Welcome back,

It’s Edition #23 of the SEG3 Report! The Olympics have concluded, and the Paralympics are just around the corner. NFL preseason has begun, and WhatsApp groups are buzzing with activity as people try to plan Fantasy Football Drafts. And of course, the Premier League season is officially underway.

This week, we explore yet another video game serving as the source material for a Hollywood reboot, as Skydance attaches a writer to Sega’s Eternal Champions. Roblox introduces a major update to the way creators' experiences are discovered, with a paid search function. The Athletic partners with eBay on a sports memorabilia content vertical.

Contents: Edition #23

• Sega’s Eternal Champions is coming to the big screen

• Roblox introduces search advertising for discovery

• The Athletic launches a dedicated trading card and sports memorabilia vertical

Let’s dive in…

Sega’s Eternal Champions is coming to the big screen

Skydance have selected Derek Connolly to write a live-action adaptation of Sega's 1993 fighting game Eternal Champions. 

The game, originally developed for the Sega Genesis, revolves around a being called the Eternal Champion who brings together souls of humans destined for greatness but who died prematurely (More on this pretty wild game, here). These individuals must compete in a tournament, with the winner earning the chance to return to life and save Earth.

The Eternal Champions game was notable for its diverse roster of characters, which included figures from different time periods and backgrounds, such as a Syrian bounty hunter from 2030 AD and a cat burglar from the 1920s. This rich character diversity contributed to the game's acclaim and sets up the potential for a compelling cinematic adaptation. 

Connolly, who gained recognition with Safety Not Guaranteed, has established himself as a prominent screenwriter in the franchise world, with credits on major films like Jurassic World, Star Wars: The Rise of Skywalker, and Detective Pikachu. His current projects include work on a live-action adaptation of The Legend of Zelda for Sony and Nintendo, and a Transformers/G.I. Joe crossover film for Paramount. His involvement in Eternal Champions suggests a strong potential for another successful video game-to-film adaptation.

Why you should care

Add it to the list, folks! 

The recent surge in adaptations of video games into films and TV series continues to  generate excitement and discussion. This trend reflects a growing recognition of the potential for storytelling within video games, as well as a shift in how these adaptations are approached by filmmakers and studios.

While we know of examples in the emerging genre from Tomb Raider to Detective Pikachu, and Halo to The Last of Us, we thought to highlight some notable and relevant examples of transmedia adaptations: 

Mortal Kombat: The film series has had a tumultuous history marked by both successes and failures. The franchise began with the release of the original Mortal Kombat film in 1995, which became a cultural phenomenon. This film was notable as one of the first successful video game adaptations, grossing over $122 million worldwide against a budget of $18 million. However, its sequel, Mortal Kombat: Annihilation (1997), was critically panned and failed to capture the same audience, leading to a long hiatus for the franchise in film.

After nearly two decades of development struggles, the franchise was rebooted with Mortal Kombat (2021). The 2021 film received mixed reviews. Despite this, it performed well at the box office, grossing $84.4 million against a $55 million budget and became HBO Max's most successful film launch at the time. Following the commercial success of the 2021 film, a sequel titled Mortal Kombat 2 is in the works, scheduled for release in 2025. 

Sonic the Hedgehog: Perhaps another example in which Sega are looking to follow, the films based on this franchise have also been well-received, indicating a growing acceptance of video game adaptations when they are crafted with care and respect for the original content. 

The Sonic movies have successfully blended nostalgia with modern storytelling techniques, appealing to both older fans and new audiences. These elements of nostalgia may be especially relevant with Eternal Champions, notable due to the early 90’s original release date.

Super Mario Bros. Movie: The new golden standard. Released in 2023, this film became the highest-grossing video game adaptation, earning $1.36 billion globally. Its broad appeal stems from the iconic status of the Mario franchise, making it accessible to audiences beyond traditional gamers. This success indicates a shift towards creating adaptations that cater to a wider demographic while still honouring the original material.

The success of these big budget video game adaptations stems from a combination of quality storytelling, involvement of original creators, and a changing perception of video games as a legitimate form of narrative art. Skydance and Sega hope they are on to a new winner with Derek Connelly and a game title that many have forgotten about getting a renewed life. 

Roblox adds search advertising

As usual, former SEG3 Los Angeles speaker David Taylor shared his wisdom on this evolution for Roblox marketing.

Roblox has introduced a new advertising feature that mirrors Google's successful sponsored search model, which allows developers and brands to bid on specific keywords to have their games or experiences prominently displayed at the top of search results. This system, much like Google's, operates on an auction basis, where the highest bidder secures the top spot. 

Previously, visibility was somewhat random, often determined by features like the "Daily Picks" section, but now developers can actively influence their game's visibility by investing in these targeted ads. This change means that games with better monetisation strategies will have the upper hand, as they can reinvest more into acquiring new players through search ads, which could drastically increase their popularity and player engagement.

There is every likelihood that the introduction of search ads on Roblox will change the landscape of how games gain popularity and how brands reach their target audience. 

Why you should care

This fundamentally alters the marketing strategies on Roblox, turning it into a more sophisticated and competitive environment. Roblox has been built on a community of players and creators that can be independent, and sometimes even individuals. The discovery of experiences was for the most part a meritocracy. This dynamic will now be challenged.

This update shifts the dynamics of visibility on the platform, giving a substantial advantage to those who can afford to invest in these search ads, thereby making monetization strategies more critical than ever for success on Roblox. (Read: established studios, brands, and valuable IP owners gain an advantage.)

For brands, this offers a more effective and targeted way to reach players genuinely interested in their experiences, moving beyond the traditional method of offering free cosmetic items to attract users. For Roblox, this offers a new and easily understood means to monetise, which shareholders are likely to love. 

Clearly, this new advertising tool will lead to more strategic and financially driven decisions within the Roblox ecosystem, encouraging a shift in how developers and brands approach player acquisition and engagement on the platform.

The Athletic launches a dedicated trading card and sports memorabilia vertical

The Athletic has launched a new vertical dedicated to sports memorabilia and trading cards, in partnership with eBay. Through this collaboration, The Athletic will feature shoppable eBay trading cards and memorabilia within its content, while also benefiting from additional affiliate and advertising revenue. This move aligns with The New York Times' strategy to diversify its business beyond traditional news.

The Athletic aims to tap into this expanding audience, offering content that helps both newcomers and seasoned collectors navigate the memorabilia market. This includes covering industry news, such as legal battles between major players like Panini and Fanatics, and providing expert analysis to guide purchase decisions.

The vertical will be managed by a small team of editors and freelancers, with plans to expand its reach through social media and other channels. The initiative is seen as a response to the growing demand for authoritative coverage in the sports collectibles space, with The Athletic hoping to attract both veteran collectors and those new to the hobby.

Why you should care

The new vertical will cater to the growing interest in sports collectibles, which has surged since the pandemic, and is now a market projected to reach $227 billion by 2032. This resurgence is fuelled by nostalgia, increased interest in professional sports, and the further monetisation of the industry through legalised sports gambling in the US. 

This is also a win for the New York Times’ - the owner of The Athletic - and their efforts to land more brand partnerships for the platform. It is a strong and organic content partnership with eBay, and may become a model for integrated branded content that subscription media platforms try to do more. 

In other news…

A quick round-up of other stories we found interesting this week.

• Ari Emanuel vs. Casey Wasserman: Behind the Poaching of Billie Eilish

• Sky UK, Guild Esports, and Umi Games launch Sky City FFA on Fortnite

• USDC to embrace tap-and-go payments after Apple opens up NFC

Working on anything cool, or have a press release you would like us to cover? Send it in for the chance for it to be covered in next week’s edition!