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Is web3 gaming dying? key issues and future solutions

Web3 Gaming: Facing Trouble or Just Growing Pains? | Insights Amid Shutdowns

By

Chloe Martin

Jun 1, 2025, 05:39 PM

Edited By

Alice Wong

2 minutes reading time

A graphic showing the contrast between a thriving gaming environment and a declining one, symbolizing the issues in Web3 gaming.
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A wave of shutdowns and bankruptcies is sweeping through the Web3 and blockchain gaming sector, leaving many to question whether this trend marks impending doom or merely temporary setbacks. As of June 2025, concerns focus on the user experience and the industry's appeal to actual gamers.

Declining Interest and User Concerns

Recent trends show many projects struggling to maintain popularity.

  • Statements from Players: "No one cares about web3 gaming except investors Theyโ€™re just glorified iPhone games that charge you for every little thing."

  • Market Sentiment: Players express skepticism about the industry's sustainability, citing a preference for traditional games that offer genuine entertainment rather than crypto-based hype.

The Role of Alternative Platforms

Avalanche-based projects like Spellborne are gaining traction. Fans highlight that this game maintains quality and community engagement, saying, โ€œThe quality of the game and the community emanates a strong feeling of potential.โ€ However, many still believe existing platforms like Solana are far ahead, potentially leaving Avalanche behind.

"Games based on hype instead of a real product will definitely have more chances to die off when hype passes."

Challenges in Tokenomics and Game Quality

Developers are struggling to create stable tokenomics necessary for long-term games. As blockchain gaming interests wane, questions about quality and real gamer experiences arise. The industry seems divided:

  • Some celebrate the innovations in existing platforms.

  • Others criticize new games as mere cash grabs appealing only to investors.

Key Points to Consider

  • ๐Ÿšฉ User Experience: Poor UX is a prominent issue hindering mainstream adoption.

  • โš ๏ธ Market Dynamics: As interest in crypto games fades, traditional gaming options are thriving.

  • ๐Ÿ“‰ User Opinions Are Mixed: Players express frustration while also supporting promising projects like Spellborne.

With uncertainty looming, will Web3 gaming adjust to survive, or are we seeing the decline of this ambitious approach? Interest continues to shift between platforms, and the market watches closely.

What Lies Ahead in Web3 Gaming?

Thereโ€™s a strong chance Web3 gaming will pivot significantly in the coming months. Developers may shift focus toward improving user experience and crafting engaging gameplay that appeals directly to traditional gamers. Experts estimate around 60% of current blockchain gaming projects could either shut down or reorganize if they fail to address these concerns quickly. However, the emergence of quality titles like Spellborne suggests that a more stable future is possible if developers adapt and prioritize innovative gaming mechanics over mere profitability.

Unlikely Echoes from the Past

The trajectory of Web3 gaming resembles the early days of online social networks in the mid-2000s. Many platforms, initially driven by investor speculation, saw rapid rises but struggled to maintain user engagement without a solid foundation. Similar to the meteoric fall of platforms that focused solely on hype, those in the Web3 gaming space today could face a similar fate unless they build genuine value into their offerings. Just as social networks ultimately flourished by enhancing user connections, Web3 gaming must find its own path toward authentic engagement to survive.