The Success and Failure of Blockchain Games
Within the last five years, over three-quarters of launched blockchain games are now out of contention. From a total of 2,817 games which were released into the market between 2018 and 2023, only 690 remain with somewhat active players. This data defines a ‘failed’ Web3 game as one that, based on a 14-day moving average, has a 99% or more decrease in active users from its peak.
Failure rate in Web3 games
Throughout the last five years, more than 75% of Web3 games didn’t make the cut. 2021 brought in a record high for the number of blockchain games initiated in a single year, launching 738 games. However, in the subsequent year — which was characterized by significant cryptocurrency crashes — an unprecedented number of games, specifically 742, petered out.
This staggering record places the average failure rate of Web3 games at a whopping 80% for any given year since 2018. Noteworthy, the years of lower failure tended to align with the latter part of bull markets, while the spiked failure years were at the onset of bear market cycles.
First wave of Web3 games
CryptoKitties, which launched in late 2017, was among the first Web3 games that generated a significant buzz but has since seen a marked decline in its adoption rates. However, Decentraland, The Sandbox, and Axie Infinity are other Web3 games launched in those earlier years that are still widely enjoyed.
According to recent data, Alien Worlds, Splinterlands, and Planet IX held the top three positions for average unique active wallets used, this data covers the period from Jan. 1 to Apr. 22, 2023.
A shift in trends
Despite the high rate of failure in 2022, the year 2023 has seen a slower pace, with only 507 failed projects recorded as of Nov. 27. According to experts, “The lower failure rate could perhaps indicate a stabilization in the state of web3 gaming.”
In reflection, while there has been a 65% plunge in Web3 games in 2023, the game industry anticipates the arrival of ‘real hits’. Furthermore, the $26M NFL Rivals NFT: Web3 Gamer project confirms that the web3 gaming industry is not backing down, promising more interesting gaming innovations in the near future.
