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Editor’s note: Blockchain game studio 0xGames was shut down due to financial problems. Previously, 0xGames had made three blockchain games and achieved good results, which were supported and loved by many players.
On September 14th, 0xGames, a well-known blockchain game studio from Cyprus, announced that it had decided to shut down due to financial problems. It will end the sale of in-game items this week and plans to open source its games and transform it into community autonomy.
According to public information, 0xGames was established in December 2017. Prior to this, the promotion was to build an interstellar universe on the blockchain.
It is reported that 0xGames has previously developed three blockchain games 0xUniverse, 0xBattleships, and 0xWarriors, and the market has responded well. In particular, the studio’s first game, Ether StarCraft 0xUniverse, has achieved good results after it went online, and has been ranked in the forefront of blockchain games, and has been supported and loved by many players.
However, according to the 0xGame team blog information, the team began to encounter financial difficulties in 2019 and also sought EOSIO support to no avail. After that, he again asked the Tron team for help, but the other party not only failed to provide sufficient support as agreed, but still owed part of the funds to 0xGames. In addition, the investors decided to withdraw, so 0xGames had no choice but to declare bankruptcy.
On September 14, the official team of 0xGames released a blog post ” A Tough Decision “, announcing that it had decided to close the studio due to financial problems. It will also end the sale of in-game items this week, and plans to open source its games and transform it into community autonomy. Follow Gyro Finance to sort out the overall context.
In 2017, 0xGames founder Sergey Kopov began to notice the blockchain technology. At that time, a game called CryptoPunks used actual results to show that this technology can be successfully applied to games, allowing the creation of new game mechanisms, which is fiercely competitive Is very valuable in the game market. Later, the success of CryptoKitties further demonstrated that blockchain games can attract a lot of attention.
At this time, Sergey met an investor who was also interested in this emerging market segment and thought it was promising. They worked together and agreed to do a pilot project and form a team. This is how the 0xGames studio appeared, and the development of 0xUniverse was also started.
In the first six months, Sergey managed to gather the team and released the first version of 0xUniverse. As a result, the team obtained a steady flow of funds from investors. Sergey insisted that the team should focus on the growth of audience and brand value, rather than care about profits, because soon the audience of blockchain players will grow substantially, and profits will not be one. Issues to consider. Under this premise, the team thought about the roadmap of 0xUniverse, and began to plan the production of new projects based on the accumulated experience.
In the second half of 2018, the team’s work was very effective. The team participated in various meetings, shared experiences, and communicated with other developers, attracting more like-minded people to join the team. With their help, the team created and built new games one after another: 0xUniverse: Battleships, 0xWarriors and 0xRacers.
According to the team, the team was very confident at that time and believed that the investors would provide the necessary funds to allow them to carry out 4 projects at the same time. In addition, they began to develop the 0xFramework platform, hoping that it could become a reliable technical foundation, and also the basis for the team to attract future projects and investments as a publisher within a few years.
Entering a difficult period
The success of 2018 did not continue to 2019, although 0xUniverse continues to be updated, players are also growing rapidly. Even in March 2019, the game was more popular than CryptoKitties, but then the team encountered the first difficulty.
Although 0xUniverse has brought some successful experience, on the other hand, it proved that Ethereum was not suitable for running blockchain games at that time . So 0xGames began to consider the multi-blockchain architecture, but the team said that trying to cooperate with other public chains is not so ideal. For example, the team spent a lot of time contacting EOSIO, but did not contact its developers and did not get their support. Later, the team contacted the Tron team. At first they were very friendly and promised to provide market and financial support. But in the end, the Tron team broke its promise. Not only the related marketing support was minimal, but also the 0xGames team owed some money.
But to make matters worse, the audience of blockchain games has not grown as expected by the team investors, and the number of players has remained at the same level. In addition, the two revolutionary blockchain projects of Facebook Libra and Telegram TON have also been difficult to produce due to various reasons. In addition, the Facebook advertising platform continues to ignore blockchain games, and other channels have no effect on the team.
With these failures, the relationship between the team and investors began to deteriorate, and the team no longer received financial support on a regular basis.
This forced the team to freeze part of the development plan and change the main goal set last year. According to the team, the main goal for 2019 is not growth, but to reach the break-even point as soon as possible.
Since then, the 0xGames team focused on improving 0xFramework, hoping to make a game that can be used as simple and convenient as possible for casual players who are not familiar with blockchain technology.
By September 2019, things started to take shape.
The team began to purchase Facebook advertisements for casual players. The first experiment can be said to be relatively successful. The team attracted players to the 0xUniverse Android version at a relatively low cost, which was very helpful to the team because the team’s funds were exhausted at that time. At the same time, the team also reached an agreement with investors to continue financing and began to expand the scale of the advertising campaign.
According to the team’s estimation, the team should reach the break-even point by the end of the first quarter of 2020.
However, in December 2019, the investor notified the 0xGames team that he would no longer be able to support the team, and the team had to return the remaining funds in the account at that time. As a result, the team greeted the new 2020 without money but debt. According to the team, they don’t know the reason for the investor’s decision. It is speculated that the investor’s key project has encountered a problem. He decided to concentrate all his time and resources on it at all costs.
At the same time, due to the high load and huge gas costs caused by projects such as DeFi, Ethereum has actually stopped part of its work from May 2020. Players cannot continue to play 0xUniverse. The previously planned transition to Matic has also been delayed. The situation becomes more complicated.
Only the emergence of new investors can save the team’s company, and the team conducted many negotiations. However, another transaction failed last week, and the team can no longer maintain its current state.
So on September 14, the 0xGames team had to admit that the team company and project had almost no chance of salvation. Although the team has put their minds on 0xGames, it will now have to be closed. But this is not the worst, because the team knew in advance that game development is a risky industry and not every project can be successful.
Although the studio announced its closure, the 0xGames team has decided to turn the project into open source and into an autonomous state. All functions, including transactions between players, will continue to run, and the commission collected will be used for escrow. In this state, as long as the player’s interest is still there, the team will maintain the project as much as possible.
At the end of the blog, the 0xGames team stated that it is still full of hope and will continue to look for investors.
After the reincarnation of popularity and doubt, 2020 is indeed difficult for blockchain games. Not only is the number of players declining severely, but the popularity seems to have long since ceased.
How to prove oneself and how to break the situation is an unavoidable issue facing practitioners.