Sebastian Sinclair

<div id="highlights-block_62fe0131dec0c" class="highlights">
        <ul>
                <li>A mocked Facebook post features Zuckerberg’s avatar standing in front of miniature models of the Eiffel Tower and the Tibidabo Cathedra</li>
                <li>Meta’s metaverse division, Reality Labs, is losing billions of dollars a year</li>
            </ul>
    
</div>



<p>Meta appears lost in its vision of what 3D virtual worlds should look like in 2022, according to some. The company&#8217;s release of its &#8220;Horizon Worlds&#8221; in Spain and France this week has been mocked by hundreds online, following CEO Mark Zuckerberg’s announcement post on <a href="https://www.facebook.com/photo/?fbid=10114625396809351&amp;set=a.612287952871" target="_blank" rel="noreferrer noopener">Facebook</a>.</p>



<p>The post features Zuckerberg’s avatar standing in front of miniature models of the Eiffel Tower and the Tibidabo Cathedral on a bed of grass. The problem? The quality of the graphics appears to be rendered in the previous century.</p>



<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"><div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="550" data-dnt="true"><p lang="en" dir="ltr">Mark Zuckerberg’s Metaverse looks worse than Quake did in 1996. <a href="https://t.co/kjs80Yn6Px">pic.twitter.com/kjs80Yn6Px</a></p>&mdash; Secretary of State for Socially Uncaring Health (@HUncaring) <a href="https://twitter.com/HUncaring/status/1559836674171043840?ref_src=twsrc%5Etfw">August 17, 2022</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
</div></figure>



<p>Formerly known as Facebook Horizon, Horizon Worlds is a virtual reality online metaverse game designed for “everybody,” despite being limited to US and Canadian persons over the age of 18.&nbsp;</p>



<p>Its release in two European countries on Monday follows years of development and over $10 billion dollars already spent to get the metaverse title to its current state. Meta announced its game towards the end of September 2019, two years before the company changed its name from Facebook.</p>



<p>Zuckerberg has been mocked online before for his company’s pursuits of virtual worlds. Late last year, 3-D animation studio Surreal Entertainment spun up a viral <a href="https://www.youtube.com/watch?v=Ibm3WhfLk08&amp;t=60s&amp;ab_channel=surrealentertainment" target="_blank" rel="noreferrer noopener">parody video</a>, based loosely on a demo announcement from Meta.</p>



<h3>Reality hitting Reality Labs</h3>



<p>Meta is determined to see its metaverse bet through, despite burning substantial cash reserves in the process. Late last month, the company reported quarterly losses in the billions over slumping sales stemming from its metaverse unit, Reality Labs.</p>



<p>Reality cost Meta more than <a href="https://cms.blockworks.co/meta-metaverse-unit-has-lost-5-7b-this-year/" target="_blank" rel="noreferrer noopener">$5 billion in missed sales</a> for the second quarter of this year, adding more than $10 billion in losses to its previous yearly earnings. Its metaverse arm has now racked up more than $16 billion in losses over the past 18 months.</p>



<p>Meta’s metaverse play could prove to be a risky bet in an already crowded games market dominated by the likes of Activision Blizzard and Riot Games.&nbsp;</p>



<p>While those studios have yet to formally announce a title related to the metaverse, questions remain over how Meta intends to steal market share or attract gamers away from the titles designed by the incumbent leaders.</p>



<p>Gamers, already exhausted by the concept of <a href="https://www.videogameschronicle.com/news/ubisoft-nft-quartz-youtube-dislikes/" target="_blank" rel="noreferrer noopener">non-fungible tokens</a> and metaverse concepts, <a href="https://www.thegamer.com/facebooks-horizon-worlds-broken-metaverse-unimaginative-games/" target="_blank" rel="noreferrer noopener">could hardly be expected</a> to engage in a virtual world that sit on par with Runescape-level graphics, critics say.</p>



<p>And while blocky world-building game Minecraft is much beloved, Horizon Worlds is yet to offer up a substantial level of user engagement and functionality to compete.</p>



<p>Still, Meta is defiantly plowing ahead.&nbsp;</p>



<p>According to research conducted by crypto asset manager <a href="https://grayscale.com/wp-content/uploads/2021/11/Grayscale_Metaverse_Report_Nov2021.pdf" target="_blank" rel="noreferrer noopener">Grayscale</a>, the metaverse is tipped to be a trillion-dollar yearly revenue opportunity across advertising, social commerce, digital events, hardware and creator monetization.</p>



<p>Epic Games, the company behind one of the world’s most popular games Fortnite, raised an eye-watering $2 billion dollars in April in a bid to accelerate its metaverse ambitions.&nbsp;</p>



<p>Despite substantial funding, questions center on how developers will best attempt to monetize efforts in a world seemingly designed for decentralization and individual ownership of digital assets.</p>



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Meta’s Metaverse Play Ridiculed Online

Ornella Hernandez

<div id="highlights-block_629e677028fba" class="highlights">
        <ul>
                <li>Binance and The Weeknd collab on the first crypto-powered world tour</li>
                <li>Miami Fashion Weeks goes virtual in Decentraland</li>
            </ul>
    
</div>



<h3><strong>Gala Games&#8217; Grit is bringing NFTs to the Epic Games Store</strong></h3>



<p>Epic Games, the video game publisher behind Fortnite, <a href="https://venturebeat.com/2022/06/06/gala-games-blockchain-game-grit-will-debut-on-the-epic-games-store/" target="_blank" rel="noreferrer noopener">intends</a> to list Web3 gaming company Gala Games’ wild west shooter GRIT as the first NFT-based game on the Epic Games Store.&nbsp;</p>



<p>A free-to-play online multiplayer game for Windows PC players, GRIT is set to launch later this year on Epic Games&#8217; own Unreal Engine. It will also feature user-owned NFT (non-fungible token) assets that can be bought and sold within the game.</p>



<p>Gala Games recently committed <a href="https://cms.blockworks.co/gala-games-to-plow-5b-into-nft-expansion-efforts-in-year-ahead/" target="_blank" rel="noreferrer noopener">$5 billion</a> to expand its NFT offerings between gaming, music, movies and theme park NFTs. Among them: the Gala Music platform and the launch of the NFT esport platform Spider Tanks.</p>



<p>Monday marked the beginning of the three-day Galaverse event in Malta, during which Gala plans to put the “The Gunslinger Box” for sale and unlock one of 10,000 GRIT avatars.&nbsp;</p>



<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"><div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="550" data-dnt="true"><p lang="en" dir="ltr">It’s official!<br><br>GRIT will be the first Gala game on the <a href="https://twitter.com/EpicGames?ref_src=twsrc%5Etfw">@EpicGames</a> store 🔥<a href="https://twitter.com/hashtag/IntoTheGalaverse?src=hash&amp;ref_src=twsrc%5Etfw">#IntoTheGalaverse</a> <a href="https://twitter.com/hashtag/Galaverse?src=hash&amp;ref_src=twsrc%5Etfw">#Galaverse</a> <a href="https://t.co/yR8YtgemMp">pic.twitter.com/yR8YtgemMp</a></p>&mdash; Gala Games (@GoGalaGames) <a href="https://twitter.com/GoGalaGames/status/1533783142364073986?ref_src=twsrc%5Etfw">June 6, 2022</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
</div></figure>



<h3><strong>Miami Fashion Week</strong></h3>



<p>The Decentraland metaverse hosted virtual events throughout Miami Fashion Week during the past few days. In conjunction with the physical shows that took place from May 31 to June 5, fashion shows with avatar models took over the Luxury Fashion District in Decentraland.&nbsp;&nbsp;</p>



<p>Attendees could buy virtual goods on the marketplace, while designers, models, stylists and photographers had access to a new NFT members fashion club, L&#8217;Atelier. Members could register for a whitelisting spot for “The Key” NFT, redeemable for physical and digital wearables.</p>



<p>Miami Fashion Week is the second event hosted on the Fashion Estate this year after Metaverse Fashion Week in March.</p>



<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"><div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="550" data-dnt="true"><p lang="en" dir="ltr">&quot;We&#39;re all live in the Metaverse today.&quot;<a href="https://twitter.com/MiamiFashionWk?ref_src=twsrc%5Etfw">@MiamiFashionWk</a> pushing the boundaries of fashion from the physical to the digital, with the support of <a href="https://twitter.com/metav3rsegroup?ref_src=twsrc%5Etfw">@metav3rsegroup</a>, <a href="https://twitter.com/meta_archs?ref_src=twsrc%5Etfw">@meta_archs</a> and <a href="https://twitter.com/decentraland?ref_src=twsrc%5Etfw">@decentraland</a>.🔥 <a href="https://t.co/uTBZ9rW6I5">pic.twitter.com/uTBZ9rW6I5</a></p>&mdash; Miami Fashion Week (@MiamiFashionWk) <a href="https://twitter.com/MiamiFashionWk/status/1533499995760087040?ref_src=twsrc%5Etfw">June 5, 2022</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
</div></figure>



<h3><strong>The Weeknd x Binance to go on tour</strong></h3>



<p>Last week, Binance <a href="https://www.binance.com/en/support/announcement/9e921334f2db4b23b75c3581d37efdad" target="_blank" rel="noreferrer noopener">announced</a> it will sponsor its first global music tour: The Weeknd&#8217;s &#8220;After Hours Til Dawn&#8221; tour that begins in July. The crypto exchange intends to integrate Web3 technology “for fans to experience crypto within a creative avenue while supporting a good cause,” according to The Weeknd.</p>



<p>That good cause is the XO Humanitarian Fund, administered by World Food Program (WFP) USA and founded by the artist, who is also a United Nations WFP global goodwill ambassador. At the start of the tour, Binance will donate $2 million to the fund.</p>



<p>Five percent of sales of a NFT collection designed in collaboration with incubator HXOUSE will be donated to the fund as well. Concertgoers can also gain access to commemorative NFTs.</p>



<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"><div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="550" data-dnt="true"><p lang="en" dir="ltr">Excited to partner with <a href="https://twitter.com/binance?ref_src=twsrc%5Etfw">@Binance</a> and <a href="https://twitter.com/BinanceUS?ref_src=twsrc%5Etfw">@BinanceUS</a> for my After Hours Til Dawn tour !!!<br><br>We&#39;ll use innovative Web 3 tech to connect with you in NEW creative ways and collaborate on charitable efforts to provide food to those in need. <a href="https://t.co/x7zH9rg0Wq">pic.twitter.com/x7zH9rg0Wq</a></p>&mdash; The Weeknd (@theweeknd) <a href="https://twitter.com/theweeknd/status/1532384133359763459?ref_src=twsrc%5Etfw">June 2, 2022</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
</div></figure>



<h3><strong>Top NFT drop announcements:</strong></h3>



<ol><li>Gap <a href="https://www.gapinc.com/en-us/articles/2022/06/gap-expands-nfts-with-demit-omphroy-and-dogami" target="_blank" rel="noreferrer noopener">collaborated</a> with the petaverse game DOGAMÍ for a July launch of digital Gap logo hoodies specifically designed for DOGAMÍ virtual pets. The Gap Threads marketplace and DOGAMÍ are both built on Tezos.</li><li>The intellectual property of Warner Bros.’ Looney Tunes characters will soon be on sale on the Nifty NFT platform. The collection, “<a href="https://www.hollywoodreporter.com/business/digital/looney-tunes-nft-tweety-warner-bros-1235156577/" target="_blank" rel="noreferrer noopener">Looney Tunes: What’s Up Block</a>?,” will start with Tweety Bird, who will turn 80 this year, and later feature Bugs Bunny and Marvin the Martian. </li><li>Mariah Carey <a href="https://www.rollingstone.com/music/music-news/mariah-carey-nft-songwriters-hall-of-fame-1361982/" target="_blank" rel="noreferrer noopener">launched</a> her first NFT on Geojam and designed it as a boarding pass. The winning bidder of the NFT will fly with Carey to New York and attend the ceremony with the artist, where she will be inducted into the Songwriters Hall of Fame.</li></ol>



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<hr class="wp-block-separator">


Web3 Watch: Epic Games Store Adds First NFT Game, Binance Sponsors The Weeknd Tour

<div id="highlights-block_6254c9ca036e5" class="highlights">
        <ul>
                <li>Epic Games has secured a whopping $2 billion in additional funding from Sony and KIRKBI to further its metaverse ambitions</li>
                <li>While some see the Fortnite developer&#8217;s position to port their games to Web3 as a challenge, others view the move as a positive</li>
            </ul>
    
</div>



<p>The developer of one of the world&#8217;s most popular games, Fortnite, has scooped up $2 billion in additional funding in a bid to accelerate its metaverse ambitions.</p>



<p>Epic Games said Monday it had received $1 billion each from existing investors Sony Group Corporation and KIRKBI, the family-owned investment company behind The LEGO Group.</p>



<p>Following regulatory approval of the deal, Epic&#8217;s post-money equity valuation stands at $31.5 billion.</p>



<p>The fresh funding will be used to build out Epic&#8217;s vision for the metaverse and support its continued growth, according to a <a href="https://www.epicgames.com/site/en-US/news/sony-and-kirkbi-invest-in-epic-games-to-build-the-future-of-digital-entertainment" target="_blank" rel="noreferrer noopener">statement</a>. Epic said it is attempting to create novel &#8220;social entertainment&#8221; by exploring the connection between the digital and physical worlds.</p>



<p>“As a creative entertainment company, we are thrilled to invest in Epic to deepen our relationship in the metaverse field, a space where creators and users share their time,” Kenichiro Yoshida, president and CEO of Sony Group Corporation, said.</p>



<p>Sony&#8217;s participation in the round extends upon its <a href="https://www.roadtovr.com/sony-epic-games-investment-implications/" target="_blank" rel="noreferrer noopener">$250 million cash infusion</a> for Epic in 2020 and a further <a href="https://www.roadtovr.com/epic-games-unreal-engine-1b-investment/" target="_blank" rel="noreferrer noopener">$200 million</a> a year later. Epic&#8217;s accrued capital is slated for the developer&#8217;s project to build “real-time 3D social experiences leading to a convergence of gaming, film, and music,” its CEO Tim Sweeney reportedly said at the time.</p>



<p>While the funds have been flowing, questions are mounting over how the developer will best attempt to monetize their efforts in a world seemingly designed for decentralization and individual ownership of digital assets.</p>



<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"><div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="550" data-dnt="true"><p lang="en" dir="ltr">This does not mean LEGO in Fortnite, but Epic Games is working with them to create a &quot;Digital Experience&quot; and with references of the metaverse, it doesn&#39;t rule out anything to do with Fortnite 👀</p>&mdash; T5G (@Top5Gamingx) <a href="https://twitter.com/Top5Gamingx/status/1512038899304087555?ref_src=twsrc%5Etfw">April 7, 2022</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
</div></figure>



<p>&#8220;What they&#8217;ve been building with Fortnite, is what they&#8217;re kind of calling a metaverse, but I&#8217;d say it&#8217;s a closed ecosystem, where they rely on external investments and deals with large intellectual property rights, instead of a more open web3 metaverse,&#8221; Lost Relics and Codebit Labs Director Cliff Cawley said.</p>



<blockquote class="wp-block-quote"><p><strong>&#8220;It seems that some companies are merely using the term metaverse as another marketing term to ensure their balance sheets remain profitable for themselves,&#8221; Cawley added</strong>.</p></blockquote>



<p>Fortnite is a hugely popular free-to-play battle royal game where 100 players are dropped on an island and duke it out by crafting, shooting and looting their way to a top spot. </p>



<p>While the model is free-to-play, Epic generates substantial profit through microtransactions via its in-game store. Players can purchase skins, emotes and sprays in exchange for the company&#8217;s in-game currency called V-Bucks, which are purchased using fiat.</p>



<p>Epic uses V-Bucks to turn a large portion of its profit. In 2018, the company generated $5.5 billion in gross revenue from its Fortnite title and $3.7 billion the following year, according to <a href="https://s3.documentcloud.org/documents/20696836/epic-apple-trial-epic-games-exhibit.pdf" target="_blank" rel="noreferrer noopener">leaked documents</a> from last year&#8217;s Apple v. Epic Games trial.</p>



<p>&#8220;It would be next to impossible for Epic to smoothly transition Fortnite into a Web3 Game,&#8221; Simon Kertonegoro, CEO and founder of MyMetaverse, said. &#8220;Its game mechanics and monetization are already set up to run in a Web2 way.&#8221;</p>



<p>Web3 refers to the idea of a decentralized internet where ownership of data is possessed locally by the individual. Metaverses, meanwhile, refer to the experience individuals will have based on an intersection of technologies including virtual reality, blockchain and Web3 infrastructure. </p>



<p>Both concepts are in their early infancy, but development and major funding have continued to push the bounds and explore new revenue streams that share collectively in the success of a particular title.</p>



<p>While revenue models will need to be hashed out, some blockchain gaming developers believe Epic&#8217;s foray into the metaverse will help position the budding industry front and center.</p>



<p>&#8220;We should definitely anticipate more innovation happening in the space as new economic models are introduced,&#8221; Brian Akaka, chief marketing officer at Laguna Games, the developer behind the upcoming non-fungible token (NFT) title <a href="https://cms.blockworks.co/crypto-unicorns-nets-26m-in-token-sales-led-by-tcg-backed-vc/" target="_blank" rel="noreferrer noopener">Crypto Unicorns</a>, told Blockworks.</p>



<blockquote class="wp-block-quote"><p><strong>&#8220;It is important for game developers to incorporate new mechanics as a natural part of gameplay, rather than treating it as an add-on.&#8221;</strong></p></blockquote>



<p>Kertonegoro believes Epic is poised to take advantage of an entirely new title centred around the concept of monetizing in-game assets that give players the option to share in the profits of Epic&#8217;s sales.</p>



<p>&#8220;I believe Tim Sweeney and Epic Games, in general, are smart enough to know that, in the end, the solution that&#8217;s best for players will always win,&#8221; he said.</p>



<p>Epic continues to distribute only a single class of common stock outstanding and remains controlled by its CEO and founder.</p>



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