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8 investors discuss social gaming’s biggest opportunities

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8 investors discuss social gamings biggest opportunities
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The gaming industry has had plenty of watershed moments in 2020 as consumer entertainment habits have shifted in response to the pandemic. One trend has been the crystallization of MMOs as social entertainment hubs that serve more needs for users than ever before.

Following my survey of gaming-focused investors on trends in the AR/VR world several months ago, I pinged a handful of investors to tap their thoughts on the shifting trends and opportunities in social gaming.

One thing that most investors expressed excitement around was the widening entertainment ambitions of social platforms, as concerts and movie screenings find homes on gaming platforms like Fortnite.

While evolving free-to-play mechanics continue to elevate the experience of single-player titles into something more living and breathing, platforms like Roblox have found areas for growth that seem more unique, developing into destinations for users to communicate and share.

“It’s where culture is created,” Madrona’s Daniel Li told TechCrunch.

Not all of the respondents shared the belief that a gaming platform like Fortnite would grow to become the next Facebook. General Catalyst’s Niko Bonatsos pointed to adjacent platforms like Discord or Twitch as the constants that would remain as consumers cycled through different platform ecosystems. Other pointed to the the still-disjointed experience switching between mobile and desktop experiences as a yet-to-be-solved stumbling block.

Building the metaverse and building a popular casual mobile game are two different things. Most investors I talked with emphasized how much the pace of scaling has accelerated across categories though with breakout hits rising faster than ever while disasters seem to grow evident just as quickly.

“I think that you look at Among Us, and Cyberpunk on the other side, anything can happen much faster and more extreme than it used to be just because of distribution,” Rogue VC’s Alice Lloyd George told TechCrunch.

Read below for the full answers; some responses have been edited for length and clarity.


Hope Cochran and Daniel Li, Madrona Venture Group

The idea that the next big social network will be an MMO seems to be a trendy take in the VC world, what are the roadblocks to this actually happening?

Daniel Li: Hope and I were trading some notes and part of our thesis is that gaming is the future of social and for Gen Z, gaming is replacing not just old games, but it’s replacing TV and Netflix. So instead of going to watch music videos on YouTube, you’re going to a concert in Roblox and that’s a social experience with your friend … instead of going to the mall, now you’re in Roblox. It’s where kids are hanging out and it’s where culture is created.

Hope Cochran: And in COVID, it’s the only place where they can hang out and I think the gaming industry has done a really fabulous job creating another social engagement that we need right now. I don’t want to focus too much on kids, but parents are becoming more accepting of their kids in the games because there is this social engagement and, for instance, I can see that my child is upstairs connecting with his four best friends. They log in together and they play. They normally might be out on a soccer field but they can’t right now so I think parents are becoming a little more comfortable saying, “Oh, he’s playing with his friends.”

Gaming has seemingly become a more “mainstream” area for investment, as someone who has been in the space a bit, what’s different about investing in the gaming sector?

HC: It’s very hard to find that balance between creative or understanding what might become a hit and a real business mind. So my experience has been that when you look into a gaming company as an investor, it’s actually more driven by math, stats and analytics, and then you have a core team who has the creative juices, so I try to look for that kind of dynamic.

So, who is developing what the users will love and who is analyzing it and how are they responding to what the users are loving. I do think there’s a point where a team develops a game and it’s mostly a creative process but then you have to kind of toggle to the analytics. It’s where the mathematicians meet the magicians and there needs to be a combination of that within every game.

What’s different about how popular games and MMOs are scaling these days? Have you seen any interesting growth hacks or strategies that seem promising?

DL: I think there are more and more of these cultural memes that just seem to come out of nowhere, like Among Us kind of just sat there for two years and streamers started picking it up and now it’s super popular. I’d say for nearly all of those, they’re going to be a social category of games, you don’t see a game like Cyberpunk come out of nowhere without any marketing dollars behind it.

So I do think one of those new channels is getting influencers to talk about your games, and typically I think for those it’s not actually the big influencers picking it up, it’s a whole bunch of small influencers all starting to play a game and have it start to build up steam that way. It’s more likely the Call of Duty’s that can hire the big streamers and pay them millions of bucks to play a new game, but I don’t think there’s a new to go-to-market for smaller studios around that.

How can MMOs, which feel like fundamentally active experiences, provide a better passive experience for users that may be more interested in the community than playing a first-person shooter or battle royale? How do games become more approachable to a wider audience?

DL: A lot of people are saying these single-player games aren’t really fun games anymore, they’re just like cinematic experiences. Like playing Cyberpunk for 60 hours versus binge-watching three TV series, it’s definitely a different experience. The thing that’s actually more interesting here is the virtual events that are happening inside these games. Thinking about what the next Twitch looks like, it’s probably some kind of experience where you’re inside the game doing something more passive.

Niko Bonatsos, General Catalyst

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We asked ChatGPT what will be Google (GOOG) stock price for 2030

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We asked ChatGPT what will be Google (GOOG) stock price for 2030

Investors who have invested in Alphabet Inc. (NASDAQ: GOOG) stock have reaped significant benefits from the company’s robust financial performance over the last five years. Google’s dominance in the online advertising market has been a key driver of the company’s consistent revenue growth and impressive profit margins.

In addition, Google has expanded its operations into related fields such as cloud computing and artificial intelligence. These areas show great promise as future growth drivers, making them increasingly attractive to investors. Notably, Alphabet’s stock price has been rising due to investor interest in the company’s recent initiatives in the fast-developing field of artificial intelligence (AI), adding generative AI features to Gmail and Google Docs.

However, when it comes to predicting the future pricing of a corporation like Google, there are many factors to consider. With this in mind, Finbold turned to the artificial intelligence tool ChatGPT to suggest a likely pricing range for GOOG stock by 2030. Although the tool was unable to give a definitive price range, it did note the following:

“Over the long term, Google has a track record of strong financial performance and has shown an ability to adapt to changing market conditions. As such, it’s reasonable to expect that Google’s stock price may continue to appreciate over time.”

GOOG stock price prediction

While attempting to estimate the price range of future transactions, it is essential to consider a variety of measures in addition to the AI chat tool, which includes deep learning algorithms and stock market experts.

Finbold collected forecasts provided by CoinPriceForecast, a finance prediction tool that utilizes machine self-learning technology, to anticipate Google stock price by the end of 2030 to compare with ChatGPT’s projection.

According to the most recent long-term estimate, which Finbold obtained on March 20, the price of Google will rise beyond $200 in 2030 and touch $247 by the end of the year, which would indicate a 141% gain from today to the end of the year.

2030 GOOG price prediction: Source: CoinPriceForecast

Google has been assigned a recommendation of ‘strong buy’ by the majority of analysts working on Wall Street for a more near-term time frame. Significantly, 36 analysts of the 48 have recommended a “strong buy,” while seven people have advocated a “buy.” The remaining five analysts had given a ‘hold’ rating.

1679313229 737 We asked ChatGPT what will be Google GOOG stock price
Wall Street GOOG 12-month price prediction: Source: TradingView

The average price projection for Alphabet stock over the last three months has been $125.32; this objective represents a 22.31% upside from its current price. It’s interesting to note that the maximum price forecast for the next year is $160, representing a gain of 56.16% from the stock’s current price of $102.46.

While the outlook for Google stock may be positive, it’s important to keep in mind that some potential challenges and risks could impact its performance, including competition from ChatGPT itself, which could affect Google’s price.


Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.

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This Apple Watch app brings ChatGPT to your wrist — here’s why you want it

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Apple Watch Series 8

ChatGPT feels like it is everywhere at the moment; the AI-powered tool is rapidly starting to feel like internet connected home devices where you are left wondering if your flower pot really needed Bluetooth. However, after hearing about a new Apple Watch app that brings ChatGPT to your favorite wrist computer, I’m actually convinced this one is worth checking out.

The new app is called watchGPT and as I tipped off already, it gives you access to ChatGPT from your Apple Watch. Now the $10,000 question (or more accurately the $3.99 question, as that is the one-time cost of the app) is why having ChatGPT on your wrist is remotely necessary, so let’s dive into what exactly the app can do.

What can watchGPT do?

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Discord goes all in with AI: chatbots, automods, whiteboards and more

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Discord goes all in with AI: chatbots, automods, whiteboards and more

AI is the future, at least over on Discord.

The messaging application originally made for gamers has become Gen Z’s favorite online hangout destination of choice, and now it’s rolling out a number of features powered by artificial intelligence.

In an announcement(Opens in a new tab) on Thursday, Discord shared what’s coming to the platform soon: an AI chatbot, an automated AI moderator, a conversation summarizer, an avatar remixer, and a whiteboard. Some of these features begin rolling out today, March 9. Others will launch in the coming weeks and months.

While AI has jumped into the mainstream thanks to the popularity of OpenAI’s ChatGPT chatbot, Discord has had an active AI community for quite a while now. According to the company, third-party AI apps already on the platform already have more than 30 million monthly users. Nearly 3 million servers on Discord have some AI element integrated into the community.

In fact, the biggest community on Discord is Midjourney, a text-to-image AI project which allows users to generate art from right within the server. Discord says Midjourney’s server has more than 13 million members.

So, with AI being such an integral part of Discord already, it seemed like only a matter of time before Discord itself started bringing AI directly into the platform.

images

AutoMod AI
Credit: Discord

The first feature coming to some Discord servers as soon as today is AutoMod AI. Discord already has an AutoMod feature, which basically automatically moderates rooms for admins based on the rules of the server. Discord has now integrated OpenAI-powered AI into AutoMod, allowing it to search the server and contact moderators when it thinks rules are possibly being broken. According to Discord, AutoMod AI can also consider the context of a conversation so, for example, users don’t get penalized for posts that are misconstrued.

Clyde is a bot that Discord users may already be familiar with, and starting next week, Clyde is getting an AI upgrade. Currently, the Clyde bot provides information, such as server error messages, and also responds to timeout or ban requests from users and mods. However, that’s pretty much all Clyde was able to do. Until now.

Clyde chatbot

Clyde
Credit: Discord

Clyde will now be able to answer all sorts of questions from users, much like OpenAI’s ChatGPT chatbot. Users simply have to type “@Clyde” followed by their prompt. Clyde will be able to pull up information and also help find specific emojis or GIFs based on a user’s description.

Another AI feature coming to Discord next week is Conversation Summaries. Again, the name is fairly descriptive of what it does. With users all over the world, many Discord channels are always moving regardless of time of day. Conversation Summaries will allow users to catch up on what they missed on a Discover Server. The AI-powered feature will “bundle” chats into topics so users can easily read up on what they find most interesting.

Conversation Summaries

Conversation Summaries
Credit: Discord

Starting today, developers can start playing with Avatar Remix, an open-source Discord app that integrates AI art into the messaging app. Avatar Remix allows users to take a fellow user’s avatar and change it up “using the power of generative image models.” What does that mean? In the demo that Discord showed Mashable, a user was able to add a party hat or a mustache to a friend’s avatar by simply mentioning their username and describing what changes they’d like to make.

Avatar Remix

Avatar Remix
Credit: Discord

The company is also launching an “AI incubator,” offering support for developers creating AI-powered apps on Discord.

Finally, Discord revealed a feature that’s coming soon that has long been requested by the Discord community: a whiteboard. But, of course, this won’t be just any collaborative whiteboard feature. It’s going to be AI-powered, allowing users to collaborate in generating AI art and more.

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