It should come as no surprise that many of the current blockchain-based projects will fail. That’s just how it is with emerging technologies. Most of the earlier ideas don’t have the knowledge to succeed, nor is the technology ready. Alex Amsel, leader of blockchain strategy at Fig, echoes that sentiment, reports gamesindustry.biz:
"There are an awful, awful lot [of blockchain startups], and most of them are going to fail, the booms, the busts, the thefts, the arguments" since he started immersing himself in blockchain in 2012. If anyone remembers the dot-com boom and bust, this will be very, very similar."Right now, the platforms of note include Robot Cache and Equiti Games. A new player is entering the field, however, in the form of Planet Digital Partners. The group was founded last year, and calls itself a “collective of video game management, development studios, distribution and marketing executives that develops, manufactures, and markets video games." That said, what makes Planet Digital exciting is the people behind it.
Leading the platform is Steve Grossman, former executive producer of the Nintendo World Championships. Kelly Sumner, previously CEO of both Take-Two and RedOctane, is studio director. The creative directors are Matt Karch and Andrey Iones who founded Saber Interactive, and former president of PlayStation Europe Chris Deering is on the board. Despite moving into an unknown field, Planet Digital has an experienced team ready to do so.
In a statement to gamesindustry.biz, Grossman commented on the new project:
"With decades long experience in the industry, the Planet Digital leadership team is acutely aware of the challenges that exist in the space, especially as it relates to investment. Despite the industry's rapid growth, there are segments of the development sector that encounter considerable difficulty attracting investment. Planet Digital has recognised this opportunity."All blockchain projects have a cryptocurrency token used for participation on the platform. Planet Digital’s asset is the Rocket Token (RKT.) The platform will have a security token offering during the first quarter of 2019. There will be 50 million tokens, and the platform will run on the Ethereum blockchain - the most popular blockchain for building decentralized applications.
The project plans to sell around 38 million tokens in this initial offering, with the leftover 12 million going to the team members, advisors, and other relevant parties. Token prices will start at $1 each.
"First movers are often able to play the role of disruptor," continues Grossman. "Creating the first Private Placement Security Token Offering for the game industry's overlooked development community is Planet Digital's competitive edge versus competitors who are under-capitalised."
Funds from the 38 million will go towards “making and publishing games with an established network of industry partners”. The plan is for budgets between $2-10 million and development timeframes of 12-18 months. According to the pitch deck, raised funds will split at 60% for game development. The rest is divided into 15% for marketing, 5% for manufacturing, and 20% for selling, general and administrative payments.
Grossman wants the token sale to fund around ten games. The platforms publishing branch, Planet Entertainment already owns licenses to distribute on Xbox, PlayStation, and Nintendo platforms. Games will also launch on PC and mobile devices like iOS and Android. Working only with “seasoned game development studios,” Planet Digital is partnered with Saber Interactive and Diversion3 Entertainment.
Interestingly, some games will be based on existing IP’s, while others will be brand new properties. Grossman mentioned Halo, Quake, Friday the 13th, and NBA Playgrounds as some of their developers’ previous experience:
"At this time, we estimate that 40% of our portfolio will be based on existing IP and 60% will be new projects. Planet Digital has a solid product road-map that ensures there is ample budget to develop both new games and those using previous IP. We plan to kick off development in the coming months."Planet Digital Partners expects all games to make over $50 million in profit. 80% of platform profits will go to investors until they’ve received back 100% of their investment. Then, investors will receive 40% on top of 5% of any sequel profits until 2025.
You can watch the company explainer video here: