Author: Zen, PANews
Web3 gaming, once a major application direction for cryptocurrency and Web3, is experiencing a severe winter. Not only have many small to medium-sized Web3 game studios ceased operations, but the market value of leading company Immutable's tokens has also fallen out of the top hundred. In the investment and financing market, large amounts of funding for Web3 gaming projects have not been seen for a long time, and the related narrative seems to have collapsed.
However, against this backdrop, independent game studio Distinct Possibility Studios (DPS) has recently completed a $30.5 million funding round, a rare amount in the current Web3 gaming industry. This round of financing was co-led by Bitkraft, a venture capital firm focused on gaming, and European hedge fund Brevan Howard, with participation from the Tezos Foundation, Hashed, Delphi Ventures, Shima Capital, North Island Ventures, and Decasonic, among others.
According to official disclosures, the raised funds will be used to develop its first project—a large open-world persistent first-person shooter (MMOFPS) named (Reaper Actual)—which is planned for release on platforms like Steam and Epic. According to the official statement, the game will also integrate the Ethereum Layer 2 chain Etherlink, allowing game assets such as characters, bases, and skins to be traded on-chain.
How did DPS raise tens of millions of dollars in funding against the trend?
Distinct Possibility Studios (DPS) is a new studio co-founded by several veterans of the gaming industry, whose core leadership team consists of heavyweight figures in the traditional MMO and large-scale shooting game fields, which is a key factor in their ability to raise substantial funding. The existence of DPS aims to further create more engaging and attractive multiplayer gaming experiences.
DPS's founder John Smedley is one of the representatives of the American gaming industry, particularly well-respected in the MMO field. He served as CEO of Daybreak Game Company (formerly Sony Online Entertainment, or SOE) for a long time, leading the operation and development of many classic games in the company's history. His most famous works include the 3D MMORPG (EverQuest), launched in 1999, and the large free MMOFPS (PlanetSide 2), released in 2013. (EverQuest) is among the first graphical massive multiplayer online role-playing games (MMORPGs), having a profound impact on gaming history.
Before founding DPS, John Smedley's most recent public position was General Manager of Amazon Game Studios, dedicated to developing new game projects, but he announced his formal departure in early 2023. In an email to employees, he wrote: 'After careful consideration, I have decided that it is time to try something new.' Perhaps it was then that Smedley decided to establish DPS.
In addition to John Smedley, other key leadership positions at DPS are also held by experienced industry veterans with impressive resumes. The Chief Creative Officer of DPS, Matt Higby, has been deeply involved in the online gaming field since joining SOE in 2001, having participated early in the design and operation of (EverQuest II), (Star Wars: Galaxies), and (Free Realms). He later served as the Creative Director of (Star Wars: Clone Wars Adventures) and also held the position of Creative Director for (PlanetSide 2), overseeing the game's worldview, gameplay balance, and subsequent updates.
DPS's Chief Artist Tramell Ray Isaac (commonly known as T-Ray) is also highly regarded; he is a key artistic member of the well-known game series (Fallout) and created numerous Vault Boy images. As the head of art, he has extensive experience in visual presentation of game worlds, characters, and scenes, having served as art director at top studios such as Interplay, SOE, and Obsidian.
On the left, the first person is John Smedley, the second person is Matt Higby, and the one on the right is T-Ray, featuring the flagship game (Reaper Actual) and selectable Web3 elements.
(Reaper Actual) is an open-world persistent first-person shooter (Open-World Persistent FPS). The official introduction states that this game will 'combine tactical shooting gameplay with MMO-style progression systems and strategic faction dynamics.' The game is set on the fictional island of Marova, where players assume the role of a mercenary warrior known as 'Reaper,' continuously clashing with other players and AI-controlled factions. Core gameplay includes base building, resource collection, faction alliances, and large-scale raid battles, with the game world and combat evolving and updating continuously based on player actions. Players' decisions and actions will influence territorial control and the progression of in-game events, enhancing the always-online world experience.
Specifically, (Reaper Actual) features the following unique gameplay and mechanics:
Open world and faction conflict: The game supports free exploration and combat on a large map, where different player factions and AI factions clash for territory and resources. Players can freely choose to join different factions, collaborate with allies, and engage in large-scale PVP and PVE missions.
Base building and resource management: Players can establish and upgrade their bases on the map for defense, production, and troop gathering. Base construction and upgrades consume resources and affect the types of troops and equipment available in the game.
Player-driven economy: The game features a player-led economic system where players can produce weapon vehicles and equipment, deploying them when needed. By completing various tasks and objectives, players acquire resources for construction and expansion, making player actions directly influence the economic cycle and tactical choices in the game.
Dynamic missions and collision objectives: (Reaper Actual)'s mission system supports a mix of PVP and PVE gameplay, where mission objectives may overlap or conflict due to the actions of different factions, leading to unpredictable combat encounters. For example, at the same time, different factions may receive opposing missions, and player teams may meet unexpectedly, adding to the game's tension and diversity.
It is important to note that DPS does not fully bet (Reaper Actual) on the Web3 gaming track. It states that when the game goes live, it will offer an optional Web3 asset marketplace: skins, bases, and other items acquired by players can be bought and sold through this market, which operates on the Etherlink blockchain. This way, (Reaper Actual) retains the free play and social experience of traditional games while allowing players with needs to use blockchain technology to 'own and trade' in-game assets.
Why choose the niche L2 network Etherlink?
Etherlink is an EVM-compatible Layer 2 scaling network based on the Tezos blockchain, utilizing Tezos's Smart Rollup technology, which combines the advantages of the Ethereum ecosystem's toolchain (such as compatibility with Ethereum wallets and indexers) with Tezos's highly secure architecture.
According to Etherlink's official documentation, it can achieve sub-second transaction confirmations (usually below 0.5 seconds), with extremely low transaction costs, typically not exceeding $0.001 per ERC-20 transaction, making it economically viable for small in-game transactions. In terms of security, Etherlink's transaction states are regularly published on the Tezos main chain, inheriting the security guarantees of Tezos Layer-1; moreover, it employs an open validation and dispute resolution mechanism, ensuring the network is decentralized and difficult to tamper with.
These advantages are significant reasons for DPS's choice of Etherlink. DPS states that Etherlink can support 'a large volume of transaction demand' and employs an 'energy-efficient' consensus protocol while featuring 'secure and reliable smart contracts.' Smedley mentioned that choosing Tezos and Etherlink aims to support high transaction volumes, energy-saving protocols, and secure smart contracts. Furthermore, the vision of Tezos and Etherlink aligns with its strategy of bringing traditional gamers into Web3 through optional offerings and focusing on accessibility.
However, more reasons may lie in Etherlink being a 'favorite child' of Tezos, a Layer 2 solution strongly supported by the Tezos community. Similar to (Off the Grid) for Avalanche, Etherlink is pushing for the landing of its first key projects, needing benchmark games to 'support the platform.' Therefore, it is natural for the Tezos Foundation to invest and guide it onto the Etherlink.
(Reaper Actual)'s prospects?
Overall, (Reaper Actual) launched by Distinct Possibility Studios undoubtedly has a luxurious development team background and remarkable financing scale, but from the project progress and industry environment, it is still in an extremely early stage.
Currently, the overall chill in the Web3 gaming sector has not subsided, with significant uncertainty remaining regarding players' acceptance of on-chain assets, regulatory and compliance risks, and the seamless integration of on-chain and off-chain gameplay. Even with John Smedley leading the way, DPS finds it difficult to completely avoid these challenges in the short term. Therefore, while this $30.5 million 'reverse trend financing' may boost confidence to some extent, a cautiously optimistic attitude should be maintained. In the coming years, the public testing progress of (Reaper Actual), on-chain economic model, and user retention rate will be the key indicators to judge whether it can truly 'break the ice and break through.'
In addition, (Reaper Actual) is designed to incorporate Web3 features as optional modules, indicating that the team may not have placed all their bets on the blockchain. Even if the on-chain version ultimately does not meet expectations, players can still enjoy a complete and mature gaming experience, which is also an effective risk hedge for game developers focused on high-quality games.
