Blockchain technology has seen significant growth and adoption across various industries, including gaming. The concept of blockchain games, which leverage decentralized networks to offer players enhanced ownership and unique gaming experiences, has been met with enthusiasm. However, a recent analysis from the Big Blockchain Game List has revealed that more than 30% of blockchain games announced in 2023 have been discontinued or canceled. This article aims to analyze the challenges and opportunities faced by blockchain games and explore the potential for growth in 2024.
The State of Blockchain Games
As of January 2024, the Big Blockchain Game List includes a total of 911 games, categorized into 334 currently live and 577 still in development. Out of the 1,318 blockchain games listed since the initiative’s inception in 2021, 407 games have been marked as discontinued or abandoned. These figures signify a concerning trend in the blockchain gaming industry, reflecting project cancellations and prolonged periods of inactivity.
Funding challenges and market conditions arising from the crypto winter have been cited as the most common reasons for game discontinuations. Many projects chose to cease operations without making formal announcements, leading to a sense of uncertainty among players and investors. In the second half of 2023, a significant proportion of the discontinued games were labeled as multichain, indicating the growing trend of games integrating with multiple blockchains.
When analyzing discontinued games based on single blockchains, BNB and Polygon emerged as the frontrunners, accounting for 11% and 10% respectively. Ethereum, Sui, and Solana also made notable contributions, representing 6% of the discontinued games. It is interesting to note that Polygon surpassed Ethereum in terms of the proportion of discontinued titles, marking a shift from the H1 2023 update.
One standout case is the high-profile game “Goals,” which secured significant funding but discontinued its integration with blockchain technology. Despite raising $15 million in a seed round in 2022 and an additional $40 million in 2023, Goals faced challenges that led to its discontinuation. This example highlights the complexities of combining blockchain technology with traditional gaming models.
New Developments and Opportunities
In the last quarter of 2023, the Big List welcomed 65 new blockchain games, indicating continued interest and development in the industry. Among these, 11% embraced the multichain approach, emphasizing the trend of integrating with multiple blockchains. On the other hand, games deploying on a single chain saw significant growth in Arbitrum (9%), followed closely by Optimism, Immutable, Ethereum, StarkNet, and Avalanche.
A survey conducted by the Blockchain Game Alliance revealed that 19.8% of respondents believed the entry of traditional game studios into the realm of web3 gaming would have the most positive impact in 2024. This perspective suggests that collaborations and partnerships between established gaming companies and blockchain game developers could bring new ideas, resources, and opportunities to the industry.
Despite the challenges faced in 2023, industry leaders remain optimistic about the future of blockchain games. Yat Siu, the executive chairman of Animoca Brands, views the current period as a “cleanup year” for the industry, where lessons are learned, and improvements are made. Siu, a staunch believer in blockchain games, expressed optimism and stated his belief in a robust year ahead in 2024.
However, to achieve sustained growth and overcome the hurdles faced by many blockchain games, several key areas need to be addressed. These include regulatory uncertainties, scalability issues, user experience enhancements, and a more diverse range of game genres and gameplay mechanics. By addressing these challenges head-on, the blockchain gaming industry can create an environment that fosters innovation, attracts a broader audience, and increases the longevity of blockchain games.
The rise and fall of blockchain games have been marked by both successes and challenges. While the discontinuation of games highlights the vulnerabilities and risks associated with the industry, it also presents an opportunity for growth and improvement. By learning from past experiences and embracing new developments, the blockchain gaming industry can pave the way for a brighter future in 2024 and beyond.