seamlessly connects players across platforms. If you can talk a friend into downloading an app, you’re in business. Of course, other games get this right too (Minecraft comes to mind, of course, and others) but timing is everything right now. And Fortnite’s team is cleverly iterating on its already-good ideas.

should i play in party royale tonight…? pic.twitter.com/PQHmkrnF9X

— Thomas Wesley (@diplo) May 1, 2020

This week, Epic added a new deliberately chill game mode called Party Royale to Fortnite—a new island just for hanging out with friends. Littered with appropriately zany non-lethal weapons like throwable hamburgers and paintball guns, Party Royale is a designated space where you can take a group and chat while doing mindless yet amusing nonsense, like awkwardly kicking a soccer ball around (I did this with a total stranger for 20 minutes for some reason!) or driving virtual ATVs off virtual precipices.

And like much of Epic’s battle royale hit, the island itself is over-the-top weird, stocked with everything from a pirate ship to a music festival grounds awash in colorful lights, gigantic neon dancers and a very psychedelic vibe, molly not included. There’s even a drive-in movie screen, like another area of the main game, which could signal interesting things to come. If we’re lucky and Epic expands it out, Fortnite’s newest casual online virtual space could evolve into something pretty interesting.

Fortnite is a game ostensibly about killing people before they kill you, but it’s also a concert venue—and that hints at Epic’s deeper ideas about the game as a versatile social platform. The game held its latest big in-game show event last month, this time featuring a skyscraper-height Travis Scott who performed as he stormed around a bucolic-turned-kaleidoscopic version of the Fortnite map. 12 million people tuned in, besting the 10 million who played during the more modest Marshmello in-game EDM show a year prior. Whether you even listen to his music or not, the wildly visually imaginative event was, by all accounts, cool as hell.

Video games should evolve to meet the moment

For anyone who’s spent any time in massively multiplayer online role-playing games (MMORPGs), this will all sound familiar. These games have long, vibrant history of drawing huge numbers of people together into persistent shared virtual spaces and letting them express themselves. Curating outfits, decorating spaces and even making choices around playstyle and faction affiliation are all ways to express aspects of who you are and what you’re about in a virtual world populated by other people doing the same. As someone who played World of Warcraft for years, this was the real appeal of the game for many of us. The game itself—quests, dungeons and the rest—was secondary.

During its peak ten years ago, World of Warcraft had as many active subscribers as players who tuned into the Travis Scott event—12 million. Since then, gaming exploded into the mainstream and by late 2018, Fortnite boasted almost 80 million active players. Online multiplayer itself bounded forward too, mostly through the success of blockbuster first-person shooters—usually grim, well-funded and vaguely or overtly militaristic games that routinely court one kind of gamer. Playful, candy-colored shooters like Fortnite, Splatoon and Overwatch emerged to extend a hand to casual players, even non-gamers, but there’s still plenty of room for online gaming to move beyond shooters.

The wild popularity of Minecraft carved out a path for cooperative gaming not just because building stuff is incredibly fun, though that’s true too, but because doing anything new with friends in a virtual space is really cool. Scrappier games like the incredible No Man’s Sky could do for exploration what Minecraft did for building, but with an indie developer’s budget, big ideas about multiplayer play can only get so far. Historically, the lion’s share of industry resources still get funneled toward reliably profitable military-style shooters. But with the world changing, trends could transform too. Just look at sales of Animal Crossing’s social feng shui sim dominating sales during the first months of the epidemic.

There’s a big opportunity right now for games offering a common social experience that’s magnetic enough to draw in the kind of people who don’t even play games. For those of us stuck at home, imaginative gaming worlds offer not just their usual escape from the moment’s stresses, but a way to share space when we can’t come together.

We just need more of them to visit.

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Fortnite hosted a psychedelic Travis Scott concert and 12.3M people watched

The idea of an in-game Travis Scott concert might seem a little silly — particularly if, like me, you’re not really a Fortnite player.

Yes, the popular multiplayer game has hosted other promotional events for movies and music. But even if all this COVID-19 imposed isolation has left you hungry for live performances, why not watch actual footage of Travis Scott in concert?

What Scott and Fortnite-maker Epic Games delivered, however, is a gloriously surreal “astronomical” event, with an enormous, kaiju-sized Scott avatar looming over players and teleporting around the venue while the visuals around him get increasingly psychedelic. It’s something that could only happen in a virtual concert, and that’s what makes it delightful.

Plus, the event was viewed by far more people than could ever pack into even the largest concert venue. Epic Games said 12.3 million concurrent players participated, a new record for the game.

You can watch for yourself in the video above, but if you want to actually interact with a giant Travis Scott while he sings “Sicko Mode,” Epic Games is planning encore events throughout the weekend.

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Epic Games launches Fortnite on the Google Play Store and they’re not happy about it

Epic Games is finally settling its feud — kind of — with Google and putting Fortnite onto the Google Play Store, but the studio sounds pretty pissed about it.

When Fortnite launched on mobile in 2018, Epic Games very notably sidestepped the Google Play Store and pushed users to download the title directly from their website, an effort made to avoid the substantial revenue cuts that Google takes from in-app purchases of Play Store downloads. At the time, the move was understandable for Epic, which was sitting on the hottest free-to-play game of the year that was pulling in substantial revenues from in-app purchases.

After 18 months of harsh rhetoric regarding platform gatekeeping, Epic Games says that Fortnite is now available for download on the Google Play Store, though it will still be downloadable from fortnite.com moving forward.

“Google puts software downloadable outside of Google Play at a disadvantage, through technical and business measures such as scary, repetitive security pop-ups for downloaded and updated software, restrictive manufacturer and carrier agreements and dealings, Google public relations characterizing third party software sources as malware, and new efforts such as Google Play Protect to outright block software obtained outside the Google Play store,” an Epic Games spokesperson said in a statement. “Because of this, we’ve launched Fortnite for Android on the Google Play Store.”

Epic Games withholding Fortnite from the Play Store was a very clear threat to Google’s app profits, though Google argued that downloading Android software outside of the Play Store presented a clear security threat to users who could unknowingly download malware from less reputable sites.

Epic Games clearly isn’t happy with the roadblocks Google has put up to dissuade users from downloading software from the web as well as the blanket warnings Android delivers regardless of whether the publisher is considered a trusted one.

For now, it seems Google has maintained the upper hand, though Epic Games clearly isn’t satisfied with their dealings with Google.

“We hope that Google will revise its policies and business dealings in the near future, so that all developers are free to reach and engage in commerce with customers on Android and in the Play Store through open services, including payment services, that can compete on a level playing field,” Epic Game’s statement further read.

We’ve reached out to Google for comment.

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GC’s Niko Bonatsos on Y Combinator, edtech and investing in the shadow of coronavirus

This week, Extra Crunch hosted a call with General Catalyst managing director Niko Bonatsos to discuss a number of startup topics, including what the novel coronavirus is doing to investing in the Valley, as well as his thoughts on robotics, homeschooling, edtech, SMBs, international investing and what he’s looking to see today in startups. Joining me on the live call was my fellow Equity host Alex Wilhelm and a couple of dozen EC members.

If you missed this conference call for EC members, don’t fret: We’ll have more of these to come in this era of work-from-home. In the meantime, here is a lightly edited transcript, along with a recording of the call if you’d like to listen in.

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Making money from games: the future of virtual economies

Fictional portrayals of virtual worlds such as “Ready Player One” and “The Matrix” typically portray the physical and virtual worlds as distinct realms siloed from each other. Characters escape a dystopian, impoverished physical realm and enter a separate, utopian virtual realm in which they are wealthy and important.

Our non-fictional future won’t have that dichotomy. One main reason is money. Any virtual world has a virtual economy, and when that virtual economy gets really big, it integrates with our real-world economy. That is in equal parts due to market forces and government intervention.

This is part six of a seven-part series about “multiverse” virtual worlds. We will explore the dynamics of games’ virtual economies, the exchange of virtual assets for real money, challenges with money laundering and underage gambling, the compliance infrastructure needed for virtual economies, and the challenges in balancing a virtual economy’s monetary supply.

What separates virtual from “real” is the ability to make money

To many people, the idea of spending time in virtual worlds amassing in-game currency and trading goods still sounds like the geeky science fiction hobby of someone who needs to “get a real job.”

Our society gauges the worthiness of pursuits based on their social and economic productivity, and most people don’t view virtual worlds as productive places. As more people find enjoyment in virtual worlds and respect people with accomplishments in them, however, vying for accomplishment with those worlds will increasingly be viewed as socially productive. As more people start earning an income through work in virtual worlds, perception of economic productivity will quickly change, too.

Virtual worlds will be viewed as digital extensions of “the real world” and working a full-time job in a multiverse virtual world will become as normal as someone working in a social media marketing role today.

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