In 2023, the blockchain gaming industry faced a setback, with 407 out of 1,322 games shutting down. This amounted to a significant 31% of the total games, and what’s notable is that 69% of these still need to make it past the development stage. The Big Blockchain Game List revealed that the first half of the year saw 248 game closures, followed by 162 in the second half.

The reasons behind these closures were primarily tied to funding issues and the overall market conditions. 

Surprisingly, even prominent games like Blankos Block Party and Goals faced challenges. Despite Blankos Block Party’s intention to focus on a mobile version and Goals securing substantial funding in 2022 and 2023, both games succumbed to the industry’s challenges. Interestingly, BNB Chain emerged as the leader in discontinued games, followed by Polygon, Ethereum, Solana, and SUI. This trend raises questions about the sustainability of blockchain games and the need for robust strategies to navigate the evolving landscape.

Betting on Blockchain Gaming

Despite a challenging year for blockchain games in 2023, there is optimism within the crypto community for positive developments in the industry. The last quarter of the year saw the emergence of 65 new blockchain games, with 11% of them supporting multiple networks—a promising trend. Among the networks, Arbitrum led with 9% of new games, followed by Optimism, Immutable, and Ethereum, each covering 8% of the list.

Encouragingly, the traditional gaming industry is gearing up to embrace Web3, with nearly 20% of companies planning growth in the blockchain gaming sector in 2024, as per the Blockchain Game Alliance report. Animoca Brands anticipates 2024 to be a period of “cleaning up” the blockchain industry, signalling renewed interest and commitment.

Recent success stories are also contributing to the industry’s revival. A new game on the TON blockchain, called Notcoin, attracted over 4 million users in just one week. The game’s unique “mining” feature for the yet-to-be-released meme coin Notcoin, combined with a referral link system, garnered attention and discussions within the community.

Conclusion

While the blockchain gaming industry faced challenges in 2023, marked by the discontinuation of a significant number of games due to funding issues and market conditions, there is a sense of renewed hope and growth. The emergence of 65 new blockchain games in the last quarter, with a notable percentage supporting multiple networks, reflects a positive trend. The traditional gaming industry’s increasing interest in the blockchain sector, coupled with success stories like the rapid rise of Notcoin, suggests a potential turning point. As companies plan to expand into blockchain gaming in 2024, the industry appears poised for a period of revitalization and increased legitimacy, despite the setbacks experienced by prominent games like Blankos Block Party and Goals.