Deep Dive #2: The Machines Arena

Oscar Noll

Researcher

Blog Writer

The Machines Arena Overview

What’s The Machines Arena?

The Machines Arena is an exciting Web3 game currently in its closed beta stage. To access the beta, interested players can sign up on the game's website. In this game, players engage in intense 4v4 PvP battles, utilizing one of the nine distinct heroes, each equipped with unique weapons and abilities. The Machines Arena falls under the team-based / hero-based multiplayer shooter genre, drawing inspiration from renowned games like Team Fortress 2 and Overwatch.

What sets this game apart is its innovative approach. Instead of the customary first-person perspective, The Machines Arena adopts a top-down view, offering a fresh and easily accessible gameplay experience. Matches are fast-paced, adding to the game's distinctiveness.

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During the closed beta, players can enjoy various PvP and PvE experiences. PvP modes include "Pushback" (similar to Overwatch's push mode), "Detonation," and "Skirmish." On the other hand, the PvE mode, known as "Death Run," enables players to compete for high scores and the chance to obtain digital collectibles. The game offers a range of gameplay modes, catering to both casual and competitive players, with strategic elements woven throughout.

What’s The Machines Arena’s Roadmap?

The development journey of The Machines Arena spans over two years, originally starting as a Web2 game. The first playtest took place in March 2021, and since then, the team has been dedicated to enhancing the game by consistently delivering updates. These updates have included the introduction of new game modes, additional characters, and seasonal play, ensuring a dynamic and evolving experience for players.

In 2023, The Machines Arena underwent significant advancements, such as the launch of a new website and the addition of a single-player mode. Furthermore, in recent months, the team has introduced three new game modes, further expanding the game's content. Towards the end of March, an exciting partnership was announced between The Machines Arena and the Ronin network, signaling the game's transition to Web3.

Although there is currently no available roadmap detailing future developments, the team's consistent efforts and commitment to the game's evolution serve as positive indicators of ongoing development. Additionally, it is worth noting that the team is actively working on releasing a mobile version of The Machines Arena later this year, expanding the game's accessibility beyond the PC platform.

What Technology Stack is The Machines Arena using?

The game is being built on the Ronin blockchain

The game engine is Unreal Engine 5

Directive Games

Founded in 2014, Directive Games is a game development studio with a diverse team of 51 employees spread across offices in Iceland, Shanghai, the United States, and Singapore.

The studio's initial foray into the gaming world came in December 2016 with the release of Super Kaiju, an arena shooter exclusively for VR platforms. Building on their expertise in virtual reality, Directive Games followed up with another PC title in 2018 titled Ready Player One: Oasis. Inspired by the popular Ready Player One franchise, this shooter game aimed to capture the essence of the fictional universe. Additionally, the studio ventured into the realm of augmented reality with the release of The Machines, a mobile AR experience.

Apart from their work on The Machines Arena, Directive Games is currently involved in the development of another Web3 title called Civitas. This upcoming game is a 4X city builder and has gained recognition as one of the more notable projects in the Web3 gaming industry.

What’s The Machines Arena’s Leadership?

CEO and Co-Founder: Atli Mar Sveinsson

Atli is an accomplished game designer, boasting a remarkable career spanning over two decades in the industry. Throughout his journey, he has held key positions at renowned studios, contributing to the success of several notable titles. Notably, Atli served as the lead designer for Battlefield 2 at DICE, showcasing his expertise in designing immersive gameplay experiences. Additionally, he held the role of lead online designer at Ubisoft, where he played a crucial role in shaping online multiplayer components. At CCP Games, Atli further demonstrated his talent by serving as a creative director, contributing to the overall vision and direction of the studio's projects.

In 2014, Atli co-founded Directive Games, leveraging his vast experience and entrepreneurial spirit to establish his own venture in the gaming industry. With his extensive track record of working at successful studios on highly acclaimed titles, Atli brings a wealth of expertise as both a game designer and an experienced founder.

Senior Programmer and Co-Founder: Hao Wang

Hao embarked on his professional journey as a 3D engine programmer in the early 2000s, honing his skills and expertise in the field. In 2007, he secured the position of lead programmer at CCP Games Asia, where he contributed to projects such as Dust514 and Project Legion. These endeavors aimed to make an impact in the shooter market but unfortunately fell short of achieving significant success. Hao later transitioned to a role as a senior programmer at Tencent for a brief period before co-founding Directive Games in 2014.

While Hao possesses valuable experience as a programmer and has worked at notable studios throughout his career, his involvement in game development has not yet yielded notable success. Nonetheless, his contributions and dedication to the industry are evident, and he continues to explore new opportunities and challenges as a member of the Directive Games team.

Co-Founder and CFO: Andrea Cesaro

Andrea is a key member among the three co-founders of Directive Games, bringing a unique perspective to the team. While he may not possess extensive experience in the gaming industry beyond his involvement with Directive Games, Andrea's professional background spans over 15 years in investment banking, investments, valuation, and equities.

In his role as the Chief Financial Officer (CFO) of the company, Andrea's focus lies predominantly on the business side and financial aspects of the organization.

Art Director: Asgeir Jon Asgeirsson

Asgeir is a highly experienced game artist, boasting an impressive career spanning over two decades. He embarked on his journey in 1999 at CCP Games, where he initially served as a lead concept artist. As his expertise grew, he ascended to the role of art director for EVE Online, a game that achieved great success and acclaim.

Following his tenure at CCP Games, Asgeir joined Solid Clouds, where he assumed the position of art director. During this period, he likely lent his artistic vision and expertise to the development of Starborne, an MMO sci-fi strategy game. Before joining Directive Games as the art director in 2021, Asgeir also engaged in freelance work, further honing his skills and exploring artistic opportunities.

With a significant portion of his career dedicated to EVE Online, a game that enjoyed notable success, Asgeir has established himself as a seasoned game artist with a strong portfolio and a keen eye for creating visually captivating gaming experiences.

Technical Director: Einar Einarsson

Einar is an accomplished programmer with a diverse career that spans several industries. He embarked on his professional journey in 1998, initially focusing on image manipulation and web coding. Over the years, Einar worked for various companies, gaining experience in different sectors.

In 2007, Einar made a significant transition to gameplay programming when he secured a position as a senior programmer at CCP Games. His role involved contributing to the development of the EVE Group and showcasing his expertise within the gaming industry. After leaving CCP Games in 2013, Einar took on the role of Chief Technology Officer (CTO) at Jivaro, an Icelandic Poker Platform. However, as of now, the platform appears to be offline. Later he returned as a senior software engineer to CCP Games.

In late 2020, Einar joined Directive Games, assuming the role of technical director. With his extensive programming background and experience both within and outside the game industry, Einar brings a wealth of knowledge to his position.

Who’s Funding the Studio?

In 2015, the studio successfully raised $3.5 million in a Series A funding round, with GSR Ventures acting as the lead investor. Additionally, in March 2016, Directive Games received a grant of approximately $100,000 from the Technology Development Fund of Iceland.

More recently, in the second quarter of 2022, Directive Games made headlines by securing a substantial amount of funding. They announced a successful token sale ($CITI for the game Civitas), raising $20 million. The sale was led by prominent investors such as Delphi Digital and Three Arrows Capital. Other notable participants in the token sale included Framework, Bitkraft, and Defiance.

Delphi Digital

Delphi Digital is an independent research firm that specializes in providing comprehensive analyses of the digital asset market. They have established a reputation for offering insightful research and have made substantial investments in various Web3 gaming projects, demonstrating their confidence in the industry.

Three Arrows Capital (3AW)

Three Arrows Capital (3AW) is a cryptocurrency hedge fund based in Singapore. While they were a prominent player in the market, they, unfortunately, encountered challenges and fell into liquidation during the mid-2022 crypto crash.

Framework

Framework Ventures is a notable firm that focuses on building token-based networks. They have made strategic investments in numerous DeFi (Decentralized Finance) and Web3 gaming products, emphasizing their commitment to supporting innovative projects in the space.

Bitkraft

Bitkraft is an early-stage investment platform specifically catering to the gaming, esports, and interactive media sectors. With a strong emphasis on Web3 gaming, Bitkraft has made multiple investments in this emerging field, positioning itself as a key player in the industry.

Defiance

Defiance Capital is an investment firm with a particular focus on Web3 and cryptocurrencies. They have a diverse portfolio, with investments spanning across DeFi, Web3 gaming, and Web3 infrastructure. Their dedication to supporting innovative projects in the Web3 space solidifies their position as a valuable backer.

Verdict

Overall Directive Games has a strong set of relevant backers and seems to have a large enough treasury to keep continue developing the Machines Arenas and Civitas for the upcoming years. Considering The Machines Arena’s current stage of development, the likelihood of the game being completed is high.

The Machines Arena’s NFTs or Digital Assets

Players of The Machines Arena will be able to acquire digital collectibles (NFTs), through various gameplay activities. These NFTs can be earned by participating in different game modes, including day-to-day matches, tournaments, and seasonal rewards.

It is worth noting that the specific utility and appearance of these NFTs have not been disclosed at this time. Further details regarding the functionality and visual design of the NFTs are yet to be revealed.

The Machines Arena’s Social Footprint

Twitter: https://twitter.com/themachinesgame

Discord: https://discord.com/invite/p6a97bKZ6H

TikTok: https://www.tiktok.com/@themachinesgame

Youtube: https://www.youtube.com/@themachinesarena

Twitch: https://www.twitch.tv/themachinesarena

What is The Machines Arena’s Twitter following, engagement, and summary?

The Twitter content shared by Directive Games covers a range of topics, including gameplay footage, collaborations, game events and AMAs, as well as the introduction of new characters. The frequency of tweets varies, with some days featuring no posts while others see up to 3 or 4 tweets, resulting in a moderate amount of content being published.

Among the content shared, tweets related to the partnership between The Machines Arena and Ronin have garnered significant attention. It is noteworthy to consider that this partnership marked the transition of the game from Web2 to Web3. Additionally, gameplay leaks, new game content reveals, and gameplay clips have resonated well with the audience, generating high engagement levels.

Following the announcement of the partnership with Ronin, the number of followers steadily increased, leading to boosted engagement levels. Although the initial surge of engagement may have slightly subsided, the current engagement levels remain significantly higher than before, indicating a strong and active community.

Overall, the growth of Directive Games on Twitter appears healthy, and the team seems to prioritize cultivating a dedicated following rather than focusing solely on building a large number of followers. While occasional giveaways for beta keys and collaborations are present, the studio rarely emphasizes NFT sales or methods of earning. The fact that many of the most-engaged posts are directly related to the game itself is a positive indicator, reflecting the enthusiasm of the community to play The Machines Arena.

Followers on 23-5-23 : 18.1K

What is The Machines Arena’s Discord following, engagement, and summary?

The number of members in the Discord server of Directive Games appears to be somewhat inflated, with only a small percentage (14%) currently online at the time of writing. Despite the member count, the level of chat activity within the server is relatively low. The primary topics of discussion revolve around game-related inquiries, such as how to play the game and redeem beta codes, as well as discussions regarding rewards programs.

Announcements from The Machines Arena are posted quite frequently, approximately once a day. The engagement levels surrounding these announcements experienced a notable spike when the partnership with Ronin was shared. The partnership announcement seems to have attracted a stream of new members who are specifically interested in Web3 gaming and, as a result, are more inclined to spend time in the Discord server. Consequently, engagement levels on the platform have generally increased following this announcement.

Members on 23-5-23: 5.68K

What is The Machines Arena’s TikTok following, engagement, and summary?

The Machines Arena was actively engaged on the TikTok platform, regularly sharing content that provided viewers with behind-the-scenes insights into their game's development. The videos covered a wide range of topics, including animations, 3D modeling, explanations of game mechanics, character introductions, gameplay highlights, and even fun activities organized by the team.

In 2021 and 2022, the team maintained a frequent posting schedule on TikTok. However, this year, they have only shared two videos on the platform so far. The limited activity on TikTok could potentially be attributed to the team's struggle to gain traction or successfully convert viewers into players, prompting them to reduce their presence on the platform.

Followers on 23-5-23: 602

What is The Machines Arena’s Youtube following, engagement, and summary?

In more recent times, approximately a month ago, the team at Directive Games began sharing content on YouTube. Currently, they have released a total of three videos, focusing on various topics such as a beta reveal gameplay trailer and the introduction of two new gameplay modes.

Although the number of comments under these videos is relatively small, they appear to be genuine and reflect a positive sentiment toward the game.

What is The Machines Arena’s Twitch following, engagement, and summary?

Over the past few years, the team at Directive Games has been actively working on establishing a presence in the esports and streaming scene. In 2021, they organized an online tournament as part of their campaign. The primary objective was to launch with 15 professional esports teams, collaborating with the Icelandic Esports Association to increase coverage and awareness of their title. This initiative aimed to contribute to the commercial development of esports in Iceland. The tournament managed to garner a respectable viewership of 136,000 views across Twitch.

Additionally, Directive Games has formed a partnership with Polkastarter Gaming, resulting in the streaming of their game approximately seven times in the past two months. Furthermore, various Spanish Twitch streamers have provided multiple coverages of the game, increasing its exposure to a wider audience.

However, despite these recent efforts, the team has not achieved significant viewership in terms of stream data. While partnerships and coverage have been established, there is still a need for further growth and engagement to generate substantial viewership for The Machines Arena.

Followers on 23-5-23: 94

Who has mentioned The Machines Arena on their Socials?

The team at Directive Games incorporated influencer marketing into their go-to-market (GTM) strategy by implementing various giveaways and promotions through Web3 gaming Twitter. They collaborated with several notable influencers as part of their marketing initiatives.

Summary of Social Footprint

The Machines Arena has managed to establish a commendable following on Twitter through genuine engagement and strategic utilization of influencers to raise awareness and distribute beta keys for their product. However, to reach a wider audience of gamers, the team would need to invest in developing channels like YouTube and Twitch.

Currently, there is limited information available about their minting process, and it is seldom mentioned on their social media platforms. As more details regarding the minting aspect of the game become available, it is expected that The Machines Arena will gain increased traction across its social media channels. This additional information will likely generate more interest and engagement from the Web3 community.

Feature Highlight: AR Spectator Mode

The team recently introduced a new feature called AR Spectator Mode in The Machines Arena. This feature enhances the viewer's experience by allowing them to watch the game from any desired viewpoint, making it more engaging and immersive. Plus will enable more specialized broadcasting. The AR experience contributes to their esports strategy, but it also has broader applications beyond competitive gaming.

Outside of the esports realm, the feature provides viewers with the ability to create unique and personalized cinematic shots. Content creators and players can leverage this feature to produce more captivating and interactive content.

Distribution

To facilitate the distribution of beta keys, the team has opted for a traditional gaming platform, Epic Games. Additionally, The Machines Arena is listed on the Steam Store and will be made available there in future releases of the game.

By leveraging these established publishing platforms, the team aims to eliminate the potential hurdles faced by gamers in familiarizing themselves with Web3 launchers. It also mitigates the risks associated with direct downloads from websites, providing a safer and more accessible experience for players.

Playtest of the Machines Arena - Credit: MyWifeBoughtThis

‘The tutorial needs some voice acting - Gimmie some extra sound effects to go with these very satisfying abilities...and we will be cooking with grease. After I fixed the atrocious key bindings I happily got my Pew Pew on in a couple of diff modes.

Landing massive AOEs had me feeling really good...Like when you're hitting those perfect combos in Dota 2 or League. The matches were very fast but rewarding. Reasonable depth of strat especially if you team up with some friends.

Solid graphics - Got to pop off with a number of different heroes. I loved some and got wrecked with others. These are pretty standard results for games similar to this one. Hoping this team keeps grinding and puts something impressive on that Epic Launcher to Rep the Web 3 world.’

Credit: MyWifeBoughtThis | @BlakeWaddington

What are the risks for The Machines Arena Collectors, Gamers, and Investors?

Network Effects

The success of The Machines Arena as a multiplayer game relies heavily on its player base. The number of active players greatly impacts queue times and the matchmaking experience. Without a substantial player base, it becomes challenging for games to sustain a dedicated player community. In multiplayer games, players themselves become content, and without a sufficient number of players, the content available is limited. Launching a new IP from an unknown studio poses difficulties in achieving the desired network effects.

Saturated Market

The team-based and hero-based shooter genre has become highly established, with popular games like Valorant, CS:GO, and Overwatch already occupying significant market share. The release of Overwatch in 2016 occurred at an opportune time when the market was open for disruption, and Blizzard capitalized on this by executing extensive advertising campaigns. However, in the present landscape of 2023, breaking into the genre and gaining market share becomes vastly more challenging. The Machines Arena would need to offer significant improvements or innovations compared to existing games to attract a substantial audience.

While The Machines Arena does provide a different and fast-paced take on the genre, it still caters to the team-based and hero-based shooter audience. Considering the current competitive landscape, exploring the mobile route might be a viable path to gaining popularity for the game.

Esports

One aspect highlighted in playtest reviews is that The Machines Arena may lack the same depth of strategy found in its competitors. Games with limited strategic depth often have a skill ceiling, leaving little room for players to excel compared to others. This factor may pose challenges in establishing an esports scene around the game, both from a player and viewer perspective.

Who are The Machines Arena’s Competitors?

The Machines Arena faces competition from several prominent games in the team-based and hero-based shooter genres, many of which also have a significant presence in the esports scene. These competitors include:

Overwatch

Team Fortress 2

CS:GO (Counter-Strike: Global Offensive)

Valorant

Each of these games offers unique gameplay experiences and has garnered a dedicated player base and community. The Machines Arena must navigate this competitive landscape and differentiate itself to attract players and establish its own position within the genre.

What’s The Machines Arena’s Edge?

Compared to many other Web3 games, The Machines Arena has made significant progress in its development journey and has been conducting playtests since March 2021. This places the game closer to completion than most titles in the Web3 space, providing them with a potential advantage. Additionally, having access to the largest traditional gaming distribution channels gives them an opportunity to become one of the early popular Web3 games, reaching a broader audience.

Directive Games, being powered by the Ronin Network, gains a competitive advantage in terms of growth and visibility. This partnership enables the studio to align with Sky Mavis' comprehensive strategy of constructing a gaming ecosystem. Within this ecosystem, there will be a shared user base, community-owned protocols, and deep asset liquidity. Once the game is fully launched, these assets can serve as catalysts to propel its growth.

An early sign of the game's potential was evident when the Ronin x The Machines Arena partnership was announced. This announcement resulted in a significant increase in social media followers and Discord members for the game, indicating the growing interest and support it garnered.

The game's distinctive edge lies in its unique take on the team-based shooter genre, appealing to a different and more casual type of audience. The gameplay of The Machines Arena is characterized by a fast-paced experience that generally offers less strategic depth compared to its competitors. This feature requires less player investment in terms of time and complexity. As a result, it is believed that the game would perform well on the mobile platform, catering to the preferences of a broader player base.

How do they plan to monetize The Machines Arena?

The monetization strategy for The Machines Arena revolves around the in-game economy and the use of the Ronin Network. All items in the game will be earned through gameplay, with no NFT sales occurring outside of the game. Players have the option to mint their items on the Ronin Network, and in doing so, they will pay a fee in $RON, which serves as the primary revenue generation method for the team. According to the team's Discord messages, there are currently no concrete plans for the introduction of a game-specific token. However, it is worth noting that the team has not completely ruled out the possibility of exploring this option in the future.

Does this have the potential to reach the mass market?

Breaking into the highly saturated PC gaming market would require a higher level of innovation than what The Machines Arena currently offers. The game's unique top-down perspective caters to a more niche audience within the genre. However, considering the gameplay style it provides, the game appears to be better suited for the mobile platform. The mobile gaming landscape is less competitive in this particular genre, potentially opening doors for larger adoption among mobile audiences.

Writer’s Closing Remarks and Opinions

The hero-based and team-based shooter genres are highly competitive, featuring a variety of well-established titles that receive regular updates. As it currently stands, The Machines Arena is unable to rival the popularity of games like CS:GO, TF2, and Valorant. However, I recognize that the game is still in its alpha stage, allowing for potential changes and improvements. To better cater to the esports aspect of this game, I believe it would be beneficial to invest more in increasing its strategic depth. Additionally, incorporating more unique gameplay modes that distinguish it from Overwatch and TF2 will be necessary to create captivating experiences that can entice players away from these already-established titles.

Conversely, I do see more potential for The Machines Arena to find success in the mobile gaming scene in its current stage. The game's fast-paced gameplay, moderate level of strategic depth, lower player investment requirements, and the fact that the mobile market in this genre is less saturated all contribute to my belief that the game could thrive on this platform.

The studio's partnership with Sky Mavis is a significant advantage, placing them in a favorable position to leverage the considerable growth potential in the Web3 gaming arena. The timing couldn't be better for The Machines Arena, considering the recent release of Axie Infinity: Origins on mobile platforms. This development will serve as a stepping stone for Ronin's mobile rollout strategy, providing a promising path for the game's expansion into the mobile market.

Lastly, I do have reservations about the game's long-term revenue generation potential. Currently, the only apparent source of revenue is when players mint their gathered digital collectibles, allowing the studio to obtain $RON. However, before a sizable player base is established, it is unlikely that these numbers will reach a level capable of sustaining ongoing development efforts for the game.