Commentary

Gaming, entertainment embrace blockchain, metaverse, NFTs

The hype continues surrounding the utilization of blockchain and NFTs in the metaverse, e-sports and entertainment venues.

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July 4, 2022 by Kevin Williams

Cryptocurrency and blockchain technology continue to find application in many industries, and the gaming and entertainment industry is certainly no exception. Gaming and entertainment venues recognize the benefits of not only cryptocurrency payment, but new ways to reward customers with prizes and improve the guest experience.

Much of this investment is taking place on the nascent e-sport front, which heavily relies on digital wallets. The "metaverse," for its part, has an association with linking activities through streaming which easily includes e-sports.

Gaming steps forward

Community Gaming, a New York City based e-sports tournament platform, allows players to organize tournaments with easy wallet onboarding and smart contract powered payments.

In 2019, the company transitioned to a hybrid platform of in-person and online events using blockchain-based smart contracts to provide an all-encompassing competitive gaming experience from signup to instant payment.

The company, with some 100,000 registered users, recently raised some $16 million in a series A round of investment led by SoftBank. The company is looking to expand its blockchain-based subscription model which includes prize payments through this platform, and to expand into Latin America.

NFTs enter the mix

Other e-sports operations are attempting to incorporate not only cryptocurrency but non-fungible tokens, better known as NFTs. NFTs are cryptographic tokens that exist on a blockchain and can represent real-world items like artwork and real estate, according to Investopedia.

The Sega Corp. — which has abandoned entertainment facility operations but continues to have investments in some sites through IP and continues to develop amusement hardware — has been working on what it calls its "SuperGame" in collaboration with Microsoft which would involve multiple titles that would include NFTs.

The streaming capability of the new "SuperGame" will see e-sports and competitive tournament elements shared across all of the titles in development, hoping to establish a "metaverse" of its own for its IP.

More players come onboard

In a similar move, Bandai Namco Entertainment recently announced plans to spend $130 million on a "Gundam Metaverse," based around its flagship IP.

Epic Games and Lego, meanwhile, have raised some $2 billion in funding from Sony and the Lego family investment operation Kirkbi after partnering to develop a "family-friendly" metaverse for children.

Epic is known for its social environment generated around its popular "Fortnite" PvP game series, which has expanded to include a large community element including live performances, movie screenings and world building.

It is expected that the new developments between Lego and Epic will build on this and digital toy brands.

Avatars enter the mix

In other news on the metaverse investment front, avatar developer Genies recently secured a $150 million investment led by Silver Lake, with participation from Tamarack, Bond and NEA. Genies will use this investment to build its presence in the metaverse to guarantee its position in the avatar space.

Avatars, for their part, have become a much-discussed element of the growth of Web 3 conversations, with the virtual representation of the user in the virtual environment. The creation of digital goods, such as NFTs and celebrity endorsements creating their own avatars, is driving much of the interest.

Another metaverse-inspired investment saw Infinite Reality, a creative operation, sign an agreement to acquire ReKTGlobal, an e-sports company, in a stock purchase valued at $470 million. This will allow the combined group to merge with Universal Security Instruments — allowing the combined operation to go public.

At the same time, the operation has started the process to raise some $150 million through private investment in public equity. The combined operation is looking to develop content and tools to create entertainment, social media and educational properties, and will look to expand its own metaverse which will include e-sports support.

Look for the hype to continue surrounding the utilization of blockchain and NFTs in the metaverse, e-sports and entertainment venues.

(Editor's note: Extracts from this blog are from recent coverage in The Stinger Report, published by Spider Entertainment and its director, Kevin Williams, the leading interactive out-of-home entertainment news service covering the immersive frontier and beyond.)

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About Kevin Williams

Along with advisory positions with other entrants into the market he is founder and publisher of the Stinger Report, “a-must-read” e-zine for those working or investing in the amusement, attractions and entertainment industry. He is a prolific writer and provides regular news columns for main trade publications. He also travels the globe as a keynote speaker, moderator and panelist at numerous industry conferences and events. Author of “The Out-of-Home Immersive Entertainment Frontier: Expanding Interactive Boundaries in Leisure Facilities,” the only book on this aspect of the market, with the second edition scheduled for a 2023 release.

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