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Open World For Blocplay Entertainment (PLAY:CNX)

|Includes: Blocplay Entertainment Inc. (SMPBF)
Summary

First to market in decentralized eSports, Streaming, PC and Mobile distribution and publishing.

Multiple near-term, recurring and diversified revenue streams.

Tokenized and crypto-enabled exchange platform that exponentially captures potential of microtransaction activity.

Complete cost reduction to solve industry inefficiency problem.

Focus industry targeting from Indie gaming and up.

Blocplay Entertainment is preparing a full frontal attack on the rapidly growing $108B video game industry targeting the end of this calendar year. Blocplay's differentiation is unparalleled via their tokenized distribution platform, Tokenplay. Focusing on a multi-channel approach to revenue generation via content creation, licensing, eSports and harnessing blockchain technology through the TokenPlay platform will enable Blocplay to capitalize on the blue sky potential of the mobile and PC gaming industry. Capturing this opportunity relies on one factor: Speed. And internally, the business is evolving at lightning pace.


Blocplay owns two subsidiaries: Stompy Bot (Publishing Studio - new website coming) and Tokenplay (Distribution Platform).

Strategic partnerships include:


Developments on the distribution and digital currency fronts are still ongoing and these will have major impacts on the course of business. More is to be expected in the very near term.

The business strategy:


Beginning tomorrow, the GDC in San Francisco is being held and Blocplay is there, busy at work. Heavy Gear Assault, their legacy title and cult revival game from the 90s is currently being geared up for full release on Steam, ESL Play and the corporate website and will be offered as a free-to-play game (with in-game purchases), which speaks volumes to the management teams commitment to building out their gaming community as fast as possible.


Dead Good media will be responsible for generating excitement around the game and giving it full exposure throughout the fractured gaming community. Simultaneously, Stompy’s long-awaited eSports initiative is set to finally deliver results as weekly HGA tournaments will be fully administered by ESL Gaming in the near term. PLAY’s developers will be ‘ESL-centric’ and heavily devoted to the eSports and competitive branches of their games, which will eventually be brought back to the Tokenplay platform once it is ready for release in the second half of this year. Their newly released and highly anticipated road map is available on their website.


The Jibe has been tasked with designing the full e-commerce user experience for the Tokenplay platform and app, which includes the front end user interface (UI). This first major deliverable was completed two weeks ahead of schedule and has fully lived up to management expectations. The UI has been loaded onto seven tablets and ready to be showcased in the coming days in multiple networking events. For a detailed first glance of the new app, please view the recently uploaded video on youtube.


Blocplay will be utilizing its expansive gaming network through its long-lasting relationships with their team of 50+ developers to pitch and sell TokenPlay to the Indie-gaming publishing/development market at the GDC and beyond. Acquiring and partnering with selective publishers plays a vital role in building a brand and sustainable ecosystem. A continuous stream of new content is vital, and in this regard, Blocplay is best positioned to succeed. In the days and weeks following the GDC, a steady inflow of content and new licensing is expected.


“If you build it, they will come.”

Blocplay’s innovation is providing many solutions to many problems within the industry, and the majors are taking notice. Tokenplay’s decentralized ledger enables the reduction of the industry standard top-line fees of 30%, down to a guided 7%. All in-game items bought via microtransaction will be decoupled and exchangeable throughout the community; they can even be competed for in competitive formats. Once a digital currency is decided upon/announced, gamers will also have the ability to sponsor and wager on their gaming idols and teams as they compete through the tokenized platform with ESL’s full support. Of course, the platform accepts payment and exchange methods via credit card and the traditional payment methods.


The proprietary payment gateway will be able to perform all transactions and exchange between fiat currencies and digital currencies alike. All aspects of Blocplay’s strategy is intended to grow this gaming community as quickly as possible, and this begins with content and ends with a fully modernized, cost efficient, innovative and user friendly experience for all ages.

It is estimated that each active online gaming account generates ~$18 USD per month in sales in the traditional industry format; we can only hypothesize how these numbers change through PLAY’s disruptive approach, which supports exponentially higher transactions through drastic reduction in fees where the burden does not fall onto either the gamer or the publisher. The only question that matters is this: Is TokenPlay ‘enough’ to attract an active gaming community? Our answer is yes.

The fundamental reason for this lies in our extremely high-profile and well-connected CEO, management team and newly formed initial board of advisers, along with the fact that this company’s core competency is that of an indie game publisher that knows the ropes and understands INTIMATELY what this market needs, desires and how to accomplish it. No other decentralized distributor or streaming platform is at its core, a publisher; and this cannot be disregarded. This integration into distribution, eSports and streaming is secured by the fact the indie gaming industry itself knows that Blocplay Entertainment and its subsidiary Stompy Bot, is a “friendly” and one of them.

Industry Disruption


Indie gaming is a perfectly competitive industry with extreme pressures placed on it by the oligopolistic AAA games market and monopolistic PC and Mobile distributors. The survival and success rates of the typical indie studio is in the single digit percentile. The hierarchy is able to preserve itself in this manner as the visibility and traction of these indie publishers is controlled by two aspects: distribution from the majors, and, an extremely high cost structure. Innovation, creativity and ingenuity are of abundance in the indie space. And so it is about time that the indie game industry is served an equally innovative and disruptive platform for them that is cost effective and provides very thoughtful and specific push to publishers who can now connect directly to a content and creativity starved gaming community.


Within the next few months, it is expected that five or more revenue streams will be activated with room for further expansion down the road as Tokenplay’s niche advances into the unknown. No competitor in either the centralized or decentralized distribution space can offer what Tokenplay offers. If decentralization benefits gamers and publishers and if communities are able to shift away from centralized market places, then our niche becomes the entire PC and Mobile distribution pie across the globe as AAA content will need to follow their crowds. This journey is just beginning and there is no better place to be in this industry. We are mis-priced directly ahead of severe blue-sky growth as the collective demand and supply for the company stock is pricing in complete failure and the inability to cash in on even one of the revenue streams.

Risk Factors

As with all micro-caps, significant risk factors are present. We are currently priced for failure and there is always reason for this. Currently, revenues are nil and despite very sufficient working capital, the lack of future revenues will continue to make this equity a going concern. Burn rate is approximately $100k/month and we await the annual financials and Q1 report to update the current liabilities. Management/advisers have all been awarded options at the 0.10 strike level as payment for services.  

Disclosure: I am/we are long SMPBF.

I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Additional disclosure: Additional disclosure: The author of this article is long. The author is not and has not accepted any form of compensation for writing this article. This article is 100% independent. This article expresses strong opinion and bias. Please do your own due diligence and arrive to your own conclusions. Due to the speculative nature of this stock, protect yourself at all costs. Risk Management is paramount and only invest what you can afford to lose. This piece is simply one opinion in a field of many, so treat it as such. Thank you for reading.