The Great Collapse of Web3 Games: Exploring the Way Out of the "Cyber Graveyard"

Recently, several well-known Web3 game projects have announced their shutdowns, attracting widespread attention in the industry. From the launch of the blockchain game "MapleStory N," adapted from "MapleStory," which created a wave of excitement, to the successive shutdowns of projects like the blockchain ARPG Tatsumeeko and the NFT game Nyan Heroes, the Web3 gaming industry has experienced a rollercoaster of ups and downs.

Since 2025, there has been a large-scale project shutdown phenomenon in the Web3 gaming field. Many once highly anticipated projects have "died," including the blockchain FPS Blast Royale and the Rumble Kong League endorsed by NBA star Curry. Even the MMORPG project Ember Sword, which raised over $200 million, suddenly shut down, shocking the player community.

Reasons Why Web3 Games Are Struggling to Survive

Most suspended projects have expressed difficulty in obtaining the funding needed for continued development. Taking Nyan Heroes as an example, despite attracting millions of players during multiple tests, it still failed to raise the necessary funds to complete the game. The development team of Tatsumeeko stated that the project's scale is too complex and does not meet sustainability standards.

Overall, in addition to insufficient funding, the deteriorating market environment and player attrition are also significant factors leading to the shutdown of blockchain game projects. However, the high mortality rate has always been a persistent issue in the gaming industry. According to statistics, since the emergence of GameFi in 2017, the annual failure rate of Web3 games has reached as high as 80.8%.

Financing Model Encounters Setback

Game development typically adopts a phased financing model, but this model has proven difficult to implement in the current blockchain gaming sector. According to statistics, the average token price of GameFi projects has fallen by 95% from historical highs, resulting in significant losses for investment institutions.

Airdrops and token incentives can quickly attract users, but it is difficult to maintain long-term retention. User churn leads to a drop in token prices, entering a negative spiral that further undermines investor confidence. In the first quarter of 2025, the financing amount for Web3 gaming projects decreased by 68% year-on-year, indicating a decline in investment enthusiasm.

The Disillusionment of Player Ownership Commitment

Web3 games promised to give players true ownership of in-game assets, but in reality, these assets still heavily rely on centralized servers and developer support. After a game shuts down, players' NFTs and tokens often lose practical utility and significantly diminish in value.

Even with interoperability achieved at a technical level, the significant differences between game types make it difficult for assets to flow across platforms. Developers also lack the motivation to accommodate NFT assets from other games.

The Difference Between Traditional Crowdfunding and Web3 Models

In the traditional crowdfunding model for games, players invest relatively small amounts and often see it as support for creativity. In the Web3 model, players directly purchase in-game assets or tokens, facing real financial loss when a project fails, leading to a stronger sense of loss.

The Future Direction of Web3 Games

It is widely believed in the industry that Web3 game developers should first ensure the quality and playability of the game itself, rather than introducing tokens or NFTs too early. Developers need to return to the core elements of the game, such as characters, narrative, gameplay experience, and community interaction.

Overall, for Web3 games to break free from their predicament, they need to return to value-driven and technological essence, with a focus on how to make games truly enjoyable. Only on the basis of gameplay can we explore the new possibilities that Web3 technology brings to games.