Is Blockchain Gaming Dead?

The web3 gaming industry entered 2025 facing mounting challenges, with a growing number of high-profile games and studios closing down due to persistent funding difficulties and waning player engagement. Once seen as a promising avenue for blockchain adoption, web3 gaming has struggled to sustain development momentum in a highly competitive environment. Several games that once attracted significant attention and investment have now halted operations, raising questions about the long-term viability of blockchain-based gaming projects.

Deadrop Studio Closes Amid Internal Turmoil

Midnight Society, the studio behind the vertical extraction shooter Deadrop, announced its closure in January 2025. The news followed the 2024 removal of co-founder Dr. Disrespect after allegations of misconduct. Reports from former employees indicated that staff were given only two days' notice before operations ceased. Deadrop had spent two years in early access and sold NFT access passes on Ethereum scaling solution Polygon, along with other in-game items. After the shutdown, players began organizing via the game's Discord server to pursue refunds, citing non-delivery of promised content.

Midnight Society Shuts Down and Discontinues DeadDrop

Is Blockchain Gaming Dead?

Ember Sword Shuts Down After Funding Shortfall

Ember Sword, developed by Bright Star Studios, ended development in May after failing to secure necessary funding. The game had previously gained attention for attracting over $200 million in pledges during a 2021 NFT land sale campaign. However, actual sales failed to meet expectations. After entering closed beta in mid-2024 and releasing a limited early access version, the game faced criticism and ultimately went offline. Bright Star Studios cited financial constraints as the reason for ending the project and acknowledged the broader difficulties affecting even the most well-funded web3 games.

Ember Sword Discontinued Despite Raising Millions

Is Blockchain Gaming Dead?

Realms of Alurya and Wonder Wars Halted on Ronin

Realms of Alurya, originally planned for launch on the Treasure blockchain, migrated to Ethereum’s Ronin network after Treasure pivoted to focus on artificial intelligence initiatives. The developers later revealed that expected grant funding was cut, which disrupted the development timeline. Without new financial support, the team paused development indefinitely. Wonder Wars, another project on the same network, also suspended operations for similar reasons. Both projects have been left in limbo as teams evaluate their future prospects.

Is Blockchain Gaming Dead?

Nyan Heroes Ends Development Despite Strong Early Interest

Solana-based shooter Nyan Heroes, developed by 9 Lives Interactive, was discontinued in May 2025. The game had achieved over 250,000 wishlist entries on PC platforms and completed multiple playtests. However, it failed to raise the necessary capital to move into full release, leading to the decision to shut down the project. The game's NYAN token lost nearly all its value, dropping more than 99% from its all-time high recorded in 2024. Studio leadership indicated they are exploring the potential sale of the game's intellectual property but emphasized that any decisions would take time to finalize.

Is Blockchain Gaming Dead?

Symbiogenesis Concludes With Planned Closure

Square Enix’s blockchain project Symbiogenesis, launched as a digital collectible narrative game, is scheduled to end on July 15, 2025. Built on Ethereum and connected to scaling solutions like Polygon and Arbitrum, the game was unique in that its shutdown was pre-planned as part of a defined content roadmap. Square Enix confirmed that the game's conclusion aligns with the end of its final story chapter, rather than being the result of financial issues. The project’s integration with Sony’s Ethereum layer-2 network, Soneium, marked one of its final promotional efforts before winding down.

Square Enix’s Symbiogenesis Impending Shutdown

Is Blockchain Gaming Dead?

The Mystery Society Suspends Development Following Funding Issues

The Mystery Society, developed by Great Big Beautiful Tomorrow, ceased development in February. The Ethereum-based game was inspired by titles like Among Us and combined casual gameplay with a murder mystery format. Despite raising $3 million in funding and transitioning from Polygon to the Immutable chain in late 2024, the game was unable to secure further investment. CEO Chris Heatherly pointed to a broader culture of short-term thinking in web3 as a contributing factor to the industry's difficulties, describing the market dynamics as unsupportive of long-term development.

Is Blockchain Gaming Dead?

Raini: The Lords of Light to Shut Down in July

Raini Studios announced in June that its digital card-battling game Raini: The Lords of Light would close permanently on July 21. The game, which featured NFTs on Ethereum and Avalanche as well as the RST token on Avalanche’s Beam network, gained attention for its use of web3-themed characters and humor. As part of the transition, the studio will distribute the remaining RST token rewards to players and shift focus to two upcoming titles with revised tokenomics strategies. The game’s shutdown reflects another shift in strategy within the web3 gaming space.

Is Blockchain Gaming Dead?

Gala Games to End The Walking Dead: Empires

Gala Games will sunset The Walking Dead: Empires, a multiplayer survival RPG based on the AMC television franchise, at the end of July. The Ethereum-based title was previously in open beta and featured NFTs that once held substantial value on secondary markets. The publisher stated that players will receive mystery boxes containing NFTs from other Gala Games projects as compensation. The decision to end the game highlights the difficulties in maintaining licensed web3 projects over the long term.

Gala Shutting Down The Walking Dead: Empires

Is Blockchain Gaming Dead?

MetalCore and Blast Royale Join the List of Suspensions

Mech-based shooter MetalCore paused all gameplay and shut down its Discord community in March. The developers stated they were making "important changes" but have not provided updates since. Originally on Immutable zkEVM, the game had begun migrating to Solana in late 2024. Meanwhile, Blast Royale, a mobile battle royale game, confirmed it would close on June 30. Although the game’s code has been open-sourced, its developers have exited the project. The game's NOOB token, still live on Base, has dropped over 99% in value.

Is Blockchain Gaming Dead?

Mojo Melee Shuts Down as Studio Pivots to AI

Mojo Melee, an auto-battler game inspired by titles like Teamfight Tactics, will go offline on July 1. Developer Planet Mojo announced the closure as part of a pivot to artificial intelligence initiatives, including a new platform for creating AI-generated movies. Previously, the game had held promotional campaigns with Amazon Prime and utilized NFTs for gameplay customization. The studio attributed the shutdown to market changes that made continued development unsustainable.

Is Blockchain Gaming Dead?

A Difficult Year for Web3 Gaming

The number of web3 games shutting down in 2025 signals a broader shift in the blockchain gaming landscape. Many of these games launched with significant investment and community support but ultimately struggled to secure long-term funding or reach a sustainable user base.

While some projects were deliberately closed after fulfilling their roadmaps, most cited financial issues and market pressures as primary factors in their demise. The closures reflect the ongoing volatility in the web3 gaming space and suggest that future success may depend on more stable funding models, stronger player engagement strategies, and clearer value propositions for blockchain integration. Here is a list of all the games mentioned in the article: