Gaming
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Roblox is using M&A to bulk up its social infrastructure, announcing Monday morning that they had acquired the team at Guilded that has been building a chat platform for competitive gamers.
The service competes with gaming chat giant Discord, with the team’s founders telling TechCrunch in the past that as Discord’s ambitions had grown beyond the gaming world, its core product was meeting fewer competitive gaming needs. Like Discord, users can have text and voice conversations on the Guilded platform, but Guilded also allowed users to organize communities around events and calendars, with plenty of specific functionality designed around ensuring that tournaments happened seamlessly.
The startup’s product supported hundreds of games, with specific functionality for a handful of titles, including League of Legends, Fortnite, CS: GO and, yes, Roblox. Earlier this year, the company launched a bot API designed to help nontechnical users build bots that could enrich their gaming communities.
Guilded had raised $10.2 million in venture capital funding to date according to Crunchbase, including a $7 million Series A led by Matrix Partners early last year. The company launched out of Y Combinator in mid-2017.
Terms of the Roblox deal weren’t disclosed. In an announcement post, Roblox detailed that the Guilded team will operate as an independent product group going forward. In a separate blog post, Guilded CEO Eli Brown wrote that existing stakeholders will be able to continue using the product as they have previously.
“Everyone – including communities, partners, and bot developers – will be able to keep using Guilded the same way you are now,” Brown wrote. “Roblox believes in our team and in our mission, and we’re going to continue to operate as an independent product in order to achieve it.”
Roblox has seen profound success and heightened investor attention in recent years as the pandemic has pushed more gamers online and brought more users into the fold, but that success has drawn the attention of competitors. In June, Facebook acquired a small Roblox competitor called Crayta, with CEO Mark Zuckerberg announcing just weeks ago that he planned to transform Facebook into a “metaverse” company, using a term many have come to associate closely with what Roblox has been building. Guilded represents an opportunity for Roblox to bring its user base deeper inside its own suite of products, creating a social infrastructure that keeps users engaged.
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Niantic continues to push forward in its quest to build a 3D map of the world.
This morning the company announced that it has acquired Scaniverse, an iPhone/iPad app for scanning objects and environments in high-resolution 3D.
A rep for Niantic tells me that Scaniverse will remain on the App Store, with plans to continue supporting it as a standalone app. Features previously limited to a $17-per-year “Pro” subscription, including higher-resolution processing and support for exporting models to other 3D software, will now be free.
As I first wrote about years ago, one of Niantic’s goals is to build a detailed and endlessly-evolving 3D map of the world — a step they see as fundamental to enabling true, rich augmented reality experiences if/when the world ever embraces something like AR glasses. It’s a rather massive (and never-ending) task, but one made a bit more feasible by way of its ever-roaming player base across games like Pokémon GO, Harry Potter Wizards Unite and Ingress.
As part of the deal, Scaniverse creator Keith Ito will be joining Niantic’s AR team. The company declined to outline any other terms of the acquisition. This is Niantic’s latest acquisition in the 3D mapping space, having acquired 6D.ai for an undisclosed sum in early 2020.
For context, here’s a demo of the Scaniverse app doing its thing:
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Ariana Grande strutted and soared around a candy-colored series of Fortnite sets in Epic’s latest major in-game live music event. The multi-day “tour” offered gamers and Grande fans alike plenty to enjoy while showcasing Epic’s impressively smooth and visually inventive vision for live events that millions of people can enjoy simultaneously.
Fortnite players have known an Ariana Grande event was in the works for a while, and the concert followed previous in-game events featuring rapper Travis Scott and Marshmello. Scott’s in-game performance saw 12.3 million live viewers, a number that the Ariana Grande event is likely to top, given that it ran over multiple days.
Epic put up a video of the concert that’s well worth checking out, if only to marvel at the kind of stuff that’s possible in gaming worlds these days. Experiencing the event live in the game is obviously ideal, but the video captures the experience pretty well, minus the sense of presence from having an avatar zooming around the space with grande Grande.
This time around, the show featured a handful of mini-games that gave players more to do than just flying around while a gigantic virtual pop star does her thing. The sequence kicked off with players surfing a rainbow racetrack, hitting power ups in a cross between Mario Kart and Splatoon to “Come & Go” by Juice WRLD and Marshmello. The racetrack sequence was followed by bouncing players through a Dr. Seuss-style landscape with candy-pink trees and giant floating eyeballs before dropping them into a mini-game shooting down the game’s Storm King boss to Wolfmother’s “Victorious.”
Grande made her Fortnite debut a few songs in with the 2019 hit “7 Rings,” streaking across the sky and materializing on top of a planet suspended in a sea of stars. Later she soared through the clouds with angelic wings as players followed, suspended in rainbow bubbles. In the coolest portion, a skyscraper-high Grande ascended a series of Escher-esque staircases with a giant diamond mallet before slinging it to shatter the sky, shotput-style.
Fortnite’s latest event didn’t have any huge surprises, but that’s only because Epic sets the bar so high. Getting dressed up in your favorite skin to sail around a skyscraper-tall pop star along with millions of people around the world might not be everyone’s vision for the metaverse, but Fortnite’s wildly imaginative live events are a taste of the future that here’s right now.
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The Chinese government’s crackdown on its domestic technology industry continues, with Tencent under fresh pressure despite the company’s efforts to follow changing regulatory expectations.
News broke over the weekend that Beijing filed a civil suit against Tencent “over claims its messaging-app WeChat’s Youth Mode does not comply with laws protecting minors,” per the BBC. And NetEase, a major Chinese technology company, will delay the IPO of its music arm in Hong Kong. Why? Uncertain regulations, per Reuters.
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The latest spate of bad news for China’s technology industry follows a raft of regulatory changes and actions by the nation’s government that have deleted an enormous quantity of equity value. After a period of relatively light-touch regulatory oversight, domestic Chinese technology companies have found themselves on defense after the Chinese Communist Party (CCP) came after their market power in antitrust terms — and some of their business operations from other perspectives. Sectors hit the hardest include fintech and edtech.
Gaming is also in the CCP crosshairs.
After state media criticized the gaming industry as providing the digital equivalent of drugs to the nation’s youth last week, shares of companies like Tencent and NetEase fell. Tencent owns Riot Games, makers of the popular League of Legends title. NetEase generated $2.3 billion in gaming revenue out of total revenues of $3.1 billion in its most recent quarter.
NetEase stock traded around $110 per share in late July. It’s now worth around $90 per share after expectations shifted in light of the gaming news, indicating that investors are concerned about its future performance. Tencent’s Hong Kong-listed stock has also fallen, from HK$775.50 to HK$461.60 this morning.
Tencent tried to head off regulatory pressure, announcing changes to how it controls access to its games after the government’s shot across the bow. The effort doesn’t appear to have worked. That Tencent is being sued by the government despite its publicly announced changes implies that its proposed curbs to youth gaming were either insufficient or perhaps moot from the beginning.
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Hello and welcome back to TechCrunch’s China roundup, a digest of recent events shaping the Chinese tech landscape and what they mean to people in the rest of the world.
The question for the tech news cycle in China these days has become: Who is Beijing’s next target? Regulatory clampdowns are common in China’s tech industry but the breadth of the recent moves has been unprecedented. No major tech giant is exempted and everyone is being attacked from a slightly different angle, but Beijing’s message is clear: Tech businesses are to align themselves with the interests and objectives of Beijing.
The government’s motivation isn’t always ideological. It could lead to policies that rein in the unruly private tutoring sector in the hope of easing pressure on students and parents. Recent orders from Beijing have strictly limited after-school tutoring, though they also sparked a wave of sympathy for public school teachers who work at lucrative tutoring centers to compensate for their meager salaries.
The effects of the education crackdown are also trickling down to internet companies. For the past few years, ByteDance had been aggressively building an online education business through a hiring and acquisition spree in part to diversify an ad-based video business. Its plan seems to be in shambles as it reportedly plans to lay off staff in its education department following recent the clampdown.
The restraints are also hitting American companies. Duolingo, the language learning app, was removed from several app stores in China. While it’s not immediately clear whether the action was the result of any policy change, the government recently, along with its restraints on extra-curriculum, barred foreign curricula in schools from K-9.
It could be tricky to read the top leaders’ minds because their messages could come through various government departments or state-affiliated media outlets, carrying different weights.
This week, Tencent is in the authorities’ crosshairs. About $60 billion of its market cap was wiped after the Economic Information Daily, an economic paper supervised by China’s major state news agency Xinhua, published an article (which was taken down shortly) describing video games as “spiritual opium” and cited the major role Tencent plays in the industry. Shares of Tencent’s smaller rival NetEase were also battered.
This certainly isn’t the first time Tencent and the gaming industry overall were slammed by the government for their impact on underage players. Tencent has been working to appease the authorities by introducing protections for young players, for instance, by tightening age checks several times.
Tencent, which has a sprawling online empire of social networks, payments and music on top of games, has also promised to “do [more social] good” through its products. And following the recent op-ed from the state paper, Tencent further restricted the amount of time and money children can spend inside games. But after all, the company still depends largely on addictive game mechanics that lure players to open loot boxes.
Tencent share prices over the past six months. Image Credits: Google Finance
The other camp of tech companies feeling the heat is those dependent on machine learning algorithms to distribute content. The Propaganda Department of the Chinese Communist Party, the country’s watchdog of public expressions, along with several other government organs, issued an advisory to “strengthen the study and guidance of online algorithms and carry out oversight over algorithmic recommendations.”
The government’s goal is to assert more control over how algorithmic black boxes affect what information people receive. Shares of Kuaishou, TikTok’s archrival in China, tanked on the news. Since its blockbuster initial public offering in February, Kuaishou’s stock price has tumbled as much as 70%. Meanwhile, the Beijing-based short video firm is shuttering one of its overseas apps called Zynn, which has caused controversy over plagiarism. But its overseas user base is also rapidly growing, crystalizing in one billion monthly users worldwide recently.
The week hasn’t ended. On Friday morning, The Wall Street Journal reported that the country’s antitrust regulator is preparing to fine Meituan, China’s major food delivery platform, $1 billion for allegedly abusing its market dominance. In 2020, Meituan earned 114.8 billion yuan or $17.7 billion in revenue.
Until recently, forcing suppliers to pick sides had been a common practice in China’s e-commerce world. Alibaba did so by forbidding sellers to list on rivaling platforms, a practice that resulted in a $2.75 billion antitrust penalty in April. We will see where the government will act next as it continues to curb the power of its tech darlings.
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With most popular online video games, there’s a huge gap between being a good player and a great one. A casual player might be able to hold their own against other casual players, only for a random pro to wander by and chew through everyone like they’re somehow playing with a different set of rules.
Could an AI-driven voice in your ear help close that gap, if only a bit? SenpAI.GG, a company out of Y Combinator’s latest batch, thinks so.
Much of that aforementioned gap boils down to practice, muscle memory and — let’s face it — natural ability. But as a game gets older/bigger/more complex, the best players tend to have a wealth of one resource that’s oh-so-crucial, if not oh-so-fun to gather: information.
Which guns do the most damage at this range? Which character is best suited to counter that character on this map? Hell, what changed in that “minor update” that flashed across your screen as you were booting up the game? Wait, why is my favorite weapon suddenly so much harder to control?
Staying on top of all this information as players discover new tactics and updates shift the “meta” is a challenge in its own right. It usually involves lots of Twitch streams, lots of digging around Reddit threads and lots of poring over patch notes.
SenpAI.GG is looking to surface more of that information automatically and help new players get good, faster. Their desktop client presents you with information it thinks can help, post-game analysis on your strategies, plus in-game audio cues for the things you might not be great at tracking yet.
It currently supports a handful of games — League of Legends, Valorant and Teamfight Tactics — with the info it provides varying from game to game. In LoL, for example, it’ll look at both teams’ selected champions and try to recommend the one you could pick to help most; in Valorant, meanwhile, it can give you an audio heads-up that one of your teammates is running low on health (before said teammate starts yelling at you to heal them), when you’ve forgotten to reload or how long you’ve got before the Spike (read: game-ending bomb) explodes.
SenpAI.GG’s in-game overlay providing League of Legends insights. Image Credits: SenpAI.GG
Just as important as the information it provides is the information it won’t provide. In my chat with him, SenpAI.GG founder Olcay Yilmazcoban seemed very aware that there’s a hard-to-define line here where “assistant” blurs into “cheating tool” — but the company follows certain rules to stay on the right side of things and prevent their players from getting banned.
They won’t, for example, ever take action on a player’s behalf — they might fire an audio cue to say “hey, you should heal that teammate,” but they won’t press the button for you. They’ll only generate their real-time insights from what’s on your screen — not anything hidden within the running process. They also won’t do things like reveal an enemy’s location just because your teammate is also running the app and can see them. Think “good player standing over your shoulder,” not “wall hack.” The company says that they’re always within each game developer’s competitive fairness guidelines, and only work with approved/provided APIs.
It’s a good idea because it’s one that, arguably, never gets old. With each new game they support, they’ve got a new potential audience to serve. Meanwhile, it’s not as if the old games/insights will expire — a game’s big ol’ book-of-stuff-you-need-to-know tends to only get bigger and more complex as a game ages and the patches pile up. There are games I’ve been playing for years where I’d still love a voice assistant that says “Oh hey, the recoil on the gun you just picked up has gotten way more intense since the last time you played.” SenpAI.GG isn’t there yet, but there’s a ton of natural room for growth.
Yilmazcoban tells me that they currently have over 400,000 active users, with a team of 11 people working on it. The base app is free, with plans to offer advanced features for a couple bucks a month.
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One of the world’s biggest video game companies is reeling after a state discrimination and sexual harassment suit kicked off a firestorm of controversy within the company. California’s Department of Fair Employment and Housing sued Activision Blizzard last week, alleging that the company fostered a “breeding ground for harassment and discrimination against women.”
Following a combative response to the lawsuit from corporate leadership, a group of employees at Blizzard will stage a walkout, which is planned for Wednesday at 10 a.m. PDT. Most employees at Blizzard continue to work remotely, but walkout participants will gather tomorrow at the gates to the company’s Irvine campus.
“Given last week’s statements from Activision Blizzard, Inc. and their legal counsel regarding the DFEH lawsuit, as well as the subsequent internal statement from Frances Townsend, and the many stories shared by current and former employees of Activision Blizzard since, we believe that our values as employees are not being accurately reflected in the words and actions of our leadership,” the organizers wrote.
In the new statement, they called for supporters to donate to organizations including Black Girls Code, the anti-sexual-violence organization RAINN and Girls Who Code.
Activision Blizzard publishes some of the biggest titles in gaming, including the Call of Duty franchise, World of Warcraft, Starcraft and Overwatch. Blizzard came under Activision’s wing through a 2008 merger and the subsidiary operates out of its own Irvine, California headquarters.
In the suit, the state agency describes a “frat house” atmosphere in which women are not only not afforded the same opportunities as their male counterparts, but are routinely and openly harassed, sometimes by their superiors.
The company pushed back last week in a fiery statement, blaming “unaccountable state bureaucrats that are driving many of the state’s best businesses out of California” for pursuing the lawsuit. Activision Blizzard Executive Vice President Frances Townsend, former Homeland Security adviser to George W. Bush, echoed that aggressive messaging in an internal memo, slamming the lawsuit as a “distorted and untrue picture of our company.”
In an open letter published Monday, the walkout’s organizers condemned Blizzard’s response to the lawsuit’s allegations. “We believe these statements have damaged our ongoing quest for equality inside and outside of our industry,” they wrote. “ … These statements make it clear that our leadership is not putting our values first.”
More than 2,600 employees signed the letter, which demands an end to mandatory arbitration clauses that “protect abusers and limit the ability of victims to seek restitution,” improved representation and opportunities for women and nonbinary employees, salary transparency and a full audit of diversity, equity and inclusion at the company.
On Twitter, streamers, gamers, game devs and former employees expressed support for Wednesday’s walkout under the hashtag #ActiBlizzWalkout, with some calling for a blackout on Activision Blizzard games as a show of solidarity. Others called for streamers to use the walkout time slot to raise awareness about rampant sexual harassment and discrimination in gaming culture at large.
One Blizzard employee shared a photo of the company’s iconic statue depicting an axe-wielding orc, a central feature of its Irvine headquarters. Three plaques displaying corporate values that surround the statue had been covered with paper: “Lead responsibly,” “play nice, play fair,” and “every voice matters.”
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Here at memoryOS, we have a saying we repeat often: “Most of the Kickstarter happens before the actual Kickstarter.”
Preparation is the key. But even if you understand that most of the work is done in advance, you should still prepare yourself for some sleepless nights after the launch date. The usual startup mantra will apply to your crowdfunding campaign just as well: Measure, analyze and adjust along the way.
As you may know, crowdfunding fits some B2C products better than it does others. So to give you our product context here, memoryOS is a gamified app that teaches memorization skills with the help of virtual mind palaces and interactive microlessons taught by our co-founder, two-time World Memory Champion, Jonas von Essen.
Image Credits: memoryOS (opens in a new window)
Before becoming the most funded app on Kickstarter and getting it 6,400% funded (and carrying it further to the Indiegogo platform right after), we spent countless hours researching down the rabbit hole of crowdfunding tips and tricks. We also had calls with several top-tier crowdfunding project creators who were kind enough to answer our questions and share bits of knowledge from their experience.
We’re sharing our approach (and secrets) to building a successful crowdfunding campaign because we know just how tough it can be to launch your own product. So here is a complete 10-step guide:
You should have a unique idea for a product that would solve at least one problem for your target audience. The proven approach is to set two major hypotheses right at the start and then work on getting them tested:
You will need to build a base prototype to test the first hypothesis and, if it works, you can then work on turning it into an MVP or a short demo version for your future commercial product. You can then get people to test it for free and prepay for the full version.
Getting people to actually back their interest with their wallet means you already have customers, not merely enthusiasts, and it significantly increases the chances of a successful project.
Yes, it’s important that you get people to pay a minimum reservation deposit at this point and receive their commitment to pay the remaining amount for the full product later on. Getting people to actually back their interest with their wallet means you already have customers, not merely enthusiasts, and it significantly increases the chances of a successful project.
As soon as you have something to test, conduct short surveys to better understand your customers by gathering and analyzing the reasons why and for what purpose(s) they would want your product.
Here at memoryOS, we called the first couple thousand of our leads and had many insightful conversations to help us connect to our audience on a more personal and emotional level.
Once you have a demo or prototype for the users to test, make sure to add a feedback form right at the end of their experience (or gather feedback using Google Forms for surveys, or via email inquiries).
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Playdate, the adorable whimsy-and-nostalgia-box/handheld game system built by Panic (with some help from Teenage Engineering), has taken one more big step toward reality: it has an official preorder date. And it’s soon!
The company announced this morning that preorders for the handheld will go live on July 29th at 10 a.m. Pacific.
Looking to get one from the first batch? Here’s the other stuff you need to know:
Panic first announced the Playdate in 2019. Games on the Playdate are released in “seasons”; in season one, two new titles will be released each week for 12 weeks. As experimental as it is charming, Panic is pretty open about what to expect of the titles. From their product page: “Some are short. Some are long. Will you love them all? Probably not. Will you have a great time trying them? Absolutely.”
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DraftKings is charging into the NFT game, announcing a marketplace aimed at curating sports and entertainment-themed digital collectibles for its audience of enthusiasts. The platform is “debuting later this summer,” and showcases another potentially lucrative expansion for the fantasy sports betting company.
DraftKings is entering a market that is both crowded and sparse — with plenty of NFT marketplace options for today’s niche group of collectors, though offerings are still light when considering the billions that have flowed through the space in the first several months of the year. This week, investors gave NFT marketplace OpenSea a $1.5 billion valuation. Dapper Labs, which makes NBA Top Shot, recently raised at a reported $7.5 billion valuation.
Dapper’s existing sway in the space will leave DraftKings pursuing opportunities outside exclusive league partnerships. NBA Top Shot allows players to buy “Moments” from NBA history, clips of actual game and player footage to which it has access via league and players’ association partnerships. In addition to the NBA, Dapper has already partnered with other leagues.
DraftKings’ foothold in the space will come from an exclusive partnership with Autograph, a newly launched NFT startup co-founded by quarterback Tom Brady. The company has inked exclusive NFT deals with some top athletes, including Tiger Woods, Wayne Gretzky, Derek Jeter, Naomi Osaka and Tony Hawk, hoping to build out its platform as the hub for sports personality collectibles.
Aside from the partnerships, DraftKings is hoping to get a leg up in the space by further simplifying the user onboarding process, allowing users to buy NFTs without loading a wallet with cryptocurrency, instead purchasing with USD. When the platform launches, users will be able to purchase NFTs from DraftKings and resell or trade them through the platform.
For DraftKings, which has raised some $720 million in funding since launch in 2012, the NFT expansion could offer an opportunity of funneling their existing audience into the new vertical. Few existing tech startups have made noteworthy expansions into the NFT world despite plenty of hype and investor interest. DraftKings co-founder Matt Kalish tells TechCrunch that the startup’s devoted community is its biggest asset to winning in the rising space.
“DraftKings has millions of people in our community who show up to out-platform every day and every week,” Kalish says. “We think our biggest advantage is the strength and size of our community… [We] will bring a lot of eyeballs to the table.”
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