Web3 Games Collapse After $15 Billion Boom

Over 90% of Web3 gaming projects have failed, with token prices plummeting and funding to studios collapsing by 93%. The play-to-earn model, which fueled the boom, proved unsustainable as new capital inflows slowed, leaving many hyped titles like Axie Infinity trading at a fraction of their peak values. Investors and studios poured billions into tokens and NFTs before developing compelling games, a strategy that backfired as capital shifted towards AI, real-world assets, and layer-2 infrastructure. This shift resulted in over 300 blockchain game shutdowns, serving as a cautionary tale about prioritizing speculation over product-market fit in the gaming industry.