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

Recently, the Web3 blockchain game "MapleStory N," adapted from the classic IP "MapleStory," has officially launched, and the strong performance of its NXPC token has brought renewed attention to the long-quiet Web3 gaming sector. However, at the same time, a large-scale project halt phenomenon has emerged in the Web3 gaming field.

Starting from 2025, several highly anticipated Web3 game projects announced the termination of their development, including Tatsumeeko, Nyan Heroes, Blast Royale, Rumble Kong League, and others. Even the MMORPG project Ember Sword, which raised over $200 million, suddenly shut down, shocking the player community.

Why Are Web3 Games Hard to Sustain?

Insufficient funds are the main reason for the shutdown of most game projects. The developers of Nyan Heroes stated that despite the game test attracting a large number of players, they still failed to obtain the funds needed to complete the game. The development team of Tatsumeeko claimed that the project's scale was too complex and did not meet sustainability standards.

In addition to funding issues, the deteriorating market environment and player loss are also important factors leading to the shutdown of blockchain game projects.

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

In fact, the high death rate of Web3 games is not a new phenomenon. According to a report by CoinGecko, the average annual failure rate of Web3 games launched between 2018 and 2023 is as high as 80.8%. Research by ChainPlay shows that 93% of Web3 games have already "died".

However, a high failure rate is not unique to blockchain games. The traditional gaming industry also has a high project failure rate. According to research, only 25% of video game projects are completed on time or within an acceptable delay range. The death rate of mobile games within three years is as high as 83%.

Staged Financing Model Meets Deteriorating External Environment

Game development usually adopts a "staged financing" model, but this model is difficult to implement in the current blockchain gaming sector. According to statistics, the average token price of GameFi projects has dropped by 95% compared to historical highs, resulting in significant losses for most investment institutions.

In the current Web3 gaming sector, airdrops and token incentives have become fundamental means to attract users. However, this strategy is difficult to maintain for long-term user retention. Once the token issuance is completed, user attrition can lead to a decline in token prices, entering a negative spiral.

Investment institutions' interest in blockchain gaming projects is also declining. In the first quarter of 2025, the financing amount for Web3 game projects was approximately $91 million, a decrease of 68% compared to the same period last year.

Money Grabbing, Running Away, and "Garbage" Producers

It is regrettable that some failed projects had developers who at least showed genuine intent to create. However, there are also some teams that entered the industry with the purpose of hype and making money, leaving after creating "cyber garbage."

Ember Sword is a typical case. The project attracted 35,000 players and sold NFT virtual land worth a total of $203 million. However, the simplicity and roughness of its game testing visuals left players very disappointed. With the project's closure, many players suffered huge losses, with some claiming losses of at least $30,000.

The Disillusionment of Player Ownership Commitment

Web3 games once claimed to "give players true ownership of in-game assets", but in reality, these assets are still highly dependent on centralized game servers and developer support. When a game project is discontinued, players' NFTs and tokens essentially lose their practical use, and their value plummets.

Even if a unified standard is established at the technical level, the so-called "interoperability" still faces structural challenges arising from the differences in game types. Assets between different types of games are difficult to transfer and reflect value across platforms.

Why Do Blockchain Game Investors Feel More Pain Despite Being Game Payers

In traditional crowdfunding game models, players usually invest a small amount and often view it as support for the developers. Even if the project fails, supporters tend to see it as support for the idea rather than a failed speculation.

However, in the Web3 model, players purchase in-game assets or tokens directly, facing real monetary evaporation when the project fails, leading to a stronger sense of loss and betrayal.

Where Should Web3 Games Go?

The industry generally believes that Web3 game developers must first ensure the quality and playability of the game itself, rather than introducing tokens or NFTs for monetization too early. The focus should be on the core elements of the game, such as characters, narrative, gameplay experience, and community interaction.

Web3 games need to return to value-driven and technical essence to get out of trouble and make games really fun. Only by solving multiple problems such as the high failure rate of the gaming industry, difficulties in player retention, fund allocation, and financing models can Web3 games break out of the current predicament.