The web game industry is faced with stricter investment conditions as capital flows become more selective, investors prioritizing sustainable projects compared to the collection of media -focused funds.
In February, the director of Gunzilla Games Web3, Theodore Agranat, described the game of blockchain as a “game of musical chairs” in which the same cycle capital through different projects and “no new money”. After that, they leave and are looking for the next project.
During the same month, the long -awaited illuvium web3 announced a 40%layout, demonstrating the need for “super skinny” teams on the current market. The co-founder and CEO of Sky Mavis Trung Nguyen announced a similar decision in October 2024, reducing 21% of its staff to optimize its budget for future projects.
Despite these events, web game professionals have said that capital still exists and has explained some of the factors contributing to the industry level.
Investors no longer blindly throw their money into projects
The co-founder of Sky Mavis, Jeffrey Zirlin, told Cintelegraph that the web game was not unique in difficulty, but rather that the same capital constraints affecting the broader cryptography industry.
The executive said that the web game 3 did not face a unique challenge because the landscape is “tight in all areas”.
However, Zirlin highlighted exceptions. He quoted Fableborne, a mobile web3 game which was overwritten by 16,000% despite the slowdown in the market, as demonstrating that “fresh capital actually flowed to Ronin”, Sky Mavis Blockchain Network. He added:
“It is not that the investment has completely dried up. It is just that investors no longer blindly launch money to projects as they did with the so-called “axis killers” who failed to deliver. »»
“Axie Killers” was a term used to describe game projects that claimed to be the next big web game3 which would exceed Infinity Axie, the flagship game of Sky Mavis.
Meanwhile, the co-founder of Sandbox and chief of the operation Sébastien Borget told Cintelegraph that the description of the “Musical Chairs” suggests a degree of random. Borget said he disagreed with this.
The executive said that if the new capital is more limited and investors are more cautious, there is now less unpredictability previously powered by beateering cycles.
“The success of blockchain games is increasingly depends on the ability to respect traditional game measures. These include delivering convincing content and gameplay, promoting the sustainable acquisition of users, establishing a solid economy in the application and creating a base of loyal users, “he added.
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Projects cannot simply “slap the NFT” in a game and increase millions
Josh Gier, director of marketing of the Coliseum game tournament platform, told Cointelegraph that the days of addition of non-buttocks (NFTS) to a game and to win massive support for cryptographic investors have disappeared.
“Yes, the speculative phase of blockchain games, where projects could increase millions by slapping the NFT on a game, has cooled. But that does not mean that capital has disappeared, “said Gier.
The executive said that capital is becoming more and more selective and takes place towards projects with fundamental solids and sustainable economies.
“Investors are showing an interest in games that integrate web3 elements in a way that improves players experience rather than focusing solely on financial incentives,” added Gier.
Vineet Budki, the CEO of the venture capital company Sigma Capital, said that some main investors, such as animoca brands, focus specifically on the blockchain games segment. He said that games take more time to build, unlike other niches, so game investments take more time.
However, the executive said, the lifting of web game capital has become more complicated. “As much as the moments when you made a video on the gameplay, have attractive and increased tokenomics of capital,” Budki said in a statement sent to Cointtelegraph.
The executive said that teams creating large games and knowing the distribution process are the elements that can attract capital.
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