Major Crypto Game Shutdowns Surge in 2025 Market Downturn

Crypto gaming studio Battlebound and others have ceased operations due to funding shortages and challenging market conditions. The industry has witnessed a significant decline, impacting numerous gaming ecosystems.

The shutdowns include major titles and components, causing a ripple effect throughout the industry. Battlebound, known for Evaverse, cited these dynamics in their closure statement. “Despite the recent traction, we’ve been building for four years with a lean, scrappy team, extending our runway as far as possible while trying to secure our next funding round… Ultimately, we’re in the same position as many studios before us, closing our doors due to remarkably challenging market dynamics.” [1]

The industry faces sharp decreases in value, with total Web3 gaming investment plunging by 71% in the first quarter of this year. Gaming-related tokens are losing liquidity.

Observers see regulatory uncertainty driving investment away from this sector. Meanwhile, AI and real-world asset markets gain traction, changing the financial landscape for these gaming ecosystems.

Similar trends emerged during the 2022 bear market, but the impact now is broader, including more formidable companies. Previously, token and NFT values declined significantly during these downturns.

Experts from Kanalcoin suggest the gaming sector might consolidate further, facing sustainability issues and reduced funding resilience without decisive regulatory changes and market adaptations.