Mobile game publisher Zynga has officially parted ways with its Web3 game, Sugartown, selling all related products and assets to Web3 developer D20 Labs. This development marks Zynga’s exit from the Web3 gaming space, a sector it initially entered with much enthusiasm. Over the weekend, Zynga announced this strategic move, handing over the reins of Sugartown to D20 Labs, a company formed by the same team that originally developed the game under Zynga’s Web3 division.
Zynga introduced Sugartown last year, positioning itself as a pioneer among major mobile studios embracing Web3 and blockchain technologies for gaming. At the time, Zynga’s entry into the Web3 space was seen as a bold move, as it joined other major players like Sega and Square Enix in exploring the potential of blockchain-based gaming. The company pitched Sugartown as a future leader in promoting trust, transparency, and accessibility within the genre, reflecting a broader industry trend towards integrating blockchain with gaming.
The transition of Sugartown to D20 Labs represents more than just a change in ownership; it signifies a continuation of the original vision set forth by Zynga’s Web3 team. D20 Labs, as highlighted by its marketing lead, consists entirely of former members of Zynga’s Web3 department, including key figures such as Matt Wolf and Tommy Ngo. Wolf, who served as the department’s Vice President, and Ngo, the former General Manager, now lead D20 Labs with the intention of carrying forward the project they started.
D20 Labs disclosed that the acquisition of Sugartown was a result of months of strategic planning and negotiations. The company emphasized its commitment to continuing the original team’s mission of “creating the future of rewarded play.” The studio expressed excitement about the possibilities this new chapter presents, describing it as a historic moment with limitless potential for innovation and growth in the Web3 gaming landscape.
The decision by Zynga to sell Sugartown and disband its Web3 department raises questions about the company’s future involvement in blockchain technology. The reasons behind Zynga’s decision to divest from Web3 remain unclear, leaving industry observers to speculate whether the company has abandoned its interest in blockchain gaming altogether. Zynga’s move comes amid a broader industry trend where many studios that initially embraced Web3 and blockchain have since retreated or paused their efforts, possibly due to challenges in market adoption, regulatory uncertainty, or shifting corporate priorities.
However, not all major gaming companies have stepped back from blockchain. Reports suggest that Sega, for example, still maintains some level of interest in exploring the technology, indicating that the potential of Web3 in gaming has not been entirely dismissed by the industry. Despite the mixed reactions and varying degrees of commitment from different studios, the evolution of Web3 gaming continues to unfold, with developers like D20 Labs stepping up to explore its future possibilities.
In summary, Zynga’s sale of Sugartown to D20 Labs signals a significant shift in the company’s strategy, as it exits the Web3 gaming space it once aimed to lead. The former Zynga Web3 team, now operating as D20 Labs, remains dedicated to advancing the game and exploring the potential of Web3 technology in gaming. As the industry watches closely, the future of Web3 gaming continues to evolve, driven by new players and shifting dynamics.