Blockchain Gaming Hit By High Rate Of Project Shutdowns In 2023

Over 30% of blockchain games launched in 2023 were discontinued, reflecting challenges in the crypto gaming sector.

Why are many blockchain games being discontinued?

Over 30% of the titles active in the blockchain gaming industry since 2021 are being discontinued, a trend heavily influenced by the challenging funding environment and market conditions during the crypto winter.

The Struggle Against Market Headwinds

According to the Big Blockchain Game List, as of January 2024, out of 911 games listed, 334 are live, and 577 are still in development. However, since the list's inception in 2021, a striking 31% of the 1,318 blockchain games have been categorized as discontinued or abandoned, which translates to 407 games. These projects faced termination due to various reasons, primarily funding challenges. The second half of 2023 alone saw 17% of the 162 discontinued games adopting a multichain approach. Discontinuations on individual blockchains were most prevalent on BNB (11%) and Polygon (10%), with Ethereum, Sui, and Solana also contributing to these statistics.

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407 Discontinued Blockchain Games since 2021

Polygon's rise in discontinued games in H1 of 2023 overshadowed Ethereum, and BNB consistently had the most discontinuations. The game "Goals," despite raising $55 million in funding over two years, discontinued its blockchain integration, exemplifying the sector's volatility.

New Entrants In The Blockchain Gaming Arena

In Q4 of 2023, the blockchain gaming landscape welcomed 65 new games. Of these, 11% followed the multichain model, while platforms like Arbitrum (9%), Optimism, Immutable, and Ethereum (8% each), StarkNet, and Avalanche (6% each) saw growth in single-chain deployments. A Blockchain Game Alliance survey with 526 industry participants highlighted that 19.8% see traditional game studios' entry into Web3 gaming as a key positive driver for 2024.

2024: A Year Of Potential Revival

Yat Siu, executive chairman of Animoca Brands, referred in an interview with GamesBeat to 2023 as a "cleanup year" and remains optimistic about the future of blockchain gaming. In his view, 2024 could be a year of robust growth and development for the industry, indicating potential recovery and innovation ahead.

Animoca Brands
Animoca Brands and its various subsidiaries develop and publish a broad portfolio of blockchain games, traditional games, and other products, many of which are based on popular global brands, such as Disney, WWE, Snoop Dogg, The Walking Dead, Power Rangers, MotoGP™, and Formula E. Animoca Brands is also a prolific investor with over 150 investments in NFT-related blockchain companies, including Axie Infinity, OpenSea, Dapper Labs (NBA Top Shot), Yield Guild Games, Alien Worlds, and Star Atlas.

This optimism suggests a promising outlook for blockchain gaming despite the challenges and setbacks experienced in the previous year.

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