Web3 Gaming: why 30% of Blockchain Games are abandoned

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Web3 Gaming: why 30% of Blockchain Games are abandoned
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The rise of blockchain technology has paved the way for innovative applications in various industries, including gaming. Blockchain games, also known as Web3 games, have gained significant attention in recent years. These games promise unique features such as play-to-earn mechanics, in-game asset ownership, and decentralized governance structures. However, a recent report suggests that over 30% of blockchain games launched in 2023 have already been discontinued or abandoned.

The Growing Trend of Discontinued Web3 Gaming

According to data compiled by various sources, out of the total of 1,318 blockchain games announced since 2021, a staggering 407 games, equivalent to 31%, are now classified as discontinued or abandoned. This classification denotes either official announcements of project cancellations or a prolonged period of inactivity.

The reasons behind the discontinuation of blockchain games are multifaceted. Funding constraints and evolving market conditions, especially in acquiring and managing digital assets, are often cited as primary culprits. Smaller, underfunded projects appear to be particularly vulnerable, often vanishing silently without any official announcements.

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Challenges and Trends in Web3 Game Discontinuation

Multichain Games and Single-Chain Projects

The report spanning 2021-2023 highlights a concerning trend in the latter half of 2023. Multichain games, which utilize multiple blockchain networks and gaming dApps, experienced a 17% discontinuation rate. Single-chain projects were not exempt from discontinuation, with Binance’s BNB Chain leading with an 11% abandonment rate, followed by Polygon at 10%.

Funding Constraints and Market Dynamics

Funding stability is crucial for the success of any project, and blockchain games are no exception. Gaming guilds, which share funds to support blockchain game projects, can help mitigate these funding challenges. Many discontinued games faced funding challenges, especially during the crypto winter, when market conditions were unfavorable. These challenges, combined with the fast-paced nature of the gaming industry, can make it difficult for projects to sustain operations.

Technological Hurdles, In Game Digital Assets, and User Preferences

Blockchain gaming presents its own set of technological hurdles for game developers. Integrating blockchain technology into games requires expertise and resources. Additionally, evolving user preferences and market dynamics play a significant role in the success or failure of blockchain games.

High-Profile Cases and Lessons Learned

Notable cases of discontinued games, such as “Goals,” which raised millions before backtracking on its blockchain integration, highlight the dynamic nature of the industry. In some high-profile cases, gaming DAOs have emerged as decentralized decision-making and governance platforms, showcasing the potential for communitarian control and player compensation through play-to-earn mechanisms. These high-profile cases may indicate a shift towards prioritizing core gameplay and user experience over tokenized elements.

The Emergence of New Blockchain Games and Game Developers

Amidst the challenges faced by the blockchain gaming industry, new games continue to emerge. These new blockchain games are creating unique gaming economies that remunerate players for their time, skill, and attention in unprecedented ways. In Q4 2023, the Big List welcomed 65 new blockchain games. Among these, 11% embraced the multichain approach, signifying a continued trend of games integrating with multiple blockchains. In terms of games deploying on a single chain, significant growth was observed in Arbitrum, Optimism, Immutable, Ethereum, StarkNet, and Avalanche.

The Sustainability, Gaming Economies, and Value Proposition of Blockchain Gaming

The discontinuation rate of blockchain games mirrors the challenges faced by the broader gaming industry, where a significant percentage of non-crypto mobile games are also canceled during development. However, despite these challenges, the potential of blockchain technology in enriching gaming experiences remains alluring. Ownership of in-game assets, unique digital economies, and decentralized governance structures are still enticing propositions. Additionally, the interoperability of in-game assets across various gaming worlds allows for assets to be easily transferable and monetizable, providing a new dynamic for games and gamers.

Critical Reflections on Blockchain Gaming

As the blockchain gaming industry navigates through these challenges, critical reflections on sustainability, value proposition, and ethics are necessary. Smart contracts play a crucial role in managing various game processes and ensuring transparency. Open discussions and informed approaches are vital to address long-term sustainability concerns and the true value of blockchain integration in gaming.

The Entry of Traditional Gaming Studios

According to a survey conducted by the Blockchain Game Alliance, many respondents expressed the belief that partnerships with industry leaders, including traditional game studios, will have a positive impact on web3 gaming in 2024. This entry may bring fresh perspectives, expertise, and resources that can help shape the future of blockchain gaming.

The Future of Blockchain Games

The blockchain gaming industry is still in its early stages, and the lessons learned from the initial phase of experimentation and adaptation will undoubtedly shape its future. Unlike traditional gaming, where players lose their assets when changing gaming platforms, Web3 gaming offers true ownership and interoperability of in-game assets. While challenges persist, industry experts remain optimistic about the potential of blockchain games in the broader gaming landscape. As the industry evolves, stakeholders must adapt strategies to ensure resilience in the rapidly changing decentralized technology landscape.

Conclusion

While over 30% of blockchain games launched in 2023 may have faced discontinuation, this trend is not exclusive to the blockchain gaming industry. Challenges such as funding constraints, market dynamics, and evolving user preferences contribute to the discontinuation of projects. Despite these challenges, the allure of blockchain gaming, with its promise of unique features and decentralized ownership, continues to attract developers and players who want to play games in innovative ways. As the industry matures, the lessons learned and the entry of traditional game studios may pave the way for a more sustainable and enriching future for blockchain games in the Web3 era.

FAQs

What is the discontinuation rate of blockchain games launched since 2021?

Out of 1,318 blockchain games announced since 2021, 31% are now classified as discontinued or abandoned.

What are the primary reasons behind the discontinuation of blockchain games?

Funding constraints, evolving market conditions, technological hurdles, and user preferences are cited as primary reasons.

What are the emerging trends in the blockchain gaming industry?

The emergence of new blockchain games, the entry of traditional game studios, and critical reflections on sustainability and value proposition.

How are popular games being integrated into Web3 gaming platforms?

Popular games, including older titles, are being upgraded and integrated into metaverse and blockchain platforms. This allows players to trade in their favorite in-game assets and collectibles, extending the life and engagement of these games.

  1. The Growing Trend of Discontinued Web3 Games

  2. Challenges and Trends in Web3 Game Discontinuation

  3. Multichain Games and Single-Chain Projects

  4. Funding Constraints and Market Dynamics

  5. Technological Hurdles and User Preferences

  6. High-Profile Cases and Lessons Learned

  7. The Emergence of New Blockchain Games

  8. The Sustainability and Value Proposition of Blockchain Gaming

  9. Critical Reflections on Blockchain Gaming

  10. The Entry of Traditional Game Studios

  11. The Future of Blockchain Games

  12. Conclusion

  13. FAQs

Disclaimer: The information contained in this article is for informational purposes only. It should not be considered as financial or investment advice. The reader should do their own research before making any financial decisions based on the information provided above. Hash Herald is not responsible for any losses in market