The Great Collapse of Web3 Games: How Can the Industry Escape the "Cyber Graveyard"?

Recently, the South Korean game company Nexon officially launched the Web3 game "MapleStory N" based on the "MapleStory" IP, and its NXPC token has performed strongly, reigniting people's interest in the Web3 gaming sector. However, in stark contrast to this, since 2025, there has been a large-scale project stagnation phenomenon in the Web3 gaming field.

Several highly anticipated projects have announced the termination of their development, including the blockchain ARPG Tatsumeeko, the NFT game Nyan Heroes, and the blockchain FPS Blast Royale. Even the MMORPG project Ember Sword, which raised over $200 million, suddenly shut down, shocking the player community.

Why are Web3 games difficult to sustain?

Funding shortages are the main reason why most game developers choose to cease operations. For example, the developer of Ember Sword, Bright Star Studios, stated "unable to secure the funding needed to continue development." Similarly, the developer of Nyan Heroes, 9 Lives Interactive, also shut down the project due to failing to raise the funds necessary to complete the game.

In addition to funding issues, the deteriorating market environment and player attrition are also important factors contributing to the difficulty in sustaining blockchain gaming projects. According to a research report, by 2025, 17 Web3 games have already ceased operations, reflecting the severe challenges faced by the industry.

High mortality rate has always been a chronic problem in the gaming industry

The high failure rate of Web3 games is not a new phenomenon. Research shows that since the emergence of GameFi in 2017, the failure rate of projects in this field has remained high. According to statistics from CoinGecko, the average annual failure rate of Web3 games launched between 2018 and 2023 is as high as 80.8%. Another study even pointed out that 93% of Web3 games are already "dead," with an average lifespan of only 4 months.

It is worth noting that a high failure rate is not unique to Web3 games. The traditional gaming industry also faces similar challenges. Research shows that only 25% of successfully funded video game projects are completed on time. The mobile gaming sector is even more competitive, with a mortality rate as high as 83% within three years.

Stage financing model encounters worsening external environment

Game development often adopts a "phased financing" model, but this model is difficult to implement in the current Web3 gaming sector. According to statistics, the average token price of GameFi projects has fallen by 95% from historical highs, with most investment institutions suffering significant losses.

Airdrops and token incentives can attract users in the early stages of a project, but they are difficult to maintain for long-term retention. Once the incentives decrease, user churn can lead to a decline in token prices, triggering a negative cycle. Investment institutions lose interest in poorly performing blockchain gaming projects, further exacerbating the industry's difficulties.

Money Circulation, Running Away, and "Garbage" Manufacturers

Among the many games that have been shut down, some projects indeed failed to complete development due to misfortune. However, there are also teams that entered the industry with the aim of hype and making money, ultimately creating "cyber garbage" before running away.

Ember Sword is a typical case. The game attracted 35,000 players and sold NFT virtual land worth a total of $203 million. However, the game's graphics were simplistic and rough, leading to strong criticism from players. As the game closed, its token value nearly reached zero, causing significant losses for many players.

The Disillusionment of Player Ownership Commitment

Web3 games once promised to allow players to "truly own game assets", but the reality is disappointing. When a game ceases operations, players' NFTs and tokens basically lose their practical use, and their value plummets.

Even with the technical realization of asset interoperability, the significant differences between game types still make cross-platform asset transfer difficult. Therefore, the value of Web3 game assets is still highly dependent on the existence of the game ecosystem.

Both Being Footed by Game Purchases, Why Do Blockchain Game Investors Feel the Pain More Strongly?

In the traditional crowdfunding model for games, players invest relatively small amounts and often view it as supporting creativity. In the Web3 model, players directly purchase a large number of in-game assets or tokens, and when a project fails, they face real monetary loss, resulting in a stronger sense of loss and betrayal.

Where Should Web3 Games Go?

It is widely believed in the industry that Web3 game developers should first ensure the quality and playability of the game itself, rather than prematurely introducing tokens or NFTs for monetization. Developers need to return to the core elements of the game, such as characters, narrative, game experience, and community interaction, instead of overly pursuing the ownership and economic incentives brought by NFTs.

In the face of the current predicament, Web3 games need to return to value-driven and technological essence to break free, focusing on how to make games more interesting and engaging. Only by ensuring the quality of the games can we explore the new possibilities that Web3 technology brings to gaming.