Blockchain Gaming Investment Sees Sharp Decline in 2023: Analysis and Outlook for 2024
The once-promising world of blockchain gaming has hit a major roadblock in 2023, with investments in the sector plummeting by a staggering 72%. Despite this setback, the industry still managed to attract a substantial $1.4 billion in funding, according to a recent analysis by BanklessTimes.com.
Jonathan Merry, CEO of BanklessTimes, pointed to several challenges that the blockchain gaming industry faced in 2023, leading to the sharp decline in investment. One significant factor was the abandonment of existing blockchain games, either due to prolonged inactivity or a funding shortage exacerbated by the bear market’s impact.
In a startling revelation, it was found that a total of 410 games were discontinued in 2023, with 248 games being abandoned in the first half of the year and 162 in the second half. This represents around a third of all the games recorded by the portal.
Among the high-profile exits was Blankos Block Party, a popular NFT-based multiplayer game that once boasted over 60,000 active players monthly. Mythical Games, the studio behind the game, raised $75 million in 2022, but announced the shutdown of its PC version in mid-December.
Another notable departure was GOALS, a Swedish gaming studio that raised $15 million in 2022 and an additional $40 million last year to develop sports-related blockchain games. However, the studio has since announced that it is no longer interested in integrating blockchain into its games.
Despite the challenges faced in 2023, there is hope on the horizon for the crypto gaming industry in 2024. Traditional gamers are increasingly looking for something new, creating an opportunity for blockchain game developers to refine their strategies and appeal to a broader audience.
Leading gaming corporations are also starting to see the potential in blockchain gaming, but must proceed cautiously and focus on their core audience to ensure success. With the right approach, 2024 could be the year in which traditional gamers fully embrace the decentralized gaming experience.
As the year progresses, gamers will be eagerly watching to see how developers navigate these challenges and whether blockchain games will finally receive the recognition and excitement that mainstream games like GTA have enjoyed in the past.
