Web3 Gaming Projects are Failing to Sustain in The Market

Blockchain gaming is suffering as many of the projects have gone stagnant according to a new report. A new list called Big Blockchain Games List suggests 410 out of 1,322 crypto-based games were discontinued last year. Most of them had stopped development and no update was provided to the users.

Scarce Data For Interpretation

Some games including Blankos Block Party, Pixelcraft, Arcane Magic, and more made an official announcement to stop the projects. Unfavorable market conditions and low funding rates have caused the developers to make such decisions. The creator of Blankos Block Party, Mythical Games, launched the game on the Epic Games store in September 2022.

Many of the projects were discontinued as none of their associated accounts are existing. Some projects have severed ties from blockchain to make cryptoless games. Moreover, projects active on networks including Solana (SOL) and Ethereum (ETH) did not have the luck to sustain their positions.

The data presented in the report is not comprehensive given that several projects in it have been marked “unknown” in the context of the underlying blockchain. Furthermore, games in their initial development do not have significant on-chain data to interpret. It is possible they had not chosen a particular blockchain for development before going dark.

However, It is not just blockchain games. The presented scenario is in line with the broader gaming market. Data shows that nearly 43 percent of mainstream mobile games halted their development. What’s more, 83 percent of mobile gaming projects have failed in the past three years. Moreover, over 10K employees have been laid off in the gaming industry during 2023.

Nonetheless, data suggests some regions might still be powering Web3 gaming. The Coin Republic previously reported that the Asia-Pacific (APAC) region is likely to become a hub for blockchain gaming as per the report prepared by Web3 gaming community Game7. It caters to around 40 percent of development in the segment followed by North America, Europe, the Middle East, and Africa (EMEA).

One of the reasons blockchain gaming is failing to flourish could be its nonacceptance by traditional gamers. Mainstream gaming organizations like Ubisoft have tried to slip blockchain into one of its games dubbed Tom Clancy’s Ghost Recon Breakpoint. Their followers did not like it and the project was closed soon after.

Estimates show that Web3 gaming may substantially size up its strength in forthcoming years. It generated $4.6 Billion in 2022, which could reach $65.7 Billion by 2027. It is possible with the acceptance of blockchain technology within the mainstream gaming community.

Gamers believe games should be fun initially and blockchain-based assets like non-fungible tokens (NFTs) and crypto could take away the creativity and entertainment value from it. The report shows the number of gamers in the sector will reach 3.38 Billion globally by 2023, however, official numbers for the year are not out yet.

Anurag is working as a fundamental writer for The Coin Republic since 2021. He likes to exercise his curious muscles and research deep into a topic. Though he covers various aspects of the crypto industry, he is quite passionate about the Web3, NFTs, Gaming, and Metaverse, and envisions them as the future of the (digital) economy. A reader & writer at heart, he calls himself an “average guitar player” and a fun footballer.