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Gaming infrastructure startup Pragma raises $12M from Greylock, Mark Pincus and others

Pragma is building what it calls a “backend as a service,” providing ready-made infrastructure to developers of online, live service games. And it’s announcing today that it has raised $12 million in Series A funding.

The round was led by David Thacker at Greylock, with participation from Zynga founder Mark Pincus, Oculus founder Nate Mitchell and Cloudera founder Amr Awadallah, along with previous investors Upfront Ventures and Advancit Capital. Amy Chang, who sold her business intelligence startup Accompany to Cisco, is joining Pragma’s board of directors.

Co-founder and CEO Eden Chen told me that where Unity and Unreal have built popular frontend game engines, he and his co-founder Chris Cobb (former engineering lead at Riot Games) are hoping Pragma will fill the void for a “de facto backend game engine.”

And while “many companies tried to do this” over the past decade, Chen suggested that this is the right time to launch the platform, thanks to the continued rise of live service games (like League of Legends) that have to be treated as “living, breathing products,” as well as improved tooling around infrastructure platforms like Amazon Web Services.

Pragma screenshot

Image Credits: Pragma

Pragma is launching a starter kit today designed to allow developers to quickly set up and test game loops. Meanwhile, the broader platform is currently in private beta testing with studios including One More Game (started by started by Pat Wyatt, one of Blizzard’s first employees) and Mitchell’s Mountain Top Studios.

Chen said the platform’s features fall into three broad categories — player accounts/social, game loops (including lobbies and matchmaking) and player/game data. Pragma isn’t building all of this from scratch; in some cases, it’s “acting as the integrator” for other platforms like Discord. Chen also noted that while the team plans to build a fully managed solution in the future, the current version is on-premise: “We’re building an instance of Pragma on the studio’s own infrastructure, [so they can] so they can take our code base and customize it to their own preferences.”

Pragma is initially targeting game studios with about 10 to 50 team members. Eventually, Chen hopes the platform could serve larger studios while also supporting “the democratization of these tools, so that a one- to five-person team can really leverage [them] to launch a networked, online game.”

He added, “The vision for us long term is that we really want to be innovating on the social side, creating social features that improve the game and build stronger connections.”

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Xbox Cloud Gaming beta starts rolling out on iOS and PC this week

The era of cloud gaming hasn’t arrived with the intensity that may have seemed imminent a couple years ago when major tech platforms announced their plays. In 2021, the market is still pretty much nonexistent despite established presences from nearly all of tech’s biggest players.

Microsoft has been slow to roll out its Xbox Cloud Gaming beta to its users widely across platforms, but that’s likely because they know that, unlike other upstart platforms, there’s not a huge advantage to them rushing out the gate first. This week, the company will begin rolling out the service on iOS and PC to Game Pass Ultimate users, sending out invites to a limited number of users and scaling it up over time.

“The limited beta is our time to test and learn; we’ll send out more invites on a continuous basis to players in all 22 supported countries, evaluate feedback, continue to improve the experience, and add support for more devices,” wrote Xbox’s Catherine Gluckstein in a blog post. “Our plan is to iterate quickly and open up to all Xbox Game Pass Ultimate members in the coming months so more people have the opportunity to play Xbox in all-new ways.”

The service has been available in beta for Android users since last year but it’s been a slow expansion to other platforms outside that world.

A big part of that slowdown has been the result of Apple playing hardball with cloud gaming platform providers, whose business models represent a major threat to App Store gaming revenues. Apple announced a carve-out provision for cloud-gaming platforms that would maintain dependency on the App Store and in-app purchase frameworks but none of the providers seemed very happy with Apple’s solution. As a result, Xbox Cloud Gaming will operate entirely through the web on iOS inside mobile Safari.

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Garry Kasparov launches a community-first chess platform

Four years ago, MasterClass, a platform that sells celebrity-taught classes, invited chess legend Garry Kasparov to teach a class. He said yes, but soon realized that creating a message that could satisfy a majority of players was a “struggle throughout the process.”

While the class did pretty well, Kasparov found it “a little bit annoying” that he had to downplay concepts and stick to a specific structure. So, now, Kasparov is launching a platform he says has been several years in the making: Kasparovchess.

Kasparovchess will be a platform in which legendary chess players will have free reign to share tips and tricks with players from various levels. Financed by private investors, and media conglomerate Vivendi, the company declined to disclose its total capital raised to date.

The platform, produced by Vivendi, includes documentaries, podcasts, articles and interviews between experts and known players in the chess community. Moe than 1,000 videos have been recorded to date, Kasparov said. Beyond content, Kasparovchess will have an exclusive Discord server attached to it and playing zones.

In many ways, it’s a vertical-specific version of the chess MasterClass he did years ago, with a big focus on community and variety. MasterClass, which is reportedly raising funding that would value it at $2.5 billion, has been a leader in the “edutainment” space, which monetizes off of documentary-style entertainment. One of the unicorn’s biggest characteristics, as Kasparov alluded to earlier, is that it has to appeal to a wide audience so subscribers can hop from one class to another. Within the same month, a user could go from a Kasparovchess class to general pontifications from RuPaul on self expression. The more classes that MasterClass can get you to take, the longer you’ll keep your subscription.

Image Credits: Kasparovchess

MasterClass might consider its broad view as a differentiator, but it’s clear that Kasparov views it as an opportunity.

Kasparovchess has a monthly or yearly subscription of $13.99 or $119.99, respectively. The majority of lessons from experts and retrospective analysis on games you’ve played sit behind the paywall. The premium product also grants users access to a database of 50,000 manually created puzzles that allows players to train certain skills. The product will be available to the public by the end of month.

A popular competitor already exists: Chess.com. It’s a chess server, forum and networking site that launched in 2005, with premium subscription that ranges between $5 a month or $29 a year. Kasparovchess is significantly more expensive.

Kasparov says his biggest differentiator will be a focus on community. The long-term goal of Kasparovchess is to connect global chess communities with each other, unearth prodigies that might not have access otherwise and give others access to his experiences. He thinks that remote education during the pandemic has shown the need to have more interactive solutions, beyond buzzy promises.

“It’s time to actually switch from what we’re teaching to how students can apply it,” he said. “And that helps us indirectly because chess has been recognized for centuries as a nexus for intelligence and creativity.”

Kasparov became the youngest world chess champion in 1985. He retired from public chess in 2005, and has since launched a foundation to help children have access to chess worldwide. Most recently, he helped advise for “Queen’s Gambit,” a show about a chess prodigy that became Netflix’s most-watched scripted limited series to date on the platform. The show was so ubiquitously popular that sales for chess boards soon skyrocketed.

“I was so happy because it was the first time where we could see chess as a positive factor,” he said. “We had so many years with chess being seen as potential destruction and something that could push kids to the dark area of psychological instability.”

The freshness of this message mixed with an uptick in remote education has given Kasparov confidence that his years-long project is finally ready to launch.

“It’s not just about teaching the game, or playing the game, or debating the game,” he said. Instead, he hopes people who come to the platform focus on the culture of chess, its survival and its seemingly timeless power.

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Fortnite-maker Epic completes $1B funding round

How much is Epic Games worth? Well, we’ve long ago surpassed the realm of dollar figures regular humans can contextualize. With its latest round, the gamer hit an equity valuation of $28.7 billion. Yes, “b” for “billion.” That’s a lot of micro-transactions.

Time to start talking metaverse!

Best known for the wildly successful battle royale title Fortnite, Epic just announced another $1 billion funding round, featuring a $200 million Sony Group Corporation investment. The rest of the list is, predictably, a long one, including [deep breath], Appaloosa, Baillie Gifford, Fidelity Management & Research Company LLC, GIC, T. Rowe Price Associates-managed accounts, Ontario Teachers’ Pension Plan Board, BlackRock managed accounts, Park West, KKR, AllianceBernstein, Altimeter, Franklin Templeton and Luxor Capital.

Epic vs. Apple

“We are grateful to our new and existing investors who support our vision for Epic and the Metaverse,” CEO and founder Tim Sweeney said in a statement tied to the news. “Their investment will help accelerate our work around building connected social experiences in Fortnite, Rocket League and Fall Guys, while empowering game developers and creators with Unreal Engine, Epic Online Services and the Epic Games Store.”

Sweeney has plenty of reason to be grateful, as the controlling shareholder.

It’s been a busy several months for the game maker. The company has been waging an on-going war with both Apple and Google over in-game payment revenues. A trial likely to feature some of the biggest names in tech is expected to kick off early next month.

Epic has also been using its already extremely deep coffers to purchase game developers and publishing studios, including its March acquisition of Fall Guys-maker Mediatonic. It’s clear the company is amassing a large portfolio of titles through acquisitions, a trend that is almost certain to continue with this latest massive round.

The funding also looks likely to strengthen the company’s ties to Sony, as well. Here’s Sony Group Corporation CEO Kenichiro Yoshida, also quoted in the press release:

Epic continues to deliver revolutionary experiences through their array of cutting edge technologies that support creators in gaming and across the digital entertainment industry. We are excited to strengthen our collaboration to bring new entertainment experiences to people around the world. I strongly believe that this aligns with our purpose to fill the world with emotion, through the power of creativity and technology.

Prior to this round, the company had raised $3.4 billion, including a a $1.78 billion round last August.

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Twitch expands its rules against hate and abuse to include behavior off the platform

Twitch will start holding its streamers to a higher standard. The company just expanded its hate and harassment policy, specifying more kinds of bad behavior that break its rules and could result in a ban from the streaming service.

The news comes as Twitch continues to grapple with reports of abusive behavior and sexual harassment, both on the platform and within the company itself. In December, Twitch released an updated set of rules designed to take harassment and abuse more seriously, admitting that women, people of color and the LGBTQ+ community were impacted by a “disproportionate” amount of that toxic behavior on the platform.

Twitch’s policies now include serious offenses that could pose a safety threat, even when they happen entirely away from the streaming service. Those threats include violent extremism, terrorism, threats of mass violence, sexual assault and ties to known hate groups.

The company will also continue to evaluate off-platform behavior in cases that happen on Twitch, like an on-stream situation that leads to harassment on Twitter or Facebook.

“While this policy is new, we have taken action historically against serious, clear misconduct that took place off service, but until now, we didn’t have an approach that scaled,” the company wrote in a blog post, adding that investigating off-platform behavior requires additional resources to address the complexity inherent in those cases.

To handle reports for its broadened rules, Twitch created a dedicated email address (OSIT@twitch.tv) to handle reports about off-service behavior. The company says it has partnered with a third-party investigative law firm to vet the reports it receives.

Twitch cites its actions against former President Donald Trump as the most high-profile instance of off-platform behavior resulting in enforcement. The company disabled Trump’s account following the attack on the U.S. Capitol and later suspended him indefinitely, citing fears that he could use the service to incite violence.

It’s hard to have a higher profile than the president, but Trump isn’t the only big time banned Twitch user. Last June, Twitch kicked one of its biggest streamers off of the platform without providing an explanation for the decision.

Going on a year later, no one seems to know why Dr. Disrespect got the boot from Twitch, though the company’s insistence that it only acts in cases with a “preponderance of evidence” suggests his violations were serious and well corroborated.

 

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Fortnite users can now livestream gameplay to Houseparty’s social video app

Houseparty, the social video app acquired by Fortnite maker Epic Games in 2019, has just announced a major new step in terms of integrating these two properties: the company says it will now allow gamers to livestream their Fortnite gameplay directly into Houseparty. The feature works to allow users to share their gameplay with up to nine other friends in a Houseparty room.

The addition follows Houseparty’s launch of a “Fortnite Mode” last November, which added a video chat feature to Fortnite where players could see live feeds from their friends while gaming, powered by Houseparty. Today’s launch is something of a reverse of that, as it lets players stream the game to friends, which is viewable inside Houseparty itself. This allows the users’ friends — including those who may not be Fortnite gamers themselves — to watch and and interact with the player.

To use the new feature, the Fortnite player will need to have enabled Fortnite Mode Streaming and be connected to Houseparty. When they begin to stream their gameplay, their friends on Houseparty will be notified that their game feeds are now available to watch.

The Fortnite player can then see who is watching their stream via a graphic overlaid on their screen which shows their “watcher count.” This is represented by a little eye icon in the middle-left of the screen for the gamer, while Houseparty users will see the eye icon in the top-left of their video screen.

During the livestream, the player and their friends can watch and chat, as usual.

If the Fortnite player doesn’t want to livestream their gameplay, they can change this at any time from a setting inside Fortnite without losing their ability to use the video chat feature. Parents and guardians can also turn on and off Fortnite Mode and other privacy features inside Fortnite’s settings. The company notes that personal info will be blocked from streams, including payments information. However, The Lobby, your menus and your gameplay can all be streamed when Fortnite Mode is enabled.

Houseparty first gained traction as a way for friends to virtually “hang out” online through video chat, but ultimately sold to Epic Games shortly after the gaming giant raised a massive $1.25 billion round. So far, Houseparty hasn’t given up on its other social features, even as it has become more closely integrated with Fortnite. The launch of the new feature creates potential for Houseparty to capture some of the more casual livestreaming that today takes place on other platforms, like Twitch, Facebook or YouTube, where users aren’t necessarily streaming for fans, but rather for friends.

The company says the new feature won’t offer a record function for later exporting these livestreams for publishing elsewhere, but notes that Fortnite already allows the ability to save replays.

At launch, Fortnite gameplay integration with Houseparty is available across PC and PlayStation only (PS4 and PS5). Epic Games didn’t say if or when other platforms would be supported. Houseparty users on iOS, Android and Chrome will be able to watch the livestreams.

The previously launched video chat feature in Fortnite was also supported on PCs and PlayStations.

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Daily Crunch: Apple Arcade expands with classic games

Apple adds classic titles to Apple Arcade, Microsoft experiences an outage and Coinbase is going public. This is your Daily Crunch for April 2, 2021.

The big story: Apple Arcade expands with classic games

Until now, Apple’s game subscription service was limited to exclusive new titles, but today it’s introducing two new categories: App Store Greats (popular iPhone games like Monument Valley+, Fruit Ninja Classic+, Cut the Rope Remastered and Badland+) and Timeless Classics (board games and puzzle games, such as Backgammon+ and Chess Play and Learn+).

This is a major expansion to the Apple Arcade back catalog, but it’s not simply a matter of putting previously free games behind a paywall. The Arcade versions of these titles will be ad-free and without in-app purchases — you’re never paying anything beyond the $4.99 monthly subscription fee. Also, some of these games had become unavailable in their original forms due to iOS and hardware updates.

The tech giants

Microsoft outage knocks sites and services offline — Microsoft stumbled back online Thursday after an hours-long outage in the middle of the U.S. west coast working afternoon.

Startups, funding and venture capital

Coinbase to direct list on April 14th, provide financial update on April 6th — The company will trade under the ticker symbol “COIN.”

Uruguayan payments startup dLocal quadruples valuation to $5B with $150M raise — This means that the five-year-old Uruguayan company has effectively quadrupled its valuation in a matter of months.

Backflip offers an easier way to turn used electronics into cold, hard cash — The company offers customers cash on delivery for their used electronics, which could be anything from iPhones to Game Boys.

Advice and analysis from Extra Crunch

How is edtech spending its extra capital? — Edtech M&A activity has continued to swell.

Tech in Mexico: A confluence of Latin America, the US and Asia — LatAm entrepreneurs seem to be looking to Asian tech giants for product inspiration and growth strategies.

RPA market surges as investors, vendors capitalize on pandemic-driven tech shift — Robotic process automation came to the fore during the pandemic as companies took steps to digitally transform.

(Extra Crunch is our membership program, which helps founders and startup teams get ahead. You can sign up here.)

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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Apple expands Apple Arcade with classic App Store games

Apple has announced an expansion for its subscription gaming service Apple Arcade. In addition to exclusive game releases, the company is adding two new categories — Timeless Classics and App Store Greats.

In the “App Store Greats” category, you can find some well-known iPhone games that have been released over the past decade, such as Threes+, Mini Metro+, Monument Valley+, Fruit Ninja Classic+, Cut the Rope Remastered and Badland+.

This is an interesting move, as Apple has focused on exclusive titles so far. Arguably, some Apple Arcade games are sequels of popular App Store games — I’d put Mini Motorways and Rayman Mini in this category, for instance.

But Apple is changing its stance and essentially buying a back catalog of App Store games. Some of them are still available on the App Store, while others have become incompatible with modern iOS versions due to framework and hardware updates. 64-bit processors have rendered many games incompatible for instance.

As always, Apple isn’t just putting free games behind a paywall. These are brand new downloads on the App Store. You get the full game without any ad or in-app purchase.

In addition to old school App Store games, Apple is also adding “Timeless Classics” games. It’s a selection of board games and classic puzzle games that are included in your subscription. Games include Backgammon+, Chess Play & Learn+, Good Sudoku+, Tiny Crossword+, etc.

Those games should definitely help when it comes to reducing churn. Some people just like playing chess over and over again. They might start subscribing to play some chess and pay an Apple Arcade subscription just to keep using the same app.

Overall, Apple is dropping 32 games today, and Apple Arcade has more than 180 games in its catalog. Apple originally launched the service in September 2019. You can download Apple Arcade games for $4.99 per month and there’s no additional in-app purchases. Games are available on the iPhone, the iPad, the Apple TV and macOS. Up to six family members can play with a single Apple Arcade subscription and you can also access Apple Arcade with an Apple One subscription.

Apple has been betting heavily on subscription services, such as Apple Music, Apple TV+, Apple Fitness+ and Apple News+. While some of those services have been very successful, such as Apple Music, the company is still adding more and more content to other services to prove that you should subscribe over the long haul. And today’s Apple Arcade update should definitely help for its game subscription service.

Image Credits: Apple

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Bilibili ups the ante in games with $123 million investment in TapTap

Competition in China’s gaming industry is getting stiffer in recent times as tech giants sniff out potential buyouts and investments to beef up their gaming alliance, whether it pertains to content or distribution.

Bilibili, the go-to video streaming platform for young Chinese, is the latest to make a major gaming deal. It has agreed to invest HK$960 million (about $123 million) into X.D. Network, which runs the popular game distribution platform TapTap in China, the company announced on Thursday.

Dual-listed in Hong Kong and New York, Bilibili will purchase 22,660,000 shares of X.D.’s common stock at HK$42.38 apiece, which will grant it a 4.72% stake.

The partners will initiate a series of “deep collaborations” around X.D.’s own games and TapTap, without offering more detail.

Though known for its trove of video content produced by amateur and professional creators, Bilibili derives a big chunk of its income from mobile games, which accounted for 40% of its revenues in 2020. The ratio had declined from 71% and 53% in 2018 and 2019, a sign that it’s trying to diversify revenue streams beyond distributing games.

Tencent has similarly leaned on games to drive revenues for years. The WeChat operator dominates China’s gaming market through original titles and a sprawling investment portfolio whose content it helps operate and promote.

X.D. makes games, too, but in recent years it has also emerged as a rebel against traditional game distributors, which are Android app stores operated by smartphone makers. The vision is to skip the high commission fees charged by the likes of Huawei and Xiaomi and monetize through ads. X.D.’s proposition has helped it attract a swathe of gaming companies to be its investors, including fast-growing studios Lilith Games and miHoYo, Alibaba, as well as ByteDance, which built up a 3,000-people strong gaming team within six years.

Bilibili’s investment further strengthens X.D.’s matrix of top-tier gaming investors. Tencent is conspicuously absent, but it’s no secret that ByteDance is its new nemesis after Alibaba. The TikTok parent recently outbid Tencent to acquire Moonton, a gaming studio that has gained ground in Southeast Asia, according to Reuters. Douyin, the Chinese version of TikTok, is also vying for user attention away from content published on WeChat.

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Lowkey raises $7 million from a16z to help game streamers capitalize on short-form video

While the growth of game-streaming audiences have continued on desktop platforms, the streaming space has felt surprisingly stagnant at times, particularly due to the missing mobile element and a lack of startup competitors.

Lowkey, a gaming startup that builds software for game streamers, is aiming to build out opportunities in bit-sized clips on mobile. The startup wants to be a hub for both creating and viewing short gaming clips but also sees a big opportunity in helping streamers cut down their existing content for distribution on platforms like Instagram and TikTok where short-form gaming content sees a good deal of engagement.

The startup announced today that they’ve closed a $7 million Series A led by Andreessen Horowitz with participation from a host of angel investors including Figma’s Dylan Field, Loom’s Joe Thomas and Plaid’s Zach Perret and William Hockey.

We last covered Lowkey in early 2020 when the company was looking to build out a games tournament platform for adults. At the time, the company had already pivoted after going through YC as Camelot, which allowed audiences on Twitch and YouTube to pay creators to take on challenges. This latest shift brings Lowkey back to the streaming world but more focused on becoming a tool for streamers and a mobile hub for viewers.

Twitch and YouTube Gaming have proven to be pretty uninterested in short-form content, favoring the opportunities of long-form streams that allow creators to press broadcast and upload lengthy streams. Lowkey users can easily upload footage captured from Lowkey’s desktop app or directly import a linked stream. This allows content creators to upload and comment on their own footage or remix and respond to another streamer’s content.

One of the challenges for streamers has been adapting widescreen content for a vertical video form factor, but CEO Jesse Zhang says that it’s not really a problem with most modern games. “Games inherently want to focus you attention on the center of the screen,” Zhang tells TechCrunch. “So, almost all clips extend really cleanly to like a mobile format, which is what we’ve done.”

Lowkey’s desktop app is available on Windows and their new mobile app is now live for iOS.

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