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Nothing Phone 1 Specs: How This Cheaper Phone Compares to the Pixel 6, iPhone 13
Nothing Phone 1 Specs: How This Cheaper Phone Compares to the Pixel 6, iPhone 13
There's a lot of hype surrounding the Nothing Phone 1 launch, especially considering its midrange price. But there are valid reasons for the fanfare. The Phone 1 is Carl Pei's first phone launch since his departure from OnePlus, which he led from a startup beloved by serious Android fans to a global purveyor of world-class phones.
Nothing says it's sold more than half a million pairs of its Ear 1 earbuds, its first consumer tech product, since its launch last August. And Nothing counts a glittering group of backers -- including iPod co-inventor Tony Fadell, Twitch co-founder Kevin Lin and GV, formerly Google Ventures -- all betting Pei can create a big something out of his curiously named company.
The Phone 1, which is available in both black and white, went up for sale today, July 12. It's slated for a global release, hitting distributors across the world including the UK, Germany, India and Hong Kong. There's currently no plan for a US release, a spokesperson for the company said.
While pricing varies across markets, the Phone 1, starts at approximately $475 for the base 8GB RAM, 128GB storage variant and maxes out at about $590 for the 12GB RAM, 256GB storage variant after converting from international prices. With this price range, the Phone 1 is up against the iPhone SE 2022, the Google Pixel 6 and the Samsung Galaxy S21 FE, among others. You can also scroll down to the bottom of this page for a side-by-side specs comparison, but make sure to check out our hands-on video of Phone 1 to glean first-hand insights of the device.
The Phone 1 includes a 6.55-inch OLED display, a dual-camera module, a fast-enough processor, a large battery with wireless charging and reverse charging. It also has an in-box charger, a feature that's increasingly uncommon even in premium phones. But one thing is obvious: The lion's share of Nothing's budget went towards design, although it may not be entirely unique considering the Phone 1's design, which echoes the iPhone's flat sides and rounded edges.
In an industry first, the Phone 1 has a transparent back panel, which gives you a peek of the device's components, including the camera, wireless charging coil and USB-C port. Procuring components that look good and function well under a transparent cover required meticulous customisation of components as well as rigorous testing, the company said. Rival manufacturer Xiaomi tried to create its own phone with a transparent design in the past, but its version used dummy components to mask the real ones.
The back of the Phone 1 is also home to the so-called "glyph" interface, the device's standout feature. The back of the phone literally lights up, thanks to hundreds of LED lights, which can be customized to tell you who is calling or indicate charging status. Given the design costs, Nothing said it was forced to make some tradeoffs to bring the Phone 1 to fruition at its targeted price. One of those is the chipset, which is the Snapdragon 778G Plus instead of the latest Snapdragon 8 Gen 1 processors. The company said it chose the midrange Qualcomm chipset because it's tried, tested and it "doesn't overheat."
The Phone 1 may not be as durable as some of its peers. Its IP53 rating is less than the IP67 rating of the similarly priced iPhone SE 2022, for example. The former rating means Phone 1 is protected against dust, and light sprays of water, but it is hardly waterproof. In other words, you'll be fine if you're caught in a light shower with this phone, but you shouldn't go running in the rain with it. Dropping it in the sink or toilet is a no-go, and you should definitely not take it anywhere near a pool.
To learn more about how Phone 1 stacks up against competitor phones, take a look at CNET's specs chart below.
Nothing 1 vs. competitors
Nothing Phone 1
Apple iPhone SE (2022)
Google Pixel 6
Samsung Galaxy S21 FE
iPhone 13
Display size, resolution
6.55-inch OLED display, 2,400x1,080 pixels
4.7-inch LCD; 1,334x750 pixels; 60Hz
6.4-inch OLED; 2,400x1,080 pixels; 60 or 90Hz
6.4-inch AMOLED screen; Full HD Plus resolution; 2,340x1,080 pixels; 120Hz
Battery sized not disclosed (charger not included; supports wireless charging)
4,614 mAh
4,500 mAh (no bundled charger)
Undisclosed; Apple lists 19 hours of video playback
Fingerprint sensor
In-display
Under display
In-display
No
Connector
USB-C
Lightning
USB-C
USB-C
Lightning
Headphone jack
No
None
None
None
No (Face ID)
Special features
5G, IP53, Three years of Android updates, dual SIM, 120Hz adaptive refresh rate
5G-enabled; supports 25W wired fast charging; water-resistant (IP67); dual-SIM capabilities (nano-SIM and e-SIM); wireless charging
5G sub 6 (some carrier models also have 5G mmWave) support, Wi-Fi 6E, 30W fast charging, Magic Eraser, Motion mode, Real Tone, Face Unblur, Cinematic Pan, five years' OS and security updates, IP68 rating for dust and water-resistance, Gorilla Glass Victus (front), Gorilla Glass 6 (back), (nano-SIM and e-SIM)
Nothing Phone 1 Review: Flashy Extras Highlight This Affordable Phone
Nothing Phone 1 Review: Flashy Extras Highlight This Affordable Phone
The Nothing Phone 1 -- the company's first phone -- is a 5G phone that gets a lot of things right, from its stripped-back interface to its generally sold performance and, most of all, its quirky transparent design with unique flashing LEDs on the back. It's a phone that I've been keen to get my hands on ever since its announcement, and after spending some time with it, the excitement hasn't faded.
But it's the price that makes this phone so appealing. Starting at only £399 in the UK (which converts to roughly $480 or AU$700), the Nothing Phone 1 is at least £100 less than I expected it to be. It's a low price, but what you get is a phone that feels like a premium product.
That is, if you can buy one. While the phone is on sale now in the UK and Europe, there are currently no plans for a full launch in the US. Nothing said that it's "definitely aiming to launch a US-supported mobile in the future," but it seems unlikely to happen any time soon. It may be that people in the US miss out on this first-gen model altogether.
Should you buy the Nothing Phone 1?
The Nothing Phone 1 certainly isn't an iPhone 13 Pro or Galaxy S22 Ultra rival. But it's not trying to be. It's a good phone, not because it tries to cram in every feature you could possibly imagine, but because it leaves them out. Both its hardware and software are stripped back, leaving you with a phone that's well suited for everyday needs at a price that'll still leave some cash in your bank.
It's rare that a new company arrives on the scene with a first product that feels this polished, but the Nothing Phone 1 manages to get all the essentials right, while adding in the extra pizzazz of that flashy design. If you're after a well-performing phone for a good price, it's definitely worth considering.
A flashy design, a big display
The Phone 1's design is certainly the thing that sets it apart from the competition. The back panel is entirely transparent, letting you see the interconnected components beneath including the wireless charging coil and multiple exposed screwheads. The only Nothing branding is a small logo in the bottom corner.
That transparency also allows for the lightshow; a set of LED strips, which Nothing calls the "glyph," light up across the back panel to alert you to incoming calls or notifications or even to use as a fill light when recording video. It's certainly unique and it's nice to see some different ideas on phones, especially in the budget sector, which is often awash with forgettable gray or black slabs.
The Nothing Phone 1 houses its selfie camera in a cutout on the top-left corner of the screen.
Andrew Lanxon/CNET
But it's also arguably something of a gimmick. Time will tell how useful it really is. You might just not like the design, which is fair enough, but at this price it's fair to say you're not just paying for its looks.
Around the edge is a recycled aluminum frame that gives the phone a satisfyingly sturdy feel, while its IP53 water-resistance rating will help keep it safe from spilled drinks.
The 6.55-inch display is big enough to do justice to Netflix shows on the move, as does its 2,400x1,080-pixel resolution and vibrant colors. Its 120Hz refresh rate means that swiping around the home screens or scrolling through webpages looks buttery smooth.
Good enough performance for the price
Powering the phone is a Qualcomm Snapdragon 778G Plus processor, backed up by 8GB of RAM. Results on benchmark tests for both processing power and graphics performance put it far away behind top models like the iPhone 13 Pro or S22 Ultra and slightly less behind more affordable handsets like the Pixel 6 or 6 Pro.
Nothing runs a rather clean version of Android 12 adding minor improvements throughout.
Andrew Lanxon/CNET
That should be expected for a more affordable device, and the reality is that it's still got plenty of power for the majority of tasks you'd likely need it to do. Gaming in Asphalt 9: Legends and PUBG were handled perfectly, as was video streaming and image editing in Snapseed. Even just navigating around the interface was swift and nippy.
That's likely helped by a stripped-back approach to the software. The phone runs Android 12, over which Nothing has slapped a minimal cosmetic skin. Overall, it's a light touch and doesn't include bloatware, preinstalled apps or services. Nothing hasn't tried to pointlessly develop its own email client (it knows you'd rather use Gmail) or create its own web browser (because you'll use Chrome, of course). In fact, all of the system apps are just the default Google ones.
This minimalist approach works well, making the phone feel clutter-free and usable. It's an approach I like. For comparison, Samsung notoriously preloaded its phones for years with its own software and services, making its phones feel bogged down.
Behind the top layer of internal components is a 4,500-mAh battery.
Andrew Lanxon/CNET
Solid dual cameras
Nothing kept the camera setup stripped back too, equipping the phone with just two rear 50-megapixel cameras including a standard wide-angle lens and an ultrawide lens. Nothing has kept the cost down by omitting dedicated telephoto and macro cameras, which is a good decision.
Notice the way the Phone 1's main camera captures the sky and clouds in this photo.
Andrew Lanxon/CNET
The colors are vibrant in this photo from the main camera.
Andrew Lanxon/CNET
The cameras take great photos. The main camera captures vibrant colors, with even exposure and plenty of detail. Side-by-side, shots from my iPhone 13 Pro are arguably better, but they're certainly not twice as good. It's worth remembering that the iPhone costs twice as much as the Nothing Phone 1.
Here is a shot of a river boat taken with the main camera.
Here's the same riverboat in a photo from the ultrawide. There is some noticeable color shift.
Andrew Lanxon/CNET
The ultrawide camera does a solid job for snaps in good light, but there's a noticeable shift in the color balance.
The 16-megapixel resolution of the selfie camera provides plenty of detail while the colors are rich and vibrant.
Andrew Lanxon/CNET
Nothing's cameras are by no means the best ones around, but if that's what you're looking for you'll need to spend more than twice the cash on the Galaxy S22 Ultra. For the money, the Phone 1's cameras do a superb job and will suit you well if you want vibrant shots of your next family vacation.
OK battery life with fast charging
Providing the juice is a 4,500-mAh battery, which is capacious enough to keep you going for a full day as long as you're fairly careful with what you do. In my tests, after an hour of streaming a YouTube video on Wi-Fi with the screen at maximum brightness, it had dropped from full to 93%, and further to 83% after a second hour.
That's not a great performance -- the OnePlus 10 Pro, Pixel 6 Pro, iPhone 13 Pro and Honor Magic 4 Pro all put in better efforts here. But it's a demanding test, and with more cautious use you shouldn't struggle to get a day out of it. If you're not playing graphically intense games or streaming lots of videos, you should make it through a day. Though you'll definitely need to charge it every night.
Getting it charged when you're in a hurry shouldn't be an issue. The Phone 1 supports 33-watt fast charging, which Nothing claims takes it from empty to 50% full in under 30 minutes. Unfortunately, a compatible fast charger doesn't come in the box and is only available as an add-on accessory.
Nothing Phone 1 specs vs. Samsung Galaxy A53 5G, Google Pixel 6A, Apple iPhone SE (2022)
London-based startup Nothing is launching its first smartphone, Phone 1, on July 12. However, Americans who were eagerly anticipating the launch will be disappointed -- the phone won't be available in the US, the company confirmed to CNET. Leaker Evan Blass noted the absence earlier this week.
"Whilst we'd love to bring our second product to the entire community around the world, we will be focusing on home markets, including the UK and across Europe where we have strong partnerships with leading local carriers," a Nothing spokesperson said in a statement. The phone will reportedly skip Canada, too.
Nothing is "definitely aiming to launch a US-supported mobile in the future," the spokesperson added, noting that a number of investors will be able to buy the Phone 1 in the US in a "closed beta program."
After launching in January 2021, Nothing released its first product, a pair of headphones called Ear 1. Its products' design have been marked by clear exteriors that provide a view of their innards.
Founder Carl Pei, who also co-founded OnePlus, has a history of designing high-quality phones that are cheaper than their rivals and has said Phone 1 will rival the iPhone. The phone will run on the Android-based Nothing OS and be powered by a Qualcomm Snapdragon chip.
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Keep Hackers Off Your Wi-Fi. 10 Tips to Securing Your Home Network
Keep Hackers Off Your Wi-Fi. 10 Tips to Securing Your Home Network
This story is part of Home Tips, CNET's collection of practical advice for getting the most out of your home, inside and out.
How important is it to make sure your home network is secure? Well, just last year, internet crime cost people in the US more than $6.9 billion, and while phishing and scams contributed to the losses, personal data breaches were also a significant factor. In many cases, those personal data breaches could have been prevented by a little home network security.
The average US home now has more than 10 devices connected to the home Wi-Fi network. From laptops and tablets to phones, smartwatches and streaming devices, things add up quickly, and all are potentially vulnerable to hacking. With so much data stored on those devices -- credit card numbers, bank records, login credentials and other personal and private information -- you want to make sure you're protecting yourself from hackers if your network is ever compromised.
A secure home network will help reduce the risk of getting hacked and someone accessing your sensitive information. Not only that, it will keep away any unwanted or unauthorized users and devices that would slow down your connection or freeload on the internet service you pay for.
It's fairly simple to create and maintain a secure home Wi-Fi network. Below, you'll find 10 tips for securing your network. Some are more effective than others at keeping hackers and freeloaders at bay, but all are useful in their own way. Keep in mind that nothing can guarantee absolute security from hacking attempts, but these tips will definitely make it harder for anyone to compromise your network and data.
How to secure your home Wi-Fi network
Here are the basics for protecting your home Wi-Fi network. Keep reading for more information on each below.
1. Place your router in a central location.
2. Create a strong Wi-Fi password and change it often.
3. Change the default router login credentials.
4. Turn on firewall and Wi-Fi encryption.
5. Create a guest network.
6. Use a VPN.
7. Keep your router and devices up to date.
8. Disable remote router access.
9. Verify connected devices.
10. Upgrade to a WPA3 router.
Place your router in a central location
Strong network security starts with a smart setup. If possible, place your router at the center of your home. Routers send wireless signals in all directions, so strategically placing your router in a central location will help keep your connection to the confines of your home. As a bonus, it will likely also make for the best connection quality.
For example, if you have internet in an apartment where neighbors are immediately to the left and right of you, placing your router next to a shared wall could send a strong, and tempting, signal their way. Even if you aren't in an apartment, a good router can cast signals next door or across the street. Placing your router in a central location will help reduce how far those signals travel outside your home.
Create a strong Wi-Fi password and change it often
This should go without saying, but I'm going to cover it still to emphasize its importance. Creating a unique password for your Wi-Fi network is essential to maintaining a secure connection. Avoid easily guessed passwords or phrases, such as someone's name, birthdays, phone numbers or other common information. While simple Wi-Fi passwords make them easy to remember, they also make it easy for others to figure them out. (Here's how to access your router settings to update your Wi-Fi password.)
Be sure to change your password every six months or so, or any time you think your network security may have been compromised.
Chris Monroe/CNET
Change the default router login credentials
Along the same lines of password-protecting your Wi-Fi network, you'll also want to keep anyone from being able to directly access your router settings. To do so, go ahead and change the admin name and password for your router. You can log in to your router settings by typing its IP address into the URL bar, but most routers and providers have an app that lets you access the same settings and information.
Your router login credentials are separate from your Wi-Fi network name and password. If you aren't sure what the default is, you should be able to find it on the bottom of the router. Or, if it's been changed from the default somewhere along the way, again, here's how to access your router settings to update the username and password.
Turn on the firewall and Wi-Fi encryption
Most routers have a firewall to prevent outside hacking, as well as Wi-Fi encryption to keep anyone from eavesdropping on the data that's sent back and forth between your router and connected devices. Both are typically active by default, but you'll want to check to make sure they're on.
Now that you know how to log in to your router settings, check to make sure the firewall and Wi-Fi encryption are enabled. If they're off for whatever reason, go ahead and turn them on. Your network security will thank you.
Create a guest Wi-Fi network
"Can I get the Wi-Fi password?" is undoubtedly something all hosts have heard. Before sharing access to your main home network, consider creating a separate guest network for visitors. I'm not suggesting your guests are going to attempt anything nefarious with your main Wi-Fi connection, but their devices or anything they download while connected to your network could be infected with malware or viruses that target your network without them even knowing it.
A guest network is also ideal for your IoT devices, such as Wi-Fi cameras, thermostats and smart speakers -- devices that may not hold a lot of sensitive information and are perhaps more easily hackable than a smarter device such as a computer or phone.
James Martin/CNET
Use a VPN
There are a few reasons to use a good VPN, and network security is definitely one of them. Among other things, a virtual private network hides your IP address and Wi-Fi activity, including browsing data.
VPNs are probably more useful when connected to a public network, but they can still add a level of security and privacy to your home network. Some VPNs are better than others, but like anything, you often get what you pay for. Free VPN services are available, but paying a little extra (seriously, just a few bucks per month) will deliver a much better, more secure service.
Keep your router and devices up to date
Software updates always seem to pop up when you need to get online most. While they can be annoying, there is a purpose to them and it often includes security updates. When companies become aware of potential or exposed security vulnerabilities, they release updates and patches to minimize or eliminate the risk. You want to download those.
Keeping your router and connected devices current on the latest updates will help ensure you have the best protection against known malware and hacking attempts. Set your router to automatically update in the admin settings, if possible, and periodically check to make sure your router is up to date.
Disable remote router access
Remote router access allows anyone not directly connected to your Wi-Fi network to access the router settings. Unless there's a need to access your router while away from home, to check or change the configuration of a child's connected device, for example, there should be no reason to have remote access enabled.
You can disable remote access under the router's admin settings. Unlike other security measures, disabled remote router access may not be the default.
Verify connected devices
Frequently inspect the devices that are connected to your network and verify that you know what they are. If anything on there looks suspicious, disconnect it and change your Wi-Fi password. You'll have to reconnect all your previously connected devices after changing your password, but any users or devices that are not authorized to use your network will get the boot.
Some devices, especially obscure IoT ones, may have some odd default names of random numbers and letters that you don't immediately recognize. If you come across something like that when scrutinizing your connected devices, go ahead and disconnect it. Later on, when you can't start your robot vacuum cleaner from your phone, you'll know that's what it was.
Upgrade to a WPA3 router
WPA3 is the latest security protocol for routers. All new routers should come equipped with WPA3, so if you buy a new router, you should have nothing to worry about there. However, many people rent their routers directly from the provider, which may not include the most up-to-date equipment.
If your router was made before 2018 it's possible that you have a WPA2 device, which lacks the same level of security protocols as newer, WPA3 devices. A quick search of your device's model should tell you when it came out and any specific features such as whether it has WPA2 or WPA3. If you've got a router with WPA2, call your provider and negotiate for a better, more recent router.
Network security is not a guarantee
Again, even with the most recent and effective methods of protecting your home network, security is never going to be 100% certain. As long as there is the internet, hackers and cybercriminals will find ways to exploit it. But with the tips above, hopefully you can better keep your network secure from anyone trying to use your connection or access your data.
For more, check out how to tell if your internet provider is throttling your Wi-Fi and our tips on how to speed up your Wi-Fi connection.
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Beyond Axie Infinity: 'Web3 Games' Hope to Convert Crypto Skeptics
Beyond Axie Infinity: 'Web3 Games' Hope to Convert Crypto Skeptics
The moment Chris saw Axie Infinity, he was hooked. He was once an avid gamer, playing hours of League of Legends every day, but stopped after deciding he was sinking too much time into an unproductive hobby. Axie Infinity promised something different. Inspired by Pokemon, it's a video game about training and battling monsters. That sounds like hundreds of other games, but one element distinguishes Axie Infinity. It's built on the blockchain.
Axies are the Pokemon of Axie Infinity, but they're owned as nonfungible tokens, or NFTs. A cryptocurrency called Smooth Love Potion is earned by battling these Axies. Players can also breed Axies, then either sell or battle with them. Chris, who declined to give his real name and goes only by the pseudonym Cryptobarbarian, felt he could justify playing video games again -- as long as it paid.
"It was fun for the first few weeks, but it gets boring really fast," the 28-year-old said. From there, he said, Axie Infinity became purely about making money.
Axie Infinity is a browser game. Accessing it is free, but you need to buy a team of three Axies to play. At its peak of popularity, bottom-tier Axies cost around $350 each, meaning playing the game once required a four-figure investment. The game allows Axie owners to lease out their monsters to other players, however. A longtime crypto investor, Cryptobarbarian told me he bought $30,000 worth of Axies and loaned them out in return for 40% to 70% of the profits. (CNET wasn't able to verify his purchases.)
The strategy paid off at first. Axie Infinity was a hot ticket in CryptoTown, generating over $15 million a day last August. But thanks to a combination of poor in-game economics, inflation threatening the real world's economy and a $600 million hack reportedly caused by a fake job posting, the price of Axies and the game's Smooth Love Potion cryptocurrency collapsed. The same monsters that cost hundreds of dollars last year now fetch under $10.
"I got around 100 players playing for me with high-end Axies," Cryptobarbarian said to me over Twitter, "which overall cost around $100,000 at the height and are now worth nothing."
To gamers, stories like this provide ample reason to reject "Web3 gaming," a term referring to the integration of NFTs and cryptocurrency into games. The significant carbon footprint of ethereum and bitcoin adds to the resentment. Be it Ubisoft bringing NFTs into Ghost Recon or Square Enix launching Final Fantasy 7 NFTs, gamers have fiercely resisted the blockchain coming anywhere near their industry.
Three Axies in Axie Infinity.
Sky Mavis
The fear is that crypto and NFTs will deform gaming into a side hustle, transforming its purpose from entertainment to moneymaking. Play-to-earn titles such as Axie Infinity prove the point; they're not games as much as they are financial speculation with the veneer of a game.
"I've never met anyone that played it just for fun," Cryptobarbarian said of Axie Infinity, "only to make money."
But Axie Infinity doesn't represent the future that many Web3 developers envision for gaming. Video game firms, both small and large, are developing titles they hope will clean the slate of Web3 gaming. All are on carbon-neutral blockchains such as polygon or solana, which are far more efficient than ethereum. (Whether they're as secure is an open question.) The goal isn't to make titles that entertain crypto speculators, but rather to make games fun enough that people can justify playing them regardless of whether they earn crypto.
"I've long been a believer that gaming is one of the consumer internet categories that is most likely to bring on mainstream adoption of crypto," said Amy Wu, head of gaming at FTX Ventures, the investment arm of the FTX crypto exchange. "But I also believe when you have a hit game with Web3 elements, it's very likely that the majority of players will never actually trade those tokens. They're just playing the game."
Free to play, play to own
The upcoming wave of Web3 games will range from free-to-play mobile titles to big-budget AAA games for PC and console. On the simpler end of the scale is Shatterpoint. With an art style inspired by Legend of Zelda: Breath of the Wild, it's an action RPG for Android and iOS that, on paper, looks like many top App Store games. There's a single-player campaign plus a PvP multiplayer mode. You earn new weapons and gear as you progress and, much like Fortnite and Call of Duty, the multiplayer is broken up into different "seasons."
But these seasons, segmented by "the shattering" in the game, is where the blockchain comes in. Players will be given a certain list of goals each season. If they complete one -- say, being one of the first 100 players to reach level 50, or staying atop of the PvP leaderboard for a certain amount of time -- their character will be converted into an NFT. Only a limited amount of NFTs will be minted per season.
There are two reasons why players might want to bother scoring an NFT. The shattering acts as an in-game reset, so any gear you've collected will vanish. NFT characters, of which there will be a limited amount each season, are permanent. However your character looks when it's minted into an NFT, with whatever combination of gear equipped, that's how it'll look in perpetuity. The second benefit is that these NFTs can be sold on a marketplace -- if there's a market for them.
A screenshot from Shatterpoint.
Estoty Games
There are three crucial elements that make this model sustainable, says Shatterpoint developer Benas Baltramiejunas. First, the game is free to play -- unlike P2E games like Axie Infinity, which requires the upfront cost of three Axie NFTs. Second, none of the items retained as an NFT can resemble "pay to win" mechanics. There can only be cosmetic benefits to owning it, not a competitive edge. Last, and most important, the game is designed with the assumption that most people playing won't be interested in minting their character as an NFT. It has to be fun for them too.
"We're using the NFT approach to create a bit of competitiveness, to incentivize players to play," he said. Shatterpoint is monetized by traditional microtransactions and from taking a small cut of NFT sales -- 2.5% is the traditional cut creators take. Baltramiejunas hopes that focusing on NFTs will result in both better game design and fairer prices. If developers can create a compelling game, revenue can theoretically be sorted out organically through whatever the player base sets as the value of the NFTs.
"In free-to-play games you have whales which account for 10% of the player base but 90% of the revenue," Baltramiejunas said. "If you only have those microtransactions for monetization, you are only focusing on those whales during the content creation, and you're leaving everybody behind. However, with NFT integration, you don't need to monetize that aggressively. The market decides."
NFT brands expand into gaming
While Shatterpoint is a mobile game that produces NFTs, the coming years will see many examples of the reverse: NFT collections turning into games. NFT drops, such as the famed Bored Ape Yacht Club, are doubling as crowdfunding platforms that produce games. Creators earn millions in royalties from sales, and use that money to expand the brand, theoretically boosting NFT prices in the process. Some brands are expanding into TV and film. Many are dabbling in gaming.
One such example is My Pet Hooligan. It's a product of AMGI Studios, an animation studio where former Pixar animator Colin Brady serves as chief creative and technology officer. The studio sees Unreal Engine 5 and blockchain technology as the next technologies that will drive entertainment, Brady told me at the recent NFT.NYC conference.
AMGI Studios' goal of 2021 was to use Unreal Engine 5 to create an animated film for Netflix at half of the traditional cost. While the film was being greenlit, Brady explained, AMGI technical lead Kevin Mack approached him about starting an NFT collection.
The result was My Pet Hooligan, a set of 8,888 3D rabbits. "We sold out in less than a minute, and all of a sudden people started saying, 'hey, when movie? When TV show? When video game?'" Brady said. The studio, filled with Unreal Engine programmers, already had a game in the works.
The result is Rabbit Hole, a sandbox game that looks like a mix of Grand Theft Auto and Ratchet and Clank. Rabbit Hole is currently in closed alpha, available only for My Pet Hooligan NFT holders with only one map functional. The build of the game I saw at NFT.NYC was intriguing. It was certainly incomplete, with noticeable frame-rate issues, but had the clear foundation of a fun sandbox game.
My Pet Hooligan NFTs on the OpenSea marketplace.
AMGI Studios/OpenSea
Rabbit Hole will eventually be available for PC and console. Brady says the goal is to reach 1 million players by the end of the year. To encourage the type of in-game socialization seen among players of Fortnite and Roblox, the studio developed a companion facial-recognition app for phones. If you perch your phone where a webcam typically is on a computer, it'll track your face and replicate all facial movements on your on-screen Hooligan.
Unlike Shatterpoint, which will integrate just NFTs, Rabbit Hole will use both NFTs and crypto. It will have a play-to-earn mechanic -- or play and earn, as technical lead Kevin Mack prefers to say -- in the form of in-game currency Karrots. These will be used to buy clothing, dances and more for the Hooligan avatars, but it doubles as a cryptocurrency that can be exchanged for ether or bitcoin. You can earn money playing Rabbit Hole, but Brady said it's not going to be life-changing cash.
Then there's the NFT element. This is primed towards holders of the 8,888 My Pet Hooligan NFTs. While players who download the game will start with a generic Hooligan, My Pet Hooligan owners will be able to use their NFT as an avatar in the game.
If the game gets popular enough, Mack said, there will be a certain prestige to owning one of these avatars. But he recognizes that to make that happen, the team has to make a game that people actually want to play.
"Superman No. 1 is valuable because Superman was a great comic," he said. "I think the NFT space for a while started to get that a little backward, where they thought the things were valuable just because they were collectable."
To infinity...
Of all the NFT brands expanding into games, Bored Ape Yacht Club is the biggest. BAYC creators Yuga Labs are developing Otherside, a "metaverse" MMORPG. The term "metaverse" is nebulous, but in this case it refers to an open world where items are owned as NFTs and in-game currency is crypto that can be exchanged for dollars. Details on Otherside are scant, but Yuga has a huge warchest for it. The game's map will be made up of 200,000 plots of land, which players can buy and own. Over $350 million was raised from selling land back in May.
Otherside may be the Web3 game with the highest budget, but perhaps the most ambitious is Star Atlas.
In development since 2020, the Eve Online-inspired Star Atlas is crafted like a traditional AAA game. Michael Wagner, CEO of Star Atlas development studio ATMTA, told me there are around 200 developers working on the game. It's scheduled for release in 2026.
Like Eve Online, Star Atlas is half game, half space simulator. Players ride spacecraft through the galaxy, socializing and battling with each other, exploring exoplanets, mining lands and meteors for resources and so on.
Games like Eve Online are giant, big enough for players to lose themselves in for years. Star Atlas hopes to mimic that feat. On the way to doing so, it uses almost every new tool Web3 offers.
It starts with funding. Wagner said $185 million in revenue was raised in 2021, through the sale of an Atlas token and NFT ships, with a "substantial margin" of that funding development. In the game, ships, items and land will be owned as NFTs. There will be a comprehensive crypto economy built atop the game, which Wagner says will allow for not just a market, but a labor economy too. The economy isn't just in the game; part of Star Atlas will be built on the blockchain, meaning elements will be open source. People will be able to develop apps on top of this data, for things like spacecraft maintenance or resource management.
Part of Star Atlas' economy will involve taxation. Just like in real life, a certain percentage of all sales will go to a treasury. There will be a DAO, or decentralized autonomous organization, in which token holders can vote on how these funds are used, be it to fund a new marketing campaign or a user engagement campaign. Then there will be another DAO specifically for the game itself, where token holders can vote on changes to the game, like additional features or ways to balance combat.
"We've structured the economics of the DAO such that we don't lose control in the near term," Wagner said. "But in the future, it would even be possible for them to vote us out as the principal developer of the game and bring in somebody new if they think they could deliver the product in a superior fashion to us."
Risks and rewards
The potential of Web3 gaming is tremendous, but its challenges are enormous. An examination of Star Atlas alone highlights many issues Web3 developers are likely to face.
First and foremost, making video games is hard. Making high-quality AAA games is harder still, even for veteran game studios, and the Star Atlas game alone is audacious in its ambition. The Web3 components offer additional opportunity for failure: An imbalanced economy, for instance, has the potential to completely break the game. Then there's security and regulation. Crypto has been a digital Wild West for years, with scams endemic. Regulators are slowly changing that. It's an open question whether Web3 gaming can survive in a regulated environment.
"In many countries, consumer protection is the No. 1 driver of regulations. Given gaming is so mainstream, it will be a topic," said FTX Ventures' Wu. "100%, these assets are going to be regulated."
The final issue is the very commodity that fuels crypto tokens and NFT projects: hype. Games are often promised on NFT project road maps before a single second of development has been undertaken. As Brady noted, it took less than a day for My Pet Hooligan holders to demand the announcement of a game, movie or TV show to sustain hype and lift the NFT value. Vaporware is sure to be common.
Games will need to be developed in a way that insulates players from the crypto-rich speculators. Speculators outbidding each other can artificially raise the value of in-game items, which blocks players who actually want to play the game from accessing them. Recall the speculative bubble that caused the cost of entry to Axie Infinity to inflate to over $1,000.
"I'm personally not interested in someone who's paying $100,000 for an NFT," said Brady. "That's a certain echelon. That's not normal society. I'm only interested if this helps every person."
Of all the developers I spoke to, a recurring theme was mistrust of any games company that promises a regular income, or dangles the possibility of earning enough money to quit the rat race. "Play-to-earn is not sustainable and is going to die off," said Baltramiejunas. Instead, the goal is for Web3 games to be more engaging than the games you play today, with the benefit of some pocket money on the side.
"If the game was good I would be satisfied with a little money as long as it's not totally a time waste," said Cryptobarbarian, reflecting on how much money he'd need to earn to justify playing games again.
"If I could earn some lunch money with it, that would be nice. But I think that will take at least a few more years before it happens."
