In 2023, over 30% of blockchain games ceased operations, reflecting broader trends in the volatile gaming industry.
The landscape of cryptocurrency gaming has undergone a dramatic shift, with a significant number of crypto games ceasing operations in 2023. Jon Jordan, the creator of the Big Blockchain Games List and a writer for BlockchainGamer.biz, has presented data showing a drastic increase in the number of discontinued or inactive crypto games, surpassing earlier reports by Game7, a blockchain gaming group.
During the first half of 2023, Jordan’s findings indicate that 248 crypto games were either discontinued or became inactive. This trend continued into the second half of the year, with an additional 162 games ceasing operations. Cumulatively, this amounts to approximately 410 blockchain games going dark in 2023 alone, representing over 30% of the 1,322 games ever listed on the Big Blockchain Games List.
A primary factor leading to the designation of a game as “discontinued” is the absence of updates or activity. This typically means a game has ceased communications across its social media channels and official website for an extended period. Notably, several games have publicly announced their termination of development, often attributing their closure to market conditions and funding shortages. Examples of such games include Blankos Block Party, Gran Saga: Unlimited, The Harvest, Pixelcraft, Lost Archive Plus, Oath of Peak, and Arcane Magic.
Blankos Block Party, in particular, drew attention when Mythical Games discreetly declared its desktop version’s closure a year and a half after its high-profile launch on the Epic Games Store. The team is now refocusing its efforts on developing a mobile version of the game.
Blockchain Gaming’s Shift
The research has identified certain blockchains that experienced a higher number of game shutdowns. Binance’s BNB Chain tops this list, followed by games on the Polygon network, Ethereum mainnet, and Solana. In the latter half of 2023, the Sui blockchain also witnessed nine games discontinued.
It’s important to note that the size of the blockchain correlates with the number of games becoming inactive. This trend is consistent with Game7’s earlier findings, which showed that Polygon and BNB Chain were the most prolific in terms of game quantity, followed by Ethereum and Solana.
However, there are gaps in this data. A significant number of games that shut down in 2023 were listed under “unknown” or “other” for their respective blockchains. This ambiguity arises from the lack of clear information regarding the blockchain platforms used by these games on their social media, official websites, whitepapers, or other documentation.
Comparing to the Broader Gaming Industry
Despite the notable number of discontinued blockchain gaming projects, the sector’s approximate 30% discontinuation rate aligns with the broader gaming industry’s patterns. A 2023 report highlighted that about 43% of non-crypto mobile games get canceled during development, and 83% fail within three years.
The general gaming industry also faced challenges in 2023, including game cancellations, studio closures, and mass layoffs. An estimated 10,500 job cuts occurred in the game industry, as reported by the Game File newsletter. Furthermore, 2024 has already seen notable disruptions, with Minecraft Legends halting development updates and companies like Twitch, Unity, Discord, and Archiact announcing thousands of layoffs.
Concluding Thoughts
The current state of blockchain gaming, marked by a significant reduction in active games, mirrors broader trends in the gaming industry, albeit with unique challenges pertaining to the crypto sphere. This decline comes from various factors, including market volatility, funding issues, and a mismatch between blockchain technology and gamer interests.
Some games have even pivoted away from blockchain integration, with notable examples being Neopets Metaverse and Immortal Game. The decision to move away from crypto elements came from a lack of interest among their primary audiences and issues like cheating, as noted by their respective teams.
Despite these challenges, the blockchain gaming industry is still in a phase of evolution and experimentation. The discontinuation of numerous projects does not necessarily signal the end of blockchain gaming but rather a period of reassessment and realignment. Game developers and blockchain enthusiasts are learning from these experiences, potentially leading to more robust and engaging blockchain gaming experiences in the future.