Web3 Games Face Mass Shutdowns, Industry in Crisis

Recently, several well-known Web3 game projects have announced their shutdowns, raising concerns in the industry about the prospects of this emerging field. Starting in 2025, there has been a phenomenon of large-scale project halts in the Web3 gaming sector, including projects that were highly anticipated such as Tatsumeeko, Nyan Heroes, and Blast Royale, all of which have announced the termination of their development. Even the MMORPG project Ember Sword, which raised over $200 million, suddenly closed, shocking players.

The reasons for this situation mainly include:

1. Funding difficulties. Most projects indicate that they are unable to secure the funding needed for continued development. According to statistics, the financing amount for Web3 game projects in the first quarter of 2025 fell by 68% year-on-year and by 71% quarter-on-quarter, showing a significant cooling in investment enthusiasm.

2. User churn. Many projects struggle to maintain long-term user engagement, and a large loss of players leads to a drop in token prices, creating a negative feedback loop.

3. Poor game quality. Some projects focus excessively on token economics, neglecting the playability and quality of the game itself.

4. Deterioration of the macro environment. The overall market is sluggish, and investor risk appetite is decreasing.

In fact, the gaming industry has always had a high failure rate. According to research, traditional mobile games have a death rate of up to 83% within three years. Web3 games are no exception, with data showing that 93% of Web3 games have already "died."

In the face of this dilemma, industry insiders generally believe that Web3 game developers should first ensure the quality and playability of the game itself, rather than introducing tokens or NFTs too early. In the future, Web3 games should return to value-driven and technological essence, making the games truly fun to play. Only in this way can they regain the confidence of players and investors.