Shrapnel

Market position

Shrapnel is positioned within blockchain/web3 gaming as an attempt to bring AAA production quality to the category, and the company describes the game as award winning.

The studio positions Shrapnel as a store-quality, AAA-caliber first-person shooter combined with player ownership and tradability of in-game assets, contrasting it with earlier play-to-earn titles where lower-earning players access premium characters through arrangements the former CEO described as "sharecropping." Management stated an intent for Shrapnel to be the first store-quality production on Avalanche.

Technology

Shrapnel is a PC first-person extraction shooter with blockchain-backed item ownership. It was built on the Avalanche blockchain and issued the SHRAP token in April 2023; the studio's in-game economy includes a marketplace, a Printer crafting system and a Recycle Depot for converting items.

Go-to-market

Shrapnel is distributed directly to players as a free-to-play download on Steam, with an early access period beginning in December 2023 ahead of a planned full release. The studio also markets through its own site, an in-game marketplace and partnerships spanning blockchain technology, gameplay and creator tools.

PC players of competitive first-person shooters, reached primarily through Steam, along with participants in web3 gaming and digital-asset trading.

Geography

The studio is headquartered in Seattle, Washington, and describes partnerships spanning multiple regions.

History

The developer, Neon Machine, spun out of HBO in 2020, at which point 4D Factory Inc acquired a controlling stake. The company raised $10.5 million in 2021, including an $8 million investment from Griffin Gaming Partners and Polychain announced in November 2021 that carried an option to receive preferred non-voting shares following issuance of the game's token. A $7 million token sale followed in April 2022, bringing reported total fundraising to $17.5 million, and the SHRAP token was issued in April 2023. In November 2023, six co-founding directors, including then-CEO Mark Long, sued controlling shareholder Cort Javarone in Delaware's Court of Chancery after Long was removed as CEO; the company subsequently announced a $20 million Series A round. Shrapnel entered early access on Steam, with a full release planned for mid-2024.

Risks & controversies

In November 2023, six co-founding directors of Neon Machine, including former CEO Mark Long, filed suit in Delaware's Court of Chancery against controlling shareholder Cort Javarone, alleging he fired Long, installed himself as CEO, appointed two new directors, and refused to issue preferred shares due to investors Griffin Gaming Partners and Polychain. The complaint alleged the defendants were entrenching a board majority, exposing the company to tens of millions of dollars in liability, restricting operations and eliminating its ability to raise additional funds. Law360 reported that Javarone's 4D Factory Inc entered Chapter 11 bankruptcy in October 2023 owing $4.5 million and that he was accused of raiding Neon's funds. The company publicly stated it remained in control of development, funding and operations.