Blockchain gaming industry sees shakeout as 31% of games shut down
A recent report from Big Blockchain Games List reveals that the blockchain gaming industry is undergoing a significant shakeout, with 31% of listed games now out of operation. Over the past six months, 162 games, or 15% of the total, have been discontinued. Of these, 50 were live games, while 112 were still in development. In the first half of 2023, a total of 248 games were discontinued.
Multichain games hit hardest by closures
Among the different types of blockchain games, multichain games that operate across various blockchain platforms experienced the highest closure rate. In H2, 28 multichain games (17%) shut down. The “unknown” category, which includes games with undisclosed blockchain affiliations, saw 21 games (13%) cease operations. Single-chain games also faced closures, with BNB Chain losing 18 games (11%), Polygon losing 17 games (10%), Ethereum losing 10 games (6%), and both Sui and Solana each seeing 9 games (6%) shut down.
Revamp for “Blankos Block Party”
One notable closure was “Blankos Block Party” by Mythical Games, which was previously featured on the Best Live list. Although the PC game ended in December 2023, it is reportedly being revamped for a mobile release in 2024.
Shutdowns mostly smaller ventures with funding issues
The majority of the shutdowns were smaller ventures led by teams lacking experience and funding. While funding issues and market conditions were commonly cited as reasons for game cancellations, many projects simply faded out without formal announcements, indicating discontinuation due to extended inactivity.
Growth potential amid closures
Despite the high rate of game closures, the blockchain gaming sector continues to show signs of activity and growth in other areas. DappRadar data from the previous month indicates a surge in both volumes and Unique Active Wallets, suggesting a potential upswing. This increased engagement may be attributed to new game launches, seasonal events, or new features that attract more users.
Hot Take: Blockchain gaming evolving amidst closures
The contrasting figures of game closures and spikes in user engagement depict a rapidly evolving blockchain gaming segment. Survival and success in this industry seem to be reserved for those who are adaptable and well-funded.
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