@August 3, 2024
Issue No. 114
CURATOR:
Welcome to this week's AtherXplorer, covering the latest in gaming, blockchain, and everything in between.
This week’s top picks include:
Artificial Intelligence
Apple Brings ‘Apple Intelligence’ with iOS 18.1 Dev Beta
The latest iOS 18.1 beta release provides an early preview of Apple's new AI system called Apple Intelligence. While revealed months ago, this is the first availability of features for developers to test. However, access is currently limited, requiring specific iPhone and iPad models with language and region set to U.S. English.
Siri gets new animation and text commands while writing tools allow proofreading, formatting, and summarizing text. The Mail app introduces email previews and smart replies. Focus Mode is enhanced with selective notifications. Many planned features are still absent due to ongoing development and bug fixing.
Apple detailed its approach, including on-device and server-based language models called AFM optimized for efficiency and privacy. The 3 billion parameter mobile model runs directly on iOS without private data usage. A larger server model also exists. Both were trained on external sources using Apple's “Responsible AI” principles to prevent bias and harm.
By prioritizing privacy and distributed processing, Apple differentiates itself from competitors reliant on large cloud systems. Faster performance benefits users but on-device capabilities are inherently limited. Apple's privacy emphasis aligns with consumer and regulatory priorities. The new models aim to enhance various applications, representing Apple's strategic focus on generative AI if integrated well to provide user value while respecting ethics.
Perplexity Unveils Revenue Sharing Plan for Publishers
Perplexity announced a revenue-sharing program with publishers, with its search results linking to partner websites eligible to receive a cut of Perplexity's advertising income. The first phase includes six partners like Time, Der Spiegel, and Automattic. This comes as Perplexity develops its "Keep Exploring" feature allowing brands to pay for follow-up questioning, with publishers tracking link citations and views. Partners also receive free access to analytics and Perplexity's enterprise search tools. The program aims to direct user traffic and compensation to content sources.
While advertising integration is still pending until late 2024, Perplexity establishes the foundation for long-term revenue sharing even as it launches monetization efforts. This represents a unique approach compared to existing tech giants. The program follows criticism around Perplexity incorrectly including websites that opted out and "hallucinating" citation links.
Other AI speech platforms like OpenAI have also taken steps to benefit publishers by prominently featuring and linking to their content. While OpenAI doesn't have a specific revenue-sharing model yet, it has focused on content partnerships and directing user traffic to publisher sites. These initiatives reflect ongoing efforts to build trust and mutually beneficial relationships between AI platforms and news/media organizations.
“Friend” Necklace Uses AI to Help Combat Loneliness
Avi Schiffmann is developing an AI companion called Friend that aims to go beyond productivity tools and be a constant presence users can talk to and rely on for support. Friend is an orb-shaped device with a microphone that communicates via text through a companion app. Schiffmann sees Friend filling a social role where one of a person's top five relationships could be with an AI. It would go everywhere with the user and have casual conversations about their life.
Schiffmann aims to ship the first Friend devices in January and views it primarily as a toy or companion rather than a replacement for human relationships. By pairing constant availability like a digital pet with deep conversational abilities, he hopes Friend can provide meaningful companionship. People have formed real relationships with AI chatbots and Schiffmann thinks Friend's portability could facilitate even closer bonds through shared experiences.
However, Friend is still very early in development and Schiffmann is focused on establishing credibility to support manufacturing partnerships. He also wants to explore how human-like AI should seem and what activities it can do independently of the user. In the long term, Schiffmann envisions Friend as the basis for a social network combining real and digital relationships.
Importantly, Schiffmann stresses that technology is not the focus but is meant to enhance digital companionship. As AI and hardware improve, Friend can provide a better companion experience. Schiffmann is convinced many will want their Friend to have constant social-emotional support wherever they go.
In Other AI News…
Gaming
Bungie Lays Off Over 200 Employees, Announces Plans For Deeper Integration With Sony
Bungie announced layoffs of over 200 people, representing 17% of its workforce, citing rising development costs, industry shifts, and economic conditions. The cuts affected all departments but most senior leadership. Bungie plans support for those laid off through severance, bonus, and health coverage. Despite these reductions, around 850 employees remain.
As part of being acquired by Sony, Bungie revealed plans to further integrate with PlayStation Studios. This includes migrating 12% of roles into Sony and collaborating to form a new studio developing one of Bungie's projects, an action game set in a new sci-fi universe. These measures helped save additional jobs from the layoffs.
CEO Pete Parsons explained how overexpansion and rapid growth collided with broader economic challenges. While recent Destiny 2 releases did well critically, reception was mixed and more development time was needed. Despite efforts to adjust course, expense outgrew revenue as goals were too ambitious. This represents another wave of industry cuts as companies adjust to current market conditions.
Embracer-Owned Plaion will Publish Skydance's Marvel 1943
Embracer subsidiary Plaion will publish the upcoming Marvel 1943: Rise of Hydra from developer Skydance Games, giving Plaion worldwide publishing rights. This represents a major partnership following Embracer's restructuring in 2023-2024 that led to layoffs, cancellations, and a failed $2 billion acquisition deal. While not recovering those losses, this Marvel license shows Embracer moving past cutbacks to focus on quality releases again. It's also notable as Skydance often self-publishes but has now partnered with Plaion for Marvel 1943.
Plaion CEO Klemens Kundratitz viewed the Skydance deal as affirming their goal to become a global publishing force after being impacted by Embracer's restructuring. Embracer CEO Lars Wingefors had also declared their future involves making and releasing good games after restructuring concluded. Marvel 1943 provides Plaion an opportunity to do just that with a high-profile license.
Later in 2024, Plaion will be merged into Middle-Earth Enterprises & Friends, a standalone Embracer entity overseeing franchises such as Metro, Tomb Raider, and Dead Island. This positions Middle-Earth Enterprises & Friends, and in turn, Plaion, to expand their publishing operations further.
Call of Duty’s Decrease in Skills-based Matchmaking Led to an 80% Increase in Player Quit Rate
In a white paper researching skills-based matchmaking, Activision found that decreasing its use significantly impacted the player base of Call of Duty: Modern Warfare 3. When matchmaking prioritized skills 50% less for some players, over 90% played the game less and the quit rate during matches rose 80%. While the top 10% of skilled players returned more, far fewer overall came back, shrinking the player pool. Without sufficient players, matches would become unfair. If skills-based matching was completely removed, Activision expected rapid population erosion within months.
By utilizing skills-based matchmaking, Activision saw benefits for 80-90% of players. They experienced better placement after matches, stuck with the game longer, and quit matches less frequently.
The findings demonstrate the importance of skills-based matching for retaining and satisfying the majority of the player population. Without it, Activision's research predicted a negative outcome for all as players failed to have competitive and enjoyable experiences.
In Other Gaming News…
Web3, Metaverse, and NFTs
SEC Retracts Binance Suit Request to Classify Altcoins as Securities
In its lawsuit against Binance, the SEC had claimed that tokens including Solana, Cardano, Polygon, Cosmos, The Sandbox, and others were securities. However, the SEC has now retracted its request for the court to rule on the status of these tokens. By removing this request, the SEC no longer asks the court to decide if the tokens are securities. This represents a shift in the SEC's stance on classifying certain cryptocurrencies.
The SEC's change in tack follows efforts by presidential candidates to appeal to pro-crypto voters. Former President Trump pledged to make the US a crypto leader and fire SEC Chief Gary Gensler as part of his campaign. Meanwhile, some Democratic representatives called for their party to take a more progressive approach to blockchain. Kamala Harris' advisers also reached out to crypto firms to improve ties.
Shifting views among regulators and political candidates indicate a growing acceptance of cryptocurrency in the US. The SEC backing away from demands that could classify major tokens as securities subject to its jurisdiction further reflects this evolving attitude toward digital assets.
Telegram Adds In-App Browser with Decentralized Web Support
Telegram has launched an in-app browser supporting decentralized websites called TON Sites, making web3 accessible to its 950 million users on both mobile and desktop. The browser allows seamless switching between messaging and website viewing. Telegram also introduced its Mini App store ahead of schedule. Popular games like Hamster Kombat and Catizen that use TON cryptocurrency have seen significant player adoption on Telegram.
Telegram users can now send payment "Stars" to friends as well as launch their web servers to make websites available on The Open Network. TON Sites and the Mini App Store advance Telegram's efforts to merge communication and digital entertainment. Popular apps like Hamster Kombat and Catizen have generated millions from in-app purchases and supported charitable causes like animal rescues.
The Open Network blockchain has also seen ongoing development, including a new gasless transaction smart wallet standard launched through a collaboration between TON Core and Tonkeeper. This reduces barriers to entry into TON's ecosystem and furthers the goal of broadening cryptocurrency access. These initiatives reflect Telegram's push to spread web3 integration and adoption through its vast existing user base.
Terra Blockchain Exploit Drains Over $4 Million in Tokens
The Terra blockchain halted on July 27th after an exploit drained over $4 million worth of tokens. According to security firm Beosin, around 60 million ASTRO tokens, 2.7 BTC, $3.5 million USDC, and $500,000 USDT were drained from bridged assets. To address the issue, validators halted the chain at a specific block height to apply an emergency patch. After resuming production, over 67% of validators had applied the fix.
The exploit took advantage of a known vulnerability in the IBC protocol related to timeouts in contract callbacks. IBC enables cross-chain communication and swaps. As a result of the attack, the price of ASTRO plummeted over 53% to a new all-time low while LUNA fell around 2.7%. TERC's collapse in mid-2022, caused by the failure of its UST stablecoin, has resulted in Terra focusing on the revived Terra 2.0 blockchain.
By draining bridged assets from multiple chains, the exploit reflected ongoing risks with cross-chain interoperability. Terra validators' coordination to quickly patch nodes and resume the network showed the benefits of a collaborative approach to reacting to security issues. However, the price impact emphasized lingering concerns from Terra's earlier troubles.
In Other Web3 & Metaverse News…
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