Blockchain Gaming Industry Faces Shakeout as Industry Resets High Scores
According to the latest H2 2023 report from Big Blockchain Games List, the blockchain gaming industry is undergoing a significant transformation. The data reveals that out of the 1,322 blockchain games that have been listed, 407 (31%) have ceased operations.
Over the past six months, 162 games, accounting for 15% of the total, have been discontinued. Among these, 50 were live games, while 112 were still in development. In the first half of 2023, Big Blockchain Games reported that 248 games were discontinued.
One of the hardest-hit categories was multichain games, which were able to operate across different blockchain platforms. In H2, 28 of these games (17%) shut down. The ‘unknown’ category, comprising games with undisclosed blockchain affiliations, saw 21 games (13%) cease operations. Single-chain games also experienced closures, with BNB Chain losing 18 games (11%), Polygon losing 17 games (10%), Ethereum losing 10 games (6%), and Sui and Solana each witnessing 9 games (6%) go under.
Notably, “Blankos Block Party” by Mythical Games, a title that was once included on the Best Live list, also came to an end in December 2023. However, it is now reported to be undergoing a revamp for a mobile release in 2024.
The majority of these shutdowns were smaller ventures led by teams lacking experience and funding. While funding issues and market conditions were commonly cited as reasons for game cancellations, most projects simply faded away without formal announcements, indicating discontinuation due to prolonged inactivity.
Despite the trend of game closures, the blockchain gaming sector is showing signs of growth and activity in other areas. DappRadar data from the previous month revealed a surge in both volumes and Unique Active Wallets, suggesting a potential upswing. The increased engagement can be attributed to new game launches, seasonal events, or the introduction of new features that attract a larger audience.
The contrasting figures of game closures and spikes in user engagement paint a picture of a rapidly evolving blockchain gaming segment, where survival and success are seemingly reserved for those who are adaptable and well-funded.