Blockchain gaming industry faces significant shakeout
According to the latest H2 2023 report from Big Blockchain Games List, the blockchain gaming industry is experiencing a significant shakeout. Data shows that out of 1,322 blockchain games ever listed, 407 (31%) have now ceased operations.
During the last six months, 162 games, or 15% of the total, have been discontinued. Of these, 50 were live games, and 112 were still in development. In the first half of 2023, Big Blockchain Games noted that 248 games were discontinued.
Multichain games hit hardest as closures increase
Multichain games, which could operate across various blockchain platforms, were hit the hardest. 28 games (17%) shut down in H2. The ‘unknown’ category, which includes games with undisclosed blockchain affiliations, saw 21 games (13%) cease operations. Single-chain games also saw closures, with BNB Chain losing 18 games (11%), Polygon 17 games (10%), Ethereum 10 games (6%), and both Sui and Solana each seeing 9 games (6%) go under.
A standout in the closures was “Blankos Block Party” by Mythical Games, a title that once featured on the Best Live list, noted Big Blockchain Games. The PC game ended in December 2023 but is now reportedly being revamped for a mobile release in 2024.
From play to pause: The reasons behind game shutdowns
The majority of these shutdowns were smaller ventures led by teams lacking experience and funding. While funding issues and market conditions were commonly cited reasons for game cancellations, most projects simply faded out without formal announcements, inferred as discontinued due to extended inactivity.
Blockchain gaming shows signs of growth amid closures
Despite this trend of discontinuation, the blockchain gaming sector shows signs of activity and growth in other areas. DappRadar data from the previous month highlighted a surge in both volumes and Unique Active Wallets, indicating a potential upswing. The increased engagement might be attributed to new game launches, seasonal events, or new features drawing a crowd.
The contrasting figures of game closures and spikes in user engagement depict a blockchain gaming segment that is rapidly evolving, with survival and success seemingly reserved for the adaptable and well-funded.
The evolving landscape of blockchain gaming: Survival for the adaptable
The closures in the blockchain gaming industry emphasize the importance of adaptability and sufficient funding for game developers. As the market becomes more competitive, smaller ventures with limited resources often struggle to survive. On the other hand, well-funded projects that can adapt to changing market conditions have a higher chance of success.
While the shakeout in the blockchain gaming industry may be disappointing for some, it also indicates a maturing market. Game developers and investors need to be selective and strategic in their choices, focusing on projects that have a strong value proposition, experienced teams, and sufficient funding. As the industry continues to evolve, those who can navigate the challenges and adapt to emerging trends will likely come out on top.
Analyst comment
Negative news: The blockchain gaming industry is experiencing a significant shakeout, with 31% of listed games ceasing operations. In the last six months, 162 games were discontinued. Smaller ventures lacking experience and funding were hit the hardest. However, there are signs of growth in other areas, indicating potential for survival and success for well-funded and adaptable projects.
Market analysis: The closures in the blockchain gaming industry highlight the importance of adaptability and funding. The market is becoming more competitive, making it challenging for smaller ventures to survive. Developers and investors should focus on projects with a strong value proposition, experienced teams, and sufficient funding. Despite the shakeout, the industry is maturing, and those who navigate the challenges and adapt to emerging trends will likely succeed.
