Autor Cointelegraph By Callan Quinn

Valve allows AI content on Steam

Game developers can use AI-generated content in games listed on Steam. But only if it isn’t generated using copyright-infringing content.

That’s the official line from Valve, the creators of game publishing platform Steam, which it made in response to a June Reddit post that’s been making the rounds about a developer who had his game rejected by Steam for using AI.

Developer Artoonu, who specializes in creating NSFW games (think furries and hentai), said the company asked him to “affirmatively confirm that you own the rights to all of the IP used in the data set that trained the AI to create the assets in your game” for it to be accepted, which is an impossible ask.

Valve, it seems, is worried about the legal implications of hosting AI-generated content. And perhaps they should be. Artists are furious about the fact that AI image generators are trained on their work. ChatGPT pulls massive amounts of data from the web, much of which is copyrighted. Recordings of voice artists from years ago have been dug up and are being used by companies to train AI voice models without their explicit consent.

Valve spokesperson Kaci Boyle told Gizmodo this week that the introduction of AI was making it harder to show that a developer has sufficient IP rights when they use AI to create assets, including images, text, and music.

“In particular, there is some legal uncertainty relating to data used to train AI models. It is the developer’s responsibility to make sure they have the appropriate rights to ship their game,” Boyle said.

Gaming on Macs to suck less

Is Apple’s reign as the worst platform for gaming coming to an end?

Amidst all the hype about their long-rumored VR/AR headset, slated for release in early 2024 (queueing outside the Apple Store starts in October), it’s not the only signal that Apple might finally be sorting out its subpar gaming offering. It’s also releasing software that will make it easier to play Windows games on Mac.

Gaming on a Mac really sucks. Lots of games – particularly indie and early release ones – are not compatible. Keyboard mapping can be funky. To this day I have been unable to attach special tackles to my fishing rod (no, that is not innuendo) on the Mac edition of Stardew Valley.

With VR games, it’s even worse. If you want to spend hours watching YouTube videos, you can get most VR headsets to somewhat work with a Mac. But right now the only one that is really officially compatible seems to be the HTC Vive.

Are headsets the future of surfing the web? (Apple)

The downside of an Apple-native product is it comes with an Apple price tag: a hefty $3,499. It’s hard to justify that much money for exploring the empty, laggy metaverse when you could spend a few months travelling and seeing some of the coolest places in the actual world for the same price.

The endless legal wrangling over in-game virtual assets

The Sandbox, Decentraland and Axie Infinity’s tokens – SAND, MANA and AXS, respectively – made cameo appearances in the U.S. Securities and Exchange Commission (SEC) complaint against crypto exchange Binance, which was filed on June 5.

The complaint against the crypto exchange contains 13 charges, including that Binance sold unregistered securities. The SEC counted SAND, MANA and AXS among such securities – meaning it considers them to be types of investments, not currencies.

Speaking at the Non Fungible Conference (NFC) in Lisbon, Portugal on June 7, The Sandbox COO Sebastien Borget said that his team were aware of the litigation but that they are not themselves subject to any.

“We do not necessarily agree with the characterization that’s been put in that litigation, including the qualification of SAND as a security there,” he said, adding that it would not change the company’s day-to-day business.

Since the announcement, eToro has said it will delist several tokens, including MANA, for US-based customers.

eToro has a framework in place which reviews the cryptoassets we offer in light of the rapidly evolving regulatory landscape. Due to recent developments, we will be making some changes to our crypto offering for US customers. (1/5)— eToro US (@eToroUS) June 12, 2023

Making in-game currencies securities is a new twist in the mess that is bridging the gap between virtual gaming currencies and real life money.

It’s not a new thing. The debate over the legal status of in-game currencies precedes even the invention of Bitcoin. Second Life got its first millionaire in 2006 and the question of who owes what to who has continued, exacerbated by the fact that many developers and creators already feel they pay large “taxes” to platforms.

Yet previous conversations have mostly been centered around making sure those that sell virtual assets or developer games on platforms are taxed correctly, not about investment and likely because Web2 virtual currencies act more like, well, currencies.

At last check, the US’s IRS doesn’t seem to be too concerned with virtual currencies if they don’t leave a game.

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Avalanche wants to help Web2 gaming leaders go Web3

The quest by blockchains to convert gaming companies to the dark side continues with Ava Labs’ launch of Arcad3, a program to help Web2 gaming giants “launch powerful blockchain deployments.”

Ava Labs, which has supported gaming companies in building out more than ten gaming subnets on Avalanche and over 100 Web3 games, will work with teams on game monetisation, marketing, user acquisition, and risk management.

Among the first companies taking part are Tokyo-based firms Gumi and GREE (not to be confused with the Chinese aircon giant, GREE Electrics), as well as Shrapnel, DeFi Kingdoms and Gunz Chain by Gunzilla.

The team behind Shrapnel is among those taking part in the program. (Shrapnel/Avalanche)

GREE’s Board of Director and SVP, Metaverse, Eiji Araki said that he believed the program would help the company stay ahead on Web3 gaming and develop relationships with the studios who are experimenting in and building the space. It’s currently working on its first Web3 game, Project INCURSION.

“I can’t share any details other than the project code yet, but it will be a breakthrough title that successfully combines our nearly 20 years of mobile game development knowledge with the new essence of Web3,” he added in a statement.

Grand Theft Auto VI crypto rumors

Rumors that the upcoming Grand Theft Auto VI (GTA 6) will incorporate cryptocurrency and non-fungible tokens (NFTs) have once again surfaced, sparking speculation among fans.

Posts shared on Twitter suggest that GTA 6 will be a play-to-earn game and that in-game items such as cars and weapons will be NFTs.

GTA creators Rockstar Games are yet to weigh in on whether there’s any truth to these claims, but there seems to be little solid evidence backing the rumors.

The company cracked down on the use of crypto in GTA in November last year and sent cease and desist letters to companies running public servers with blockchain integrations — a blow to several game makers that had built their games on the platform.

A lambo from GTA 5. (Steam/Rockstar Games)

Given that GTA 5, released in 2015, has sold over 180 million copies and generated a staggering $8 billion in revenue, it seems unlikely that Rockstar would drastically alter the successful formula of the franchise, the latest instalment of which is expected next year or in 2025.

Of course, there could be a crypto element but not necessarily the one crypto bros want. Game Rant suggests that it is more likely for Rockstar Games to use crypto as the butt of its in-game jokes.

Illuvium CEO Kieran Warwick has once again been in the thick of a controversy, this time taking aim at applicants seeking to join Illuvium DAO’s marketing sub-council.

Warwick, who is not coincidentally also the game studio’s chief marketing officer, took to Twitter on May 9 to say that the DAO faced a “significant challenge,” with the sub-DAO hopefuls vying for the gig as they “need to possess the requisite marketing experience.” This upset the hopefuls, given the backhander about their lack of experience.

Not one to let an opportunity go to waste, Warwick then issued a media release about the “controversy stirred by its CEO, Kieran Warwick.”

The marketing sub-council is one of four sub-councils within the Illuvium DAO focused on particular tasks related to developing Illuvium’s products and community. The others relate to community, game and strategy, with the idea being to draw on community expertise to develop the project.

Sub-council members are paid in Illuvium tokens.

I understand that my recent tweet has caused some concern, and I want to clarify my intentions behind proposing Gov v2. The primary goal was to attract exceptional talent to enhance our team, as we have numerous skilled community members from diverse fields. Unfortunately, when I…— Kieran.eth ♊️ (@KieranWarwick) May 10, 2023

The vote ultimately went ahead. The CEO and co-founder of game platform Arcade2Earn, Josh Poole, and former Love Island contestant and DJ Sam Withers joined Warwick on the sub-council — despite the media release stating Withers had withdrawn his nomination due to the criticism. Two pseudonymous members of the Illuvium DAO, Fight4ETH and Kingscoriox (they gave their first names as Kenneth and Jason, respectively), were also elected to the sub-council.

The new additions to decision-making on the marketing front may result in a change of strategy from garnering headlines from Warwick’s entertaining but controversial Twitter barneys.

In a discussion on Discord about his sub-council tweet, Warwick sensed an opportunity in the downvoting he was receiving, stating that it warranted contacting “friends at coin telegraph.” That’s us. He also suggested that Withers’ decision to temporarily rescind his nomination could be a media opportunity.

“Maybe this was a big brain marketing move by Sam and it’s going to get picked up by coin telegraph… Kidding (slightly) but I have reached out to Sam and apologized,” he said.

The press release also highlighted a previous controversy in February, when Warwick proposed partnering with Su Zhu, the disgraced founder of Three Arrows Capital, for a crypto gaming session.

He described the Su Zhu incident as a “win/win” situation on Discord at the time due to its potential for multiple articles, DAO coordination and exposure to new audiences.In actual game news, Illuvium launched its Overworld Beta 2 on May 18, bringing new features and 30 new Illuvials to the game. The number of beta participants will also expand from 30,000 to 75,000. It claims it has two million registered beta users. It is also planning to bring out Illuvium: Zero on mobile this year.

Illuvium’s Overworld Beta 2 blends high tech with dodo birds (Illuvium).

Is ownership in Web3 gaming ‘bullshit’?

The idea of ownership in Web3 games may be hurting adoption more than it is helping, according to a Twitter thread and article by Vader Research, a consultancy company for Web3 gaming economics, that ignited some debate among the Web3 gaming community.

“Our industry is misleading players and investors with the ‘ownership’ narrative,” the company argued on Twitter.

Despite someone holding an NFT in a wallet, game devs retain significant control over the asset, including the ability to change metadata and the ability to blacklist NFTs.

“Web3 gaming has certain benefits but also has limitations. Exaggerating the capabilities of the technology will likely increase the polarization between NFT haters and NFT maxis. Acknowledging limitations and weaknesses will help us attract more developers and players from web2 gaming,” Vader Research wrote.

But while there are nuances to be aware of — if a game shuts down, your items shut down with it — Magic Eden Chief Gaming Officer Chris Akhavan still says “ownership” is the right word.

“Just like in real life, there are limitations with what you can do with things you own. You can own a plane, but that doesn’t mean you can use the plane in ways that violate FAA regulations,” he told Cointelegraph.

“What Web3 ownership gives you is the freedom to control your ownership of game items, whether you want to buy, sell, trade or gift an item to a friend is all up to you. That’s absolutely fundamental to the concept of ownership.”

Assassin’s Creed smart collectibles promise customers real-life cubes

Assassin’s Creed, one of gaming giant Ubisoft’s most popular titles, is getting an NFT collection. Like many Web2 crossover projects, it’s using a fancy name that is not “NFT.”

The “smart collectibles,” which will debut on Polygon, are the brainchild of Integral Reality Labs (IRL), a United States-based Web3 company.

The smart collectibles are linked to physical objects that will be shipped to holders. (Integral Reality Labs/Twitter)

Those that snag one of the 1,500 passes will gain access to exclusive perks via IRL’s companion app. They will also get a physical 3D cube featuring unique traits and containing an embedded near-field communication (NPC) chip.

Ubisoft is considered one of the more NFT-friendly Web2 gaming behemoths. NFT collections have also been created based on its Rabbids franchise.

The NFTs will not be useable in actual Assassin’s Creed games and IRL noted that “there is no direct link between Assassin’s Creed games or game content and IRL Smart Collectibles.”

Epic Games CEO salty about the ‘death of the Metaverse’

Epic Games CEO Tim Sweeney has taken exception to a Business Insider article by Web3 critic Ed Zitron about the death of the metaverse.

He suggested organizing an online wake “so that we 600,000,000 monthly active users in Fortnite, Minecraft, Roblox, PUBG Mobile, Sandbox, and VRChat can mourn its passing together in real-time 3D.”

The metaverse is dead! Let’s organize an online wake so that we 600,000,000 monthly active users in Fortnite, Minecraft, Roblox, PUBG Mobile, Sandbox, and VRChat can mourn its passing together in real-time 3D.https://t.co/tRpFHsdZLw— Tim Sweeney (@TimSweeneyEpic) May 9, 2023

The article in question posits that metaverse hype has been replaced by the “new, more promising trend” of generative AI. If you go by how many self-styled crypto experts have updated their LinkedIn to “AI expert,” it’s an easy concept to get on board with.

And with Mark Zuckerberg as its number one promoter, it is hard to take the metaverse seriously. The word has become synonymous with his badly-animated cartoon avatars that resemble something from a budget children’s TV show as opposed to a groundbreaking technological feat.

Gameplay still from Fortnite. (Fortnite/Epic Games Store)

But both Zitron and Sweeney are talking past each other because they have very different definitions of what the metaverse is. Zitron at one point compares it to platforms like Fortnite, which he describes as “large online games,” while Sweeney thinks they’re the same thing.

Until everyone can agree on a definition, the metaverse continues to be a confusing, nebulous concept. Blockchain companies continue to strive for progress toward the idea, whatever it ends up being.

Game review: Aurory Prologue for Adventures

Aurory launched its highly anticipated Prologue for Adventures last week as a closed alpha offering a sneak peek at its upcoming Adventures game.

Players can explore the village of Blanche in the Solana-based game’s fictional world of Tokane. It’s still quite limited and there’s not much to do except for bet tokens on Speed Blitz, a 1v1 auto-battling game.Whether it works depends on whether there’s a player available betting the same amount to compete against. It took a couple of attempts for this reviewer to find the time when other players were online (morning UTC+8 bad, evening UTC+8 good).

While you get to choose the Neftie (a Pokemon-esque creature) and the amount you want to bet, that’s pretty much all the control you have over the outcome, and the battle happens so quickly it’s a bit of a mystery what even happened at all.

Part of the lack of players is likely down to the high cost of obtaining an Aurorian to try out the game. The collection’s floor price currently stands at a hefty 20.98 SOL ($423).

A player, one of many, that beat me during Speed Blitz. (Aurory)

Truth be told, there’s minimal gameplay in the alpha, which is expected. The ability to text chat with other players is a nice touch considering how many MMOs aren’t adding it in early versions.

Overall, for an early look at what the team is building, it’s satisfying enough and warrants a return when more features are added.

Adventures is ultimately the game that Aurory believes will have the broadest appeal. It follows the release of turn-based strategy battler Tactics, which came out late last year.

Other Stuff

— My Pet Hooligan’s alpha 1.5 release has been delayed due to uncertainty about how long it will take it to go through Epic Games’ QA process, according to a tweet by the company on May 11.

— Axie Infinity: Origins has finally made it to the Apple app stores in Argentina, Colombia, Peru, Mexico, Venezuela, Indonesia, Malaysia and Vietnam. Sky Mavis announced on May 17 that it would join the computer-based Sky Mavis Hub and some regional Google Play Stores as a way of accessing the still-popular game.

Callan Quinn
Callan Quinn is a British freelance journalist covering crypto and tech. She has worked as a business journalist in China, the UK, Somaliland and the republic of Georgia. Previously, she was also an NFTs, gaming and metaverse reporter at The Block.

Our biweekly roundup for the Web3 gaming community, featuring news, reviews and the latest on new releases.

Storybook Brawl shuts down servers

Months after the spectacular collapse of Sam Bankman-Fried’s crypto empire, the casualties keep coming. 

Good Luck Games, the creators of Storybook Brawl – reportedly disgraced FTX CEO Bankman-Fried’s second-favorite game after League of Legends – took down its servers on May 1. The team said it had explored different options to continue, and unfortunately, there was no path forward.

Originally a non-crypto game that launched on Steam in June 2021, Storybook Brawl was an autobattler card game featuring characters from fairytales and legends. It peaked at 2,770 concurrent players in September 2021 and FTX Ventures acquired it in March 2022. 

Following the acquisition, gamers protested by leaving negative reviews for the game on Steam. 

Although it never developed to the point of releasing any of the planned blockchain integrations, Bankman-Fried, who is subject to a 13-count indictment, described the game as an opportunity for FTX to be “the vanguard for the ethical integration of gaming and crypto transactions.” Ironic.