The Great Collapse of Web3 Games: Breaking Free from the "Cyber Cemetery" Dilemma

Recently, several well-known Web3 gaming projects have announced their shutdowns, raising concerns in the industry about the prospects of the GameFi sector. The success of "MapleStory N" seems to bring a glimmer of hope to this long-dormant field, but more projects are facing a survival crisis.

Since 2025, there has been a large-scale project halt phenomenon in the Web3 gaming field. Once high-profile projects such as Tatsumeeko, Nyan Heroes, and Blast Royale have all announced the termination of development. Even Ember Sword, which raised over $200 million, suddenly shut down, shocking players.

Reasons why Web3 games are difficult to sustain

Lack of funding is the direct reason for the shutdown of most projects. Ember Sword's developer stated, "unable to secure the funding needed to continue development." Nyan Heroes attracted a large number of players, but still failed to raise enough funds to complete development.

In addition to funding issues, the deterioration of the market environment and player attrition are also important factors. According to statistics, 17 Web3 games had already ceased operations by 2025, reflecting the difficulties facing the entire industry.

The high failure rate that is common in the gaming industry.

In fact, the high failure rate has always been a chronic issue in the entire gaming industry, not unique to Web3 games. Research shows that since 2017, the annual failure rate of Web3 games has reached as high as 80.8%. The traditional gaming sector also faces high elimination rates, with mobile games having a death rate of up to 83% within three years.

The high failure rate in the gaming industry stems from its continuous demand for innovation and high quality, which can easily lead to issues such as development delays and budget overruns.

The financing model of blockchain games faces challenges

Game development usually adopts a phased financing model, but this model is difficult to be effective in the current blockchain gaming sector. The token prices of blockchain gaming projects have generally plummeted, weakening investor confidence.

The initial strategy of attracting users through airdrops and token incentives is difficult to maintain for long-term retention. User churn leads to a decline in token prices, entering a negative cycle. Investment institutions are losing interest in poorly performing blockchain game projects, and in the first quarter of 2025, Web3 game financing decreased by 68% year-on-year.

Player asset ownership commitments are difficult to fulfill.

Web3 games have promised to allow players to truly own game assets, but in reality, these assets still heavily rely on centralized servers. After a game is shut down, players' NFTs and tokens often lose their actual usefulness and value.

Even if interoperability is achieved at the technical level, the huge differences between game genres make it difficult to transfer assets across platforms. For developers, making NFT assets compatible with other games will significantly increase the difficulty and cost of development.

Future Development Directions of Web3 Games

Industry insiders generally believe that Web3 game developers should prioritize the quality and playability of the game itself, rather than prematurely introducing tokens or NFTs. An excessive focus on the ownership and economic incentives brought by NFTs often overlooks the core elements of the game.

To overcome difficulties, Web3 games need to return to value-driven and technological essence, focusing on enhancing the gaming experience. Only by creating truly enjoyable games can they attract and retain players, achieving long-term sustainable development.