In this week’s Metacast episode, Nicolas Vereecke, David Amor and Abhimanyu Kumar, join your host Maria Gillies to discuss EA’s Rumored Sale or Merger and how a company like NBCUniversal, Disney, Apple or Amazon could benefit from acquiring EA. The team also discusses Merit Circle DAO Proposal to Remove YGG Seed Investor: What instigated the proposal and if its fair. Finally, the group discusses whether or not Crypto Gaming is broken.
EA’s Rumored Sale or Merger
- Context
- First surfacing in this article by Puck News, multiple sources have shared that Electronic Arts (EA) may be seeking a sale or merger, supposedly having already approached NBC Universal, Disney, Apple and Amazon.
- This would be significant as EA owns some major IPs, including The Sims, Apex Legends, Madden and Need for Speed, which could upscale and/or have their ownership transferred if the rumor is true.
- This could be EA’s attempt to stay relevant, as many major studios have been scaling up through acquisition recently.
- E.g. Embracer acquiring 3 companies, Activision Blizzard getting acquired by Microsoft.
- EA has been losing relevance thanks to it’s late entry into mobile gaming, and could be re-energized through a merger.
- Our opinions on a merger with possible company:
- Unlikely to merge with Apple.
- The ethos of both companies seems fundamentally different, and Apple is currently focused on Apple Arcade.
- NBC Universal may be the best option for them
- EA owns many IPs and NBC could majorly expand them.
- Disney is unlikely, but would benefit them.
- Disney’s role in gaming is currently focused on licensing out IPs. They seem reluctant to fully commit to gaming.
- If they acquire EA, it could kickstart greater involvement from them in gaming.
- Amazon
- Seems like an odd contender, as they are more involved with other non-gaming related forms of entertainment. However, it could be argued that all digital entertainment mediums compete both within and between with each other for consumer’s screen time.
- Amazon in the past has seen success through acquiring, rather than internally creating, games, notably with Lost Ark. They could repeat this with EA, another powerhouse in publishing.
- Unlikely to merge with Apple.
Merit Circle DAO Proposal to Remove YGG Seed Investor
- Context
- Yield Guild Games (YGG) and Merit Circle, two arguably major decentralized autonomous organizations (DAOs), are play-to-earn focused DAOs that also provide scholarships.
- In October 2021, Merit Circle closed their seed round, raising $4.5 million. YGG contributed $175,000.
- Some members of Merit Circle felt YGG’s contributions were insufficient and have submitted this proposal to fully refund YGG’s initial investments.
- In response, YGG issued this official statement, saying they felt this was illegal and unfair.
- We feel that on the whole, Merit Circle is being shortsighted and foolhardy.
- A company’s value cannot be measured only through their financial contribution; YGG is a significant enough group that a mere association with them could have marketable value.
- YGG is powerful enough to help Merit Circle if they were to experience troubles in future.
- Then again, it is not feasible to constantly readjust a company’s value based on hypothetical future scenarios.
- There is little legal basis to remove YGG from the agreement and is hence unlikely to be passed.
- On the other hand, this could be a strategic move by Merit Circle to separate them from YGG in the public eye and to show their high standards for investors.
- This incident offers a rare glimpse into the working mechanisms of Merit Circle and DAOs.
- As this proposal was made by community, rather than high-ranking, members of Merit Circle, it shows that regular members get to be involved in important decisions, a trait some are viewing positively.
- As Merit Circle is a decentralized entity, it’s possible the group may not have consistent company values or identity and that this incident may not accurately reflect them.
- This topic will be discussed further in the next episode of Crypto Corner.
Is Crypto Gaming Broken? We Don’t Think So
- Context
- Nat Eliason, an advisor at Crypto Raiders, published this article titled “Crypto Gaming is Broken. How Do We Fix It?”
- He writes that NFTs and DeFi “set a bad precedence for games.”
- It may be more accurate to say that they are being over-indexed and used sub-optimally. This could be because they haven’t been fully experimented with yet as they’re still very new.
- Rather than completely move away, we should embrace them as an additional possible avenue for innovation.
- Even if it is truly a “bad precedence”, this is not necessarily detrimental. In fact, it could be part of what makes these games interesting.
- Although there are undeniably issues with crypto gaming, it is far from “broken.”
- Another interesting point Eliason makes is that internal and external economies should be separated as far as possible.
- This is so that the external economy will not affect the enjoyability of the game.
- This is something that could be accomplished with stable coins.
- This calls in the larger question of what makes a game “well designed.”
- Developers may not always know what players may enjoy and should not restrict their idea of what could be “fun.”
- For example, [FarmVille](https://socialmediaweek.org/blog/2018/04/farmville-the-craze-that-changed-facebook-forever/#:~:text=To get people playing Farmville,of Facebook's 350 million users.)’s more passive gameplay may not be readily associated with typical ideas of “fun,” but the game was hugely popular.