- The Web3 space is set to accumulate over $22 billion in revenue by 2025.
- About 2127 Web3 games have failed since 2018.
- Nearly 40% of new Web3 games are set to be released in the next 12 to 18 months.
The Web3 gaming space is attracting significant traction and massive investments. However, the number of failing games raises concerns for the larger Gamefi market.
According to BanklessTimes.com, over 75% of Web3 games launched since 2018 have become inactive.
The site's financial analyst, Alice Leetham, comments:
Web3 ecosystem is set to have more players and receive more substantial revenue by 2025. However, the number of failed games is a testament to how risky it is to invest in these games. Investors must proceed cautiously before rushing to pour their investments into Web3 games.BanklessTimes crypto expert, Alice Leethan
Web3 Failed Games
Since 2018, about 2817 Web3 games have been started, and only 690 are still active today. In 2018, an average of 422 web games were launched, 307 of which tanked in the same year, representing a 72.7% fail rate.
The situation only worsened for the next two years, with 2019 seeing a 94.3% fail rate and 2020 94.2%. The number of games also hit a considerable low, with both years witnessing the launch of only 244 games, slightly more than half of 2018’s.
Undeniably, 2021 marked an improvement in the Web3 space, having a 45.9% fail rate, with over 881 games initiated that year. However, the number of failed games increased in 2022, closing the year with the highest fail rate of 107%. As of 2023, about 509 games are dead, totalling 70.7% in fail ratings, a considerable improvement from 2022.
What to Expect in the Future of the Web3 Space
While the fail rate is considerably high, we expect more play-to-earn Web3 games in the market. Game developers are working on new platforms with novel features and infrastructure to ease cross-game interoperability and asset management. The new features look to integrate multiple cryptocurrencies seamlessly to allow for enhanced trade with NFTs and DeFi across various networks.
Ideally, the new games will be vital in inviting more gamers and securing substantial investments. The coming months will be crucial in monitoring the progress of the Web3 space. The new games’ rating will be instrumental in predicting the industry's future.
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