The Great Collapse of Web3 Games: Finding a Way Out of the "Cyber Graveyard"

Recently, some well-known Web3 game projects have announced their shutdowns, raising concerns in the industry about the future of blockchain gaming. The launch of "MapleStory N" has sparked some expectations for a GameFi revival, but more projects are falling into difficulties.

Since 2025, there has been a phenomenon of large-scale project stagnation in the Web3 gaming sector. Several highly anticipated projects, including Tatsumeeko, Nyan Heroes, Blast Royale, and Rumble Kong League, have announced the termination of their development. Even Ember Sword, which raised over $200 million, suddenly shut down, shocking players.

Why are Web3 games difficult to sustain?

Insufficient funding is the main reason for the shutdown of most projects. Taking Ember Sword as an example, its developers stated that "they could not obtain the funding required to continue development." Although Nyan Heroes has attracted a large number of players, it has still been unable to raise the funds needed to complete the game.

In addition to funding issues, the deterioration of the market environment and the loss of players are also important factors leading to the suspension of projects. According to statistics, 17 Web3 games had already ceased operations by 2025, reflecting the difficulties faced by the industry.

High mortality rate has always been a persistent problem in the gaming industry

In fact, the high failure rate of Web3 games is not a new phenomenon. Data shows that since the emergence of GameFi in 2017, the failure rate in this field has been consistently high. Approximately 80.8% of Web3 games launched between 2018 and 2023 have failed.

However, the high failure rate is not unique to blockchain games. The project failure rate in the traditional gaming industry is also very high, especially in the mobile gaming sector. Research shows that the mortality rate of mobile games within three years is as high as 83%, with 43% of games even failing during the development stage.

The gaming industry faces issues such as development delays and budget overruns due to the need for continuous innovation and high-quality delivery, which ultimately leads to project failures.

Stage financing model meets deteriorating external environment

Game development typically adopts a "staged financing" model, but this model is difficult to implement in the current blockchain gaming sector. Data shows that the average token price of GameFi projects has dropped 95% from historical highs, resulting in significant losses for most investment institutions.

Airdrops and token incentives can quickly attract users, but they are difficult to maintain for long-term retention. Once the incentives decrease, user attrition can lead to a drop in token prices, entering a negative cycle. Meanwhile, investment institutions' enthusiasm for this field has also waned.

Money Circulation, Running Away, and "Trash" Makers

In failed projects, some developers show sincerity but have bad luck, while others enter the industry with the intention of speculation and making money. Ember Sword is a typical case, as its game graphics are rough and simple, far below player expectations, and it has been accused of being a scam.

With Ember Sword permanently shutting down, its tokens are now nearly worthless, causing significant losses for many players. This situation not only harms the interests of investors but also exacerbates the trust crisis in the industry.

The Disillusionment of Player Ownership Commitment

Web3 games once promised to allow players to truly own game assets, but in reality, these assets still heavily rely on centralized servers and developer support. When a game shuts down, NFTs and tokens often lose their practical use and value.

Even with interoperability achieved at the technical level, the huge differences between game types make it difficult for assets to flow across platforms. The asset systems of different games are often incompatible, and developers lack the motivation to support external assets.

Both Paying for Games, Why Do Blockchain Game Investors Feel the Pain More Intensely?

In the traditional crowdfunding game model, players invest relatively small amounts and often view it as support for creativity. In the Web3 model, players directly invest large sums of money to purchase in-game assets or tokens, facing real monetary loss when a project fails, which intensifies the feeling of loss.

Where Should Web3 Games Go?

The industry generally believes that Web3 game developers should first ensure the quality and playability of the game itself, rather than introducing tokens or NFTs too early. Developers need to return to the core elements of the game, such as characters, narrative, gameplay experience, and community interaction.

To break free from difficulties, Web3 games need to return to value-driven and technological essence, making the games truly enjoyable. Only by solving core issues such as game quality, player retention, and fund allocation can we overcome the current predicament.