Web3 Games Encounter Development Bottlenecks, How Can the Industry Break Through the Predicament?

Recently, there has been a large-scale halt of projects in the Web3 gaming sector. Several highly anticipated projects have announced the termination of their development, including Tatsumeeko, Nyan Heroes, and Blast Royale. Even the MMORPG project Ember Sword, which had previously received $200 million in funding, suddenly shut down, shocking the industry.

This phenomenon has raised concerns about the development prospects of Web3 games. The main reasons are as follows:

First of all, the gaming industry itself has a high failure rate. According to research, the mortality rate of mobile games is as high as 83% within three years, and 40% of game projects even fail during the development stage. Web3 games are no exception to this industry rule.

Secondly, the user retention of Web3 games is quite challenging. After attracting users through token incentives in the early stages, it is often difficult to maintain long-term activity. User churn can lead to a drop in token prices, resulting in a negative cycle.

Thirdly, the current investment environment is becoming conservative. In the first quarter of 2025, the financing amount for Web3 games decreased by 68% year-on-year, and by 71% compared to the previous quarter. The decline in investment enthusiasm has made it difficult for many projects to obtain sustained funding support.

In addition, some projects suffer from excessive hype, poor product quality, and other issues, which also damage the reputation of the entire industry. Taking Ember Sword as an example, its rudimentary game graphics have left players greatly disappointed and have been labeled as a "scam."

In the face of these challenges, industry insiders generally believe that Web3 game development should return to its essence:

1. Prioritize the quality and playability of the game itself, rather than introducing tokens or NFTs too early.

2. Focus on the core elements of the game, such as characters, narrative, gameplay experience, and community interaction.

3. Design an economic model reasonably to avoid excessive reliance on token incentives.

4. Extend the development cycle and improve game quality to attract and retain real gamers.

5. Handle players' expectations of asset ownership with caution, recognizing that the value of assets is closely related to the game ecosystem.

In summary, for Web3 games to break through the current predicament, they need to return to the essence of gaming and create a high-quality gaming experience. Only by truly achieving "fun" can they stand firm in a fiercely competitive market and achieve long-term development.