Gods Unchained was delisted by Epic, Immortal Game halted P2E development, and Web3 gaming still faces numerous challenges entering the mainstream.

Epic Delists Gods Unchained, Immortal Game Halts P2E Development, and Web3 Gaming Continues to Struggle with Mainstream Adoption.

Author: Zen, LianGuaiNews

With the recent improvement in the secondary market, from project parties, investors, to individual investors, everyone is more confident about the return of the “crazy bull market” in 2024. As a track under heavy pressure from investment institutions, the development of Web3 games has been attracting attention and expectations in recent years. According to a recent report from “Fortune Business Insights”, the global blockchain gaming market is expected to reach US$615 billion by 2030, with a compound annual growth rate of 21.8% from 2023 to 2030.

However, Rome wasn’t built in a day. The Web3 gaming industry is currently constrained and suppressed by policies, regulations, and standards in the Web2 gaming industry. It also faces discrimination and bias from traditional players. Creating killer applications and attracting mainstream players is still a long and arduous process. The leading blockchain game, Gods Unchained, was stealthily removed by Epic Games, and ImmortalGame, which received tens of millions of dollars in funding, has ceased development. All these examples confirm this point.

Gods Unchained stealthily removed from Epic Game Store due to “P2E” elements being categorized as “AO”

As one of the flagship games under Immutable, the trading card game (TCG) Gods Unchained occupies a leading position in the Web3 gaming field. According to the DappRadar report, its game transaction volume reached $55 million in the third quarter of this year, second only to Axie Infinity’s $90 million. In order to attract a larger number of traditional PC gamers and TCG enthusiasts, Gods Unchained was launched on the Epic Games Store in June this year. Regarding this important milestone, the game’s executive producer, Daniel LianGuaiez, said: “Gods Unchained being released on Epic Games Store, one of the largest PC game platforms in the world, cannot be overstated.”

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However, shortly after its release on the Epic Game Store, Gods Unchained was quietly removed. As early as three months ago, users on the Reddit community posted inquiries, claiming that they could no longer find the game on the Epic Game Store. One user replied that it had been deleted because it was considered gambling. However, it is widely known that Epic Games has an open attitude towards blockchain games and has been systematically releasing blockchain games. Similarly categorized NFT games are still available on the Epic Game Store. (Related reading: 15 upcoming Web3 games set to debut on the Epic Game Store)

Gods Unchained, as a leading Web3 game, was quietly removed, leaving people puzzled. It was not until recently that the mystery was finally revealed. It turns out that Gods Unchained was classified by the Entertainment Software Rating Board (ESRB) as “Adults Only (AO)”, and Epic Games does not allow any game rated as “AO” by the ESRB to appear on its marketplace.

ESRB is an industry self-regulatory organization that rates electronic games and other entertainment software sold in North America. It was established in 1994 and its rating system has become a familiar and reliable means for parents to determine if a video game is suitable for children. The ESRB rating system is voluntary, with “AO” being the highest rating level. Games with this rating typically include prolonged scenes of intense violence, sexual content, or cash gambling, and are intended for adults aged 18 and older. Generally, an AO rating means that the game is unlikely to reach mainstream visibility – Microsoft, Sony, and Nintendo prohibit games with this rating from being released on their systems or devices, and Twitch does not allow streaming of these types of video games. Additionally, most major retailers do not sell games rated as AO in their stores or on their websites.

According to Decrypt, a representative from Gods Unchained stated that the inclusion of play-to-earn elements in the game was the reason for its AO rating. They are currently working closely with the rating committee and filing an appeal. When asked about the delisting incident, the ESRB stated that factors considered in the product evaluation for the content rating system include the potential for rewarding real money, prizes with real-world value, or items that can be exchanged/converted into real money (such as gift cards, cryptocurrencies, etc.), as well as whether cash is required to qualify for these rewards. However, the ESRB also stated that any game that allows players to earn anything with “real-world value” (such as cryptocurrencies or NFTs) can receive an AO rating, which could lead to more blockchain games being removed from mainstream platforms like Epic.

According to the ESRB process, once the rating results are submitted to the publisher, the game publisher either accepts it as the final rating or chooses to modify the game content and resubmit, thus restarting the rating process. However, according to the ESRB, it would be difficult for Gods Unchained to remove the “AO” label unless it “self-censors” itself to become a traditional TCG game, making it also difficult to return to the Epic Store. It should be noted that currently, other Web3 games on the Epic Store have not applied for an ESRB rating. They either adopt the International Age Rating Coalition (IARC) rating system (e.g., Illuvium rated IARC 12+) or remain unrated and default to a Mature (17+) rating. In addition, ESRB ratings are not mandatory for all game platforms. For example, Steam does not require games to be ESRB-rated before being released on the platform.

It is worth mentioning that Gods Unchained was officially launched on Amazon Prime Gaming on the 5th of this month and has once again entered another mainstream gaming platform within half a year. Prime Gaming members will also receive exclusive in-game items each month. In Amazon’s description of the game, the “AO” rating is prominently indicated, which is also a guideline that Amazon, as a member of the ESRB Retail Council (ERC), should follow.

“Immortal Game” Chess Game Abandons P2E and NFT Development

Just as Gods Unchained and ESRB were competing in the play-to-earn arena, indie game “Immortal Game,” which also utilizes the Immutable X network, announced the abandonment of play-to-earn and the cessation of development on P2E and NFT-related features. Immortal Game had aimed to turn chess into a game with NFTs, play-to-earn rewards, missions, a marketplace, and other functionalities. The developers announced in September 2022 that they had secured $12.2 million in Series A funding from TCG Crypto, Kraken Ventures, and other VC firms, bringing the total funding to $15.5 million.

Immortal Game stated that initially, the team’s intention was to reward the community by implementing encryption technology. However, they found that cheaters were exploiting the platform to gain monetary benefits, which was ruining the fun. In their official announcement, they said, “We found that by offering large sums of money with no requirements, it encouraged serious cheating behavior on the platform, damaging the user experience for legitimate players who wanted to play chess online fairly and securely. We carefully listened to these players’ feedback and took it seriously. The unintended increase in unfair behavior by providing money to players led us to the decision that we cannot turn a blind eye to this situation any longer.”

Immortal Game still plans to explore Web3 and decentralized technologies, particularly anti-cheating measures and community involvement. However, their main focus is on improving the chess platform and ensuring a fair and enjoyable environment for all players. In a significant update on December 11, Immortal Games will no longer support CMT, although NFTs can still be used in Immortal Game’s “Immortal” mode. Additionally, the developers will merge the Immortal and Ageless modes into a more streamlined Immortal mode to simplify gameplay.

The development history of chess spans nearly 2000 years, and people who are fond of this ancient sport tend to lean towards tradition, nostalgia, and conservatism. Last year, chess grandmaster Alireza Firouzja became the official ambassador for Immortal Game. However, after the related videos and content were published on the chess section of Reddit, there was widespread doubt and opposition, with most highly upvoted replies criticizing it as a “crypto scam” and “NFTs.” In hindsight, Immortal Game chose chess as its game theme, but the user base of “trendy and chess-loving” individuals proved to be too niche. In order to cater to a broader audience of chess enthusiasts, abandoning Web3 elements may have been a compromise that Immortal Game had to make.

In fact, it is not uncommon for Web3 games to pause indefinitely or withdraw from development. According to a report from Game7, a decentralized community focused on blockchain games, an astonishing 157 blockchain games stopped development in 2022, and as of November 2023, 43 game projects have been terminated. George Isichos, a core contributor to Game7, stated that Web3 games that stopped development this year had difficulty obtaining funding and were usually projects launched before 2021. Most of the discontinued games came from smaller studios, while very few “AA” and “AAA” games were shut down. Game7 defines “AA” studios as those with funding ranging from $10-25 million, and “AAA” studios as those with funding exceeding $25 million. Compared to projects that faced funding shortages and difficulties in development, the demise of Immortal Games, an unconventional player in the Web3 gaming track, is undoubtedly regrettable.

Summary

Mainstream players are crucial to the vigorous development of Web3 and blockchain games, which is generally recognized by industry practitioners. However, the day when Web3 games truly attract mainstream players may be further away than the upcoming bull market. According to a global Web3 player study released last year by Coda Labs, traditional gamers have a relatively strong aversion to cryptocurrencies or NFTs, with ratings of 4.5 and 4.3 out of 10, respectively. During a bull market, as investors shift their attention to other areas of the market, Web3 users’ interest in Web3 games may decline.

Daniel LianGuaiez, Vice President and Executive Producer of Gods Unchained, believes that mainstream audiences are not necessarily essential for survival, and the key to the long-term success of Web3 games is to focus more on player experience rather than blockchain elements. “The market for gamers is much bigger. You start building a player community that shares the gaming experience, rather than a user community holding the same game assets.” He also stated that Web3 games seeking a “longer lifespan” will need a long-term mainstream audience, as selling content and experiences to players is the foundation of the gaming industry.

However, in addition to improving playability and optimizing the gaming experience, just like the Bitcoin ETF application facing numerous obstacles, Web3 games face challenges and regulatory barriers in the traditional gaming market. As these new technologies continue to penetrate and evolve in the gaming industry, developers and regulatory agencies need to be more proactive in response.

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