Gaming and digital entertainment company iCandy Interactive (ASX: ICI) has entered into a strategic partnership agreement with tech start-up Froyo Venture Lab to develop and commercialise Web 3.0 metaverse games, intellectual property (IP) and game arts.
Under the terms of the initial seven-year partnership, iCandy will develop a series of games and provide related support software and services for Froyo’s gaming arm Froyo Games, which recently received more than $8 million in seed funding from global Web 3.0 investors including Animoca Brands, Spartan Group, Mirana and BTC12 Capital.
Froyo Games will act as the publishing platform to market and commercialise the titles and non-fungible tokens (NFTs), with each game available on multiple platforms including mobile phones and desktop computers.
iCandy will also develop concept art, game art and IP that Froyo will use to convert into NFTs for commercialisation.
It is envisaged that a minimum of nine NFT or metaverse games titles and 12 NFT series will be commercialised and marketed by Froyo Games, with each consisting of at least 5,000 NFTs.
Froyo has agreed to share a portion of revenue generated with iCandy, with the arrangement booked on a project-by-project basis.
The first IP and concept art to be developed under the new partnership will be titled The League of Super Misfits and feature 10,000 computer-generated superhero gaming avatars which will be minted as NFTs.
The computer-generated art concept is popular on the NFT market, with some of the most successful projects often fetching well above $133,000 per NFT on resale.
The game will be developed by iCandy’s newly-established NFT studio Misfit Lab, manned by a select team from the company’s talent pool of over 600 fulltime game-making employees.
The League of Super Misfits is expected to be on the market by May and generate a minimum sale price of $800 per NFT for a total 10,000 NFTs.
Froyo has guaranteed a gross revenue of $4 million to iCandy for the commercial launch of the series.
It will be paid to iCandy within six months of artwork and source file handover to Froyo by next month.
The NFTs will be owned by Froyo prior to being marketed and sold by the company.