Simply put
- Numerous blockchain games have shut down this year.
- Experts suggest that blockchain games struggle more publicly than traditional games do.
- There are concerns that the token systems pressure developers and shift focus away from actual game development.
Crypto gaming is facing some, well, awkward trends. Projects are being closed down or abandoned after experiencing years of hype and chaotic token sales. Many experts find this to be somewhat expected given the complexities of game development, particularly the flawed token systems that can put excessive strain on early projects.
It’s easy to say we anticipated this outcome, but honestly, some of the recently discontinued titles were once regarded as leading experiences in the blockchain space.
Take Deckdrop, for instance. It was once a popular choice among streamers like Dr. Disept. There was significant excitement surrounding it, but the studio collapsed in January after allegations against content creators surfaced. Then there was Solana’s Cat-Mech Shooter, Nyan Heroes, which garnered over 250,000 wish lists before shutting down in May when its funds ran out.
And, of course, there’s Reini: Lord of Light, Metal Core, Blast Royale, Mojo Brawl, Open Season, The Realm of Alria, and others. What’s more troubling is that The Walking Dead: Empire and Symbiosis Outbreak are set to close in the coming weeks. It’s not looking good for crypto games these days.
“Even in traditional gaming, 90% of games fail,” noted John Linden, the co-founder and CEO of Mythical Games, in a conversation. “This reflects the situation on the Web3 side as well. Similar failure rates exist—90%, in fact. The main issue is that public investment occurs much earlier in blockchain gaming compared to traditional settings.” He added that, with traditional game failures, there’s often less fuss until a game has been financially backed by players.
In the crypto industry, games commonly issue tokens and NFTs before they’re fully developed, often just ideas in progress, and refunds for such assets are rare. In the instance of Deckdrop, some players attempted to seek refunds through their banks after the studio went quiet, but success varied widely.
Nonetheless, the crypto gaming landscape is evolving, making it harder to attract investment dollars. “A few years back, launching a blockchain game with tokens and NFTs was simpler regarding funding and gaining user traction. Now, investors are much more discerning,” remarked someone from Nexpace.
The hype has waned considerably, leading to many crypto games not meeting expectations. The challenge in securing funding has contributed to the closure of various blockchain titles.
Linden, whose studio has brought blockchain games like FIFA and NFL titles to market, reiterated that Web3 games seem to overlook foundational qualities in favor of hype and speculation.
John Smedley, a game development veteran known for creating Everquest and Planet Side, chimed in, pointing out that many crypto games are failing to cater to traditional gamers, thus limiting their potential audience.
Looking ahead, there’s a new crypto shooter about to launch. Interestingly, it features a marketplace that accommodates both traditional and crypto gamers, offering items for either traditional in-game purchases or NFTs.
Similarly, titles from The Grid, one of the more successful blockchain games recently, are made compatible with non-crypto-friendly platforms like Steam, PlayStation, and Xbox, which could help extend their audience reach.
It’s notable that these titles have had years of undisclosed development, a stark contrast to those that have been announced and rushed to market with tokenized assets before being ready for play.
Linden shared, “Game development takes time. One of my friends was involved in creating the Grand Theft Auto series.” He noted that Deckdrop let players access the game in its pre-alpha stage for $50, but after nearly two years of development, it closed down—only a fraction of the time compared to how long it often takes to create something of real quality.
Kryptirooks, co-founder of Crypto Game Studio, expressed that the pressure from having a crypto token during production for their game, Openseason, was immense. He worked long hours, responding to investors’ demands to increase their investment returns while juggling the complexities of game development alongside token management. Now, they’ve paused development due to funding issues, pivoting instead towards a simpler game design without token integration.
“There were so many expectations from the community about the tokens. People were constantly hyping them, and it often became overwhelming,” he admitted, “Dealing with tokenomics was a real challenge.”
Interestingly, Linden, despite being involved with a successful crypto game, mentioned that smaller tokens tied to lesser-known projects might not make sense. He believes that as the demand shifts, maintaining those tokens could become unfeasible. Thus, at Mythical Games, they don’t produce “single game tokens.” Instead, they aim to roll out all assets before the game’s launch.
Conversely, Crypticlux is optimistic, suggesting that the future lies in more tokens, with last year’s launchpad, pump.fun, marking a significant turning point.
“When 18,000 tokens get released, spreading out the liquidity every day leads to less attention for each individual token,” he explained. “It really did open a Pandora’s box.”
Pump.Fun has emerged as a popular Solana meme coin launchpad, allowing users to create tokens rapidly and easily. Since its inception in January 2024, it’s played a role in generating over 11.8 million tokens, and its rivals are producing thousands more daily.
Some traders have voiced their concerns about the saturation of the market with meme coins, claiming it could hurt the crypto industry. Yet this phenomenon shows little sign of slowing down.
Kryptirooks commented that the trends associated with these launchpads not only flood the market but also shorten investor attention spans, similar to the quick trends seen on platforms like TikTok. He believes this is causing challenges for token sustainability in gaming.
“The attention spans have shrunk, especially as people chase quick market cycles,” he stated.
