Web3 game publisher Fenix Games has raised $150 million in funding to acquire, invest and distribute blockchain games. The fund will be used to create a game publishing company specifically for the integration of blockchain games.
Fenix Games’ latest funding round saw participation from investors including Phoenix Group and Dubai-based venture capital firm Cypher Capital, reported Jinse local news media. Chris Ko, CEO and co-founder of Fenix Games, who previously ran Mythical Games, considered Fenix Games “like a venture capital fund” to power the next generation of blockchain games.
Sharing details in the post-funding game plan, Ko said:
“We’re actually going to start with a huge capital base to invest in these (next-gen game) studios. We are also looking to use our balance sheet to acquire a bunch of existing games in the web2 space to build a portfolio.
Ko also pointed out that the market for blockchain games does not exist as it did for traditional video games such as game consoles and mobile games. Fenix Games’ strategy going forward is to grow the game ecosystem through publishing initiatives.
GameFi’s ever-evolving model could make “today’s AAA game companies look like peanuts,” said Jack O’Holleran, CEO of Skale, an Ethereum-native multi-chain network that powers the Web3 games.
Finding a sustainable GameFi model remains a challenge, however. User experience ranks among the top challenges in the industry due to high gas costs and the technical complexity of buying, owning and trading non-fungible tokens (NFT).