- 75% of blockchain games released in the last five years have failed according to a new study
- The study considered a game “failed” if its average usage has dropped by 99% from its highest
- 2022 had the highest number of failed games with 2021 having the highest number of successful games
A study by CoinGecko has disclosed that 3 out of 4 blockchain games have failed to keep an active user base. The study focussed on web3 games launched between 2018 and 2023, defining a failed game as one whose average user activity has plummeted by at least 99% since launch. According to CoinGecko, only 690 out of the 2,817 games launched during this period still have noticeable user activity, an observation that coincides with a recent report indicating that investments into the gaming field dropped by 38% in Q3.
80% of Web3 Games Fail Each Year
The study revealed that around 80% of games launched each year have become inactive, with 2022 having the highest number of inactive games. CoinGecko also observed that the development of blockchain games slowed in some years, specifically in 2019 and 2020, due to the start of the ongoing crypto winter.
Ever wondered how many Web3 games have failed?
Our study shows that approximately 3 out of 4 Web3 games have become inactive in the five years since the emergence of the GameFi niche.
Read the full study: https://t.co/qxcJ979Pky pic.twitter.com/qgM2eVjxnB
— CoinGecko (@coingecko) November 29, 2023
The two years also recorded the highest failure rate at 94%, a scenario that changed the following year which recorded a failure rate of below 50%, a phenomenon that was aided by a recovering crypto market.
This year, 70.7% or 509 games have fizzled out, with the study noting that the failure rate is lower than in other years, except 2021, which may be a sign that the industry is stabilizing. The stabilization may be due to leading web3 and traditional firms partnering to support developers in the space.
Amazon, Unity, and Razer Enter Web3 Gaming
Amazon and Immutable, for example, partnered to extend blockchain gaming boundaries. Others like gaming engine Unity and gaming hardware manufacturer Razer have also announced entry into the web3 game world.
Although the web3 game failure rate is still high, this may likely change when the bear season ends.
