Neon Machine Inc., the Seattle-based gaming studio behind the web3 extraction shooter Shrapnel, has taken a unique approach with the release of its early access demo, Shrapnel Training Exercises One (STX1), on the Epic Games Store.

In a departure from traditional game development practices, Shrapnel adopts a community-driven strategy, allowing players to actively participate in shaping the game's development until its full release in 2025. This marks a shift from conventional triple-A game launch schedules.

The community, with over 100,000 Discord members and 350,000 followers, plays a crucial role in the game's development. Shrapnel actively seeks feedback and votes from players on design and story decisions, creating a transparent and engaging game development process.

Shrapnel's STX1 

STX1 introduces playable characters at the maximum progression level, three guns, a grenade, and the first special Sigma ability, "Sigma Wave." Sigma, a mysterious resource in the Shrapnel universe, enhances gear and abilities. Further expansions in characters, weapons, and Sigma abilities are expected as the game progresses through early access.

Shrapnel aims to empower creators, allowing customization of characters, weapons, and in-game maps. Online leaderboards track player skill based on Sigma extraction, offering rewards from Shrapnel's community pool. The game encourages the creation and trade of in-game content, fostering a robust creator ecosystem with potential income opportunities for players.

Mark Long, Shrapnel's CEO, appreciates the community's feedback, stating, "Our execution of early access gameplay puts players right in the driver’s seat, helping us steer towards a blockbuster-quality triple-A first-person shooter game."

Set in a post-apocalyptic, dystopian world, Shrapnel expands its universe into comic books and a live-action short film, showcasing a rich lore. Developed by industry veterans with expertise in transmedia, virtual production, and blockchain production, Shrapnel recently secured $20 million in funding, totaling $37.5 million.

Despite success, Shrapnel recently faced a publicized dispute with a venture investor. The company confirmed Long as CEO, and the lawsuit is ongoing. The company is facing internal turmoil as six of its founders have filed a derivative lawsuit against the company's CEO, Cort Javarone. The legal action, recently lodged in Delaware's Court of Chancery, revolves around allegations of a breach of contract and raises concerns about the studio's financial stability.

At the heart of the dispute lies the founders' claim that Javarone, along with appointed directors, has refused to issue preferred shares, as contractually promised to investors during a $20 million Series A funding round in September 2021. Key investors involved include Griffin Gaming Partners II LP and Polychain Ventures II LP. These preferred shares are crucial for Neon Machine's operations and the full launch of their flagship web3 game Shrapnel.

As Shrapnel unfolds in a post-apocalyptic world across various media, including comic books and a live-action short film, its innovative approach and community involvement resonate with the principles of web3 gaming. Developed by industry veterans and backed by recent funding, Shrapnel's commitment to transparency and player engagement sets a standard for the evolving landscape of web3 gaming, shaping the future of online gaming experiences.