Moon Beast Productions, an independent game studio founded by industry veterans Phil Shenk, Peter Hu, and Erich Schaefer, has secured $4.5 million in seed funding.
Led by 1AM Gaming, the round is joined by 1UP Ventures, The Mini Fund, Overwolf, Versus Ventures, and a network of notable angel investors that includes Gaingels, Cohh Carnage, and Mark Pincus.
This funding, which arrived back in June, marks a critical moment for the studio, providing resources to expand the team while maintaining the lean, focused approach that has defined Moon Beast Productions since its inception. The investment will accelerate the studio’s development of an innovative action role-playing game (ARPG) that challenges conventional design paradigms.
“In today’s challenging funding environment, we’re incredibly fortunate to have investors who understand our vision,” said Peter Hu, president and cofounder, in a statement. “Our approach has always been about working smarter, not just harder. We’re building reusable, data-driven systems that allow us to iterate rapidly and create more with less.”
The studio is acutely aware of the challenges facing independent game developers. While big-budget triple-A titles dominate the market, players are increasingly hungry for fresh, innovative experiences that break away from formulaic design. Moon Beast sees this as an opportunity to offer something genuinely different. The company’s game is at its first playable stage where the company can get feedback.
“We’ve never been content to follow the crowd,” said Phil Shenk, CEO of Moon Beast Productions, in a statement. “Throughout our careers, we’ve always pushed to redefine genres. We were there at the start, helping to invent ARPGs with Diablo and Diablo II. In the years following, from Hellgate: London to Torchlight, and Marvel Heroes Online, we’ve consistently sought to expand what players expect from the genre.”
An ARPG for all
Shenk isn’t yet revealing the name or details of the game. But the upcoming project is a testament to this philosophy. Looking back to the pivotal moment after Diablo II, the team is exploring an alternate trajectory for action RPGs—one that was impossible with the technology of over two decades ago. Their new game aims to reimagine what the genre could have become if ARPG designs had taken a different path.
“A lot of folks that are having trouble getting their A round or B round, and C rounds are tough too. And so we were fortunate that we found 1am Gaming and others that believed in us, and they want to help us make it happen,” Shenk said in an interview with GamesBeat.
He added, “We want to get our name out there and let people know that we’re still alive and we’re cranking away and we’re excited about what we’re building. And then that’ll lead into next year, when we’re really looking forward to be able to tell people what we’re working on.”
The pitch was appealing to some investors in part because it wasn’t focused on the most hardcore players, even though it’s an action RPG, Shenk said.
“It’s an ARPG that everyone can play,” he said.
Leveraging advanced procedural generation and dynamic world technologies, Moon Beast is creating a game world that offers truly unique experiences with each playthrough. The goal is an expansive, open-ended design that provides players with unprecedented freedom and replayability.
“For the past 20 years, we’ve dreamed of ARPG gameplay in more open, dynamic worlds,” said Erich Schaefer, chief creative officer, in a statement. “We finally have the technological capabilities and decades of design experience to bring those visions to life. We’re going back to what made those early Diablo games feel so awesome but taking them in some cool, fresh directions.”
A key innovation is the studio’s commitment to user-generated content (UGC). “Our world technology is inherently dynamic, which makes it incredibly easy for players to create and integrate their own content,” Husaid. “We’re building in-game tools that allow players to not just mod, but potentially create entirely new game modes using our robust, client-server ARPG systems.”
Avner Florenthal, vice president of business development at Overwolf, in a statement. “We are thrilled by Moon Beast’s vision for player creativity. Their approach to UGC has the potential to extend the game’s life and even spark entirely new gameplay experiences.”
Shenk elaborated, “Think about how MOBAs emerged from Warcraft III mods. Our UGC tools could similarly unlock entirely new genres built on ARPG gameplay and systems.”
Overwolf is focused on user-generated content and modding. Shenk believes the game will benefit from embracing UGC and the desire for self expression.
Lead investor Gregory Milken from 1AM Gaming shared his perspective in a statement.
“What sets Moon Beast apart is their thoughtful approach,” Milken said. “They’re not chasing trends but expertly crafting a unique experience that could genuinely expand the ARPG genre and shake up the current formula. We are big believers in the team and great fans of their genre-defining past works.”
The studio plans to reveal more details about their new project early in 2025.
“I think fans of our original Diablo games will find a lot to love,” Schaefer said, “but I’m also super excited about the new ways we’re shaking it up. It’s exciting to be able to take a fresh approach to the genre.”
A long journey
It’s been a journey.
“We were very small for a long time, and build a lot of the core tech. We experimented with a couple game design ideas, you know, all related to ARPGs. And we’ve always had this idea of including creators in our plans. But when Erich came on board, we we became very focused on the core gameplay, the core ARPG, and trying to do as much as we can with a small team, and wanting to stay independent and maintain our creative control,” Shenk said. “This gets back to our roots like Diablo.”
But it’s not going to be a clone of Diablo, which team members spearheaded while at Blizzard. But Moon Beast Productions is a startup and it’s far smaller than Blizzard.
Shenk said the team operates with a focus on quality as much as it can. Team members find the fun, and they have a lot of experience building games. But they remain practical and don’t try to bite off more than they can chew.
“We say ,’Not today.’ Let’s keep things in scope so that we can have a good chance of delivering something that players will like,” he said.
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