The web3 gaming industry faces lighter investment conditions as capital flows become more selective, along with investors who appreciate sustainable hype-driven recruit projects.
In February, the Gunzilla Games Web3 Director Theodore Agranat described Blockchain Gaming as a “Game of Musical Chairs” where the same capital cycles by different projects and “no new money” enters. The executive also said users from the project to the project to pick up the amount. After that, they leave and search for the next project.
In the same month, the expected Web3 Game Illuvium announced a 40% disappearanceshowing the need for teams to go “super lean” in the market today. Co-Founder of Sky Mavis and CEO Trung Nguyen announced a similar move In October 2024, the cutting of 21% of its staff to optimize its budget for upcoming projects.
Despite these events, web3 gaming professionals said the capital still exists, and explained some of the factors that contribute to the trend throughout the industry.
Investors no longer blindly throw their money on projects
Sky Mavis co-founder Jeffrey Zirlin told Cointelegraph that web3 playing is not uniquely struggling but rather experiences the same capital barriers that affect the broader crypto industry.
The executive said web3 playing was not faced with a unique challenge because the scene was “crowded across the board.”
However, Zirlin pointed out the exceptions. He noted FableBorne, a Mobile Web3 game that was -oversubscribe of 16,000% despite the market collapse, such as showing that “fresh capital really flows into Ronin,” the Sky Mavis Blockchain network. He added:
“It’s not the investment in full. It’s just that investors aren’t that blindly throwing money into projects as they did in the so -called ‘Axie Killer’ that failed to deliver.”
“Axie Killers” is a term used to describe gaming projects that claim to be the next big web3 game beyond the Axie Infinity, the flagship of the Web3 of Sky Mavis.
Meanwhile, Sandbox co-founder and operating officer Sebastien Borget told Cointelegraph that the description of the “Game of Musical Chairs” suggests a level of randomness. Borget said he didn’t agree with it.
The executive said that while the new capital is more limited and investors are more careful, there is now less than the lack of sanity that has previously been filed by hype cycles.
“The success of blockchain games depends on the ability to meet traditional gaming metrics. This includes delivering compelling content and gameplay, care of sustainable user extraction, establishing a strong in-app economy and building a loyal user base,” he added.
Related: Axie Infinity is teasing a new web3 game while NFT Outlook becomes positive
Projects not just “slap NFT” in a game and raise million -million
Josh Gier, Chief Marketing Officer of the Gaming Tournament Platform Coliseum, told Cointelegraph that the days of adding only invisible tokens (NFT) to a game and earning huge support from crypto investors have disappeared.
“Yes, the speculation -the blockchain phase of playing, where projects can raise millions by simply slapping NFTs in a game, is cooled. But that doesn’t mean the capital has disappeared,” Gier said.
The executive said the capital is becoming more selective and flowing towards projects with a strong foundation and sustainable economy.
“Investors show interest in games that incorporate web3 elements in a way that improves the player’s experience rather than just focusing on financial incentives,” Gier added.
Vineet Budki, CEO of venture firm Sigma Capital, said some major investors, such as the Animoca Brands, were specifically focused on the Blockchain gaming segment. He said the games were longer to build, unlike other niches, so gaming investments were longer to bear fruit.
However, the Executive said, however, the web3 gaming capital increase has become more complicated. “Lost times when you make a video on gameplay, have a attractive -attractive tokenomics and raise capital,” Budki said in a statement sent to Cointelegraph.
The executive said teams that build great games and knowledge of the distribution process are the elements that can attract capital.
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