Animoca Brands Corporation Limited has entered into an amendment to its license agreement with Atari SA (XPAR:ATA) (NASDAQ: PONGF).
The amendment is a significant expansion of the partnership with Atari and grants Animoca the right to develop and distribute globally 15 classic Atari arcade games (including Asteroids, Pong, Centipede and Missile Command) and the right to develop and publish blockchain versions of these titles including integration of non-fungible tokens (NFTs).
Animoca will also be the non-exclusive distributor in Asia and exclusive provider of blockchain content globally for the Atari VCS console.
The amendment grants to Animoca the rights to distribute the games through the platforms of its subsidiaries and affiliated entities, principally Gamee and Quidd.
Animoca intends to launch the games on Gamee’s mobile, web, and desktop platforms, and the company will also offer digital collector assets from the games via its subsidiary Quidd.
World's first dedicated blockchain gaming game console
Animoca will be the exclusive blockchain gaming content provider for the Atari VCS console until September 30 2022, including the right to incorporate its preferred blockchain technology solutions (such as a crypto wallet), which will make the VCS the world's first dedicated blockchain gaming game console.
As consideration for the expanded licensing arrangements provided by the amendment, Animoca will pay to Atari a minimum guarantee against future revenues payable through the issuance of 18.7 million shares of the company priced at 21 cents per share.
The entirety of this license fee is recoupable against royalties paid to Atari from the revenue generated by the games.
As consideration for the exclusivity for Atari’s VCS game console, Animoca will pay a minimum guarantee against future revenues to Atari of US$320,000, payable before July 31 2021 at its discretion in cash or through the issuance of Animoca shares.
Integrating blockchain technology into video games
Atari CEO Frederic Chesnais said: “We are thrilled to strengthen our partnership with Animoca Brands, whose vision for the integration of blockchain technology into video games is perfectly aligned with ours.
“When we signed the initial agreement, we always envisaged to expand it to the most iconic games of the Atari catalog to turn them into blockchain games.
“Our ambition for the Atari VCS is to develop an ecosystem that gives users access to the largest number of tools for creation and entertainment.”
“Catapult history-making games into future”
Animoca co-founder and chairman Yat Siu said: “This significant expansion of our partnership with Atari allows Animoca Brands to leverage some of the greatest ever classic games into our blockchain strategy and on our popular platforms, including the hypercasual gaming platform Gamee and the digital collectibles platform Quidd.
“We are very excited at the opportunity to catapult these nostalgic, history-making games into the future.”