The blockchain gaming industry has been booming in recent years, with promises of revolutionary gameplay and decentralized economies. However, a closer look reveals a concerning trend of discontinuations and cancellations among blockchain games. According to data from the Big Blockchain Game List, more than 30% of the games announced in 2023 have met this unfortunate fate. This article delves into the reasons behind these discontinuations and provides insights into the current state of the blockchain gaming industry.
The Numbers Game
As of January 2024, the Big Blockchain Game List showcases a total of 911 games. Among these, only 334 are currently live, while 577 are still in development. A significant 407 games, equivalent to 31% of all listed blockchain games, are now categorized as discontinued or abandoned. These figures indicate a concerning situation within the industry.
The most common reasons cited for the discontinuation of blockchain games are funding challenges and unfavorable market conditions resulting from the crypto winter. Many projects chose to silently fade away without making any formal announcements. However, some projects faced a prolonged period of inactivity or officially canceled their initiatives. Such reasons reflect the inherent risks and uncertainties associated with the blockchain gaming industry.
Multichain Integration
Notably, 17% of the discontinued games in the latter half of 2023 were labeled as multichain. This trend highlights the growing popularity of games integrating with two or more blockchains. When examining discontinuations based on single blockchains, Binance Smart Chain (BNB) and Polygon emerged as the leaders, accounting for 11% and 10% respectively. Ethereum, Sui, and Solana also made notable contributions at 6% each. Interesting shifts occurred compared to the first half of 2023, with Polygon surpassing Ethereum in the proportion of discontinued titles.
Among the discontinued games, one standout case was the highly anticipated game “Goals.” Despite securing a substantial $15 million in a seed round in 2022 and an additional $40 million in 2023, Goals decided to discontinue its blockchain integration. This example sheds light on the challenges faced even by well-funded projects in delivering their promises within the blockchain gaming industry.
In Q4 2023, the Big Blockchain Game List welcomed 65 new blockchain games. Remarkably, 11% of these games embraced the multichain approach, indicating a continued trend of integration with multiple blockchains. Among the games deploying on a single chain, significant growth was observed in Arbitrum (9%), followed closely by Optimism, Immutable, and Ethereum (8% each). StarkNet and Avalanche also witnessed growth at 6% each. These figures demonstrate that despite the discontinuations, the industry is still attracting new entrants and witnessing noteworthy advancements.
Industry Outlook
According to a survey conducted by the Blockchain Game Alliance, an interesting perspective emerged from the 526 participants from blockchain game companies. Approximately 19.8% of the respondents believe that the entry of traditional game studios into the web3 gaming domain will have the most positive impact on the industry in 2024. This suggests that partnerships and collaborations between established game studios and blockchain gaming projects may help overcome some of the challenges faced by the industry.
Optimism in the Face of Challenges
Despite the setbacks experienced in 2023, key industry figures remain optimistic about the future of blockchain games. Yat Siu, the executive chairman of Animoca Brands, sees the current period as a “cleanup year” for the blockchain gaming industry. In an interview with GamesBeat, Siu expressed his belief in a robust year ahead in 2024. This optimism suggests that stakeholders within the industry are determined to overcome obstacles and drive the growth of blockchain gaming.
The blockchain gaming industry has witnessed a considerable number of discontinuations and cancellations, highlighting the challenges and risks inherent in this nascent industry. However, amidst the setbacks, there are signs of growth and opportunities for collaboration. As the industry matures and established game studios enter the web3 gaming domain, the future holds the promise of innovation and true mainstream adoption. With careful analysis and strategic decision-making, the blockchain gaming industry can continue to evolve and shape the future of gaming.
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