GM/GN to everyone except the SEC and GGs to all the XRP holders out there🫡 

With altcoins ripping after the Ripple decision, it’s hard not to feel bullish right now. Eight months of down and sideways after the FTX and we’re finally getting an idea of what things might look like after crypto winter/builder market/whatever you want to call it.

Enough about tokens though, here’s what we’ll be looking at from this week:

• Sega FUD

• Change Log

• Google Play Opens Its Doors To Web3

• STEPN and Apple Win

• Other News

Sega FUD

Sega Co-COO Shuji Utsumi called P2E gaming boring in an interview with Bloomberg, and now people are thinking Sega is leaving the Web3 space. While it’s pretty clear where they stand on the current state of P2E, the narrative around Sega’s departure is mostly FUD.

First, Sega’s current IP deals and gaming initiatives aren’t going anywhere. The Double Jump Tokyo partnership with Sega to build a Three Kingdom-based trading card game is still moving forward. Utsumi additionally shared that he wouldn’t count out a blockchain integration for their 2026 “super game” initiative.

IP is core to Sega’s business model, and it’s clear that they don’t want to jeopardize their portfolio. When they received backlash for announcing their first NFT projects, Sega’s parent company openly highlighted a cautious approach to NFTs in a management Q&A. Without a console since the Dreamcast was discontinued in 2021 and a steadily declining arcade market, Sega needs to be protective of how they use and license their IP.

Secondly, Utsumi’s comments appear to be geared toward the current state of P2E but also lean toward Sega’s ability to make a high-value P2E title. Sega currently gets about 30% of its total revenue internationally and 70% in Japan. Most of the international revenue comes from full titles. When looking at F2P and mobile games, Sega only captures 6% of its revenue abroad.

F2P and mobile gaming that can penetrate global markets is a challenge for Sega, and the current P2E landscape shares a lot of the same qualities. In a way, Sega may not see P2E as mature enough to license and aren’t in a position to create a successful game that can reach key crypto demographics. That being said, Sega’s $775 million acquisition of Angry Birds creator Rovio Entertainment in April opens the door for increased international revenue and talent in the F2P and mobile space.

Change Log

• Wolf Game launched two new game betas: Tug of WOOL and Wolf Wits.

• Cool Cats Group is partnering with nWay, iCandy, and Sync Studios to launch three games and will appear at Comic Con and Macy’s Thanksgiving Day parade.

• Gods Unchained launched a new game mode: Chaos Constructed.

• The Machines Arena added in-game rewards with plans to make rewards mintable as NFTs.

• Axie Infinity launched Axie Hangouts, a digital meetup area for users’ favorite Axies. User can now also display their five favorite digital collectibles on their profile.

• Space Nation Online announced its alpha test starting August 29.

Google Play Opens Its Doors To Web3

Google Play has just announced an update to the store’s policy to allow new ways to transact blockchain-based digital content within apps and games. This move is aimed at fostering innovation while ensuring user protection. Developers must complete a declaration for apps that enable users to transact blockchain-based digital content. Additional requirements apply for NFT gamification to promote user transparency and safety.

1. Cryptocurrency Exchanges and Software Wallets: The purchase, holding, or exchange of cryptocurrencies should be conducted through certified services in regulated jurisdictions. Developers must comply with applicable regulations for any region or country their app targets.

2. Cryptomining: Apps that mine cryptocurrency on devices are not allowed. However, apps that remotely manage the mining of cryptocurrency are permitted.

3. Transparency Requirements for Distributing Tokenized Digital Assets: If an app sells or enables users to earn Tokenized Digital Assets, this must be declared via the Financial Features declaration form on the App Content page in Play Console. The app cannot promote or glamorize any potential earnings from playing or trading activities.

4. Additional Requirements for NFT Gamification: Gambling apps that integrate tokenized digital assets, such as NFTs, should complete the application process. NFTs bought by users should be consumed or used in the game to enhance a user’s experience or aid users in advancing the game. NFTs must not be used to wager or stake in exchange for the opportunity to win prizes of real-world monetary value (including other NFTs).

Violations of these rules include apps that sell bundles of NFTs without disclosing the specific contents and values of the NFTs, and pay-to-play social casino games, such as slot machines, that reward NFTs.

Google play store is the largest app store for apps and downloads, with over 110 billion apps and games downloaded over the past year. With over $42 billion spent on games in 2022 alone, the latest policy change from Google could be a potential catalyst for innovation and adoption of web3 games.

STEPN and Apple Win

Find Satoshi Lab, the creator of the web3 lifestyle app Stepn, is launching a three-month competition to promote its upcoming video game, Gas Hero. Participants will be rewarded with GMT tokens (totaling over $400,000) for creating and designing avatars for the game. The competition is part of a strategy to build a community around the game, which has been a challenge for many crypto-native games.

Stepn has made significant progress with Apple, securing authorization to allow iPhone users to trade in-game NFTs directly within the app, and integrating Apple Pay, overcoming Apple’s traditionally restrictive policies towards crypto-based apps. Although a specific case with the App Store, with the recent positive refresh from Google Play Store’s policies, Apple will need to rethink its strategy to ensure that projects and developers don’t jump ship.

Other News

• Binance Labs invested $15 million in the Web3 gaming platform Xterio.

• Lightspeed Ventures and Krafton co-led a $31.3 million funding round for the RPG-focused game studio Gardens.

• Dapper Labs CEO Gharegozlou confirmed that the team laid off 51 full-time employees and C1 contractors.

• Eyeball Games partnered with Immutable to launch the web3 mobile game, Eyeball Pool.

• VALORANT launched in China.

• AI fantasy sports platform Swim Wim Sports partnered with Immutable to build on Immutable zkEVM.

• Mighty Gear Games transitioned its upcoming game Mighty Action Heroes from Polygon to Arbitrum.