Web3 Gaming Enters a Transformative Phase

The Web3 gaming industry is entering a major turning point. Jihoz, co-founder of Axie Infinity and Ronin Network, described this phase as a necessary cleansing period. Many projects have shut down due to poor funding and unstable tokenomics. As the early hype around play-to-earn fades, developers are shifting their focus to real utility, player retention, and long-term economic models. Jihoz believes this is a crucial moment for the industry to mature. It opens new opportunities for dedicated teams with transparent governance and strong community-building to lead the next generation of blockchain games.

Many Web3 Games Cease Operations

2025 has seen a wave of Web3 game shutdowns. Titles like Nyan Heroes, Champions Ascension, Ember Sword, Wonder Wars, and Blast Royale have all halted development. The primary reasons include unsustainable costs, poor user retention, and intense market saturation. While this trend may seem negative, industry analysts view it as a form of natural selection — removing weak, rushed, or poorly designed projects. Interestingly, some teams are not giving up entirely. For example, Champions Ascension is restructuring and pivoting to REACH Labs to explore new directions.

Eternal League to Launch on Epic Games Store

Eternal League, an action-packed roguelike title, is set to launch its Web3-integrated version on the Epic Games Store this June. The game features NFT integration and the EST token, running on the Immutable zkEVM blockchain. Unlike earlier Web3 games that prioritized earning over gameplay, Eternal League focuses on fun, challenge, and immersive lore. The blockchain features are optional, allowing Web2 and Web3 players to coexist. The goal is to prove that Web3 can enhance — not replace — traditional gaming experiences.

Off The Grid Coming to Steam

Off The Grid, a cyberpunk-style battle royale game, will officially debut on Steam in June 2025. Developed by Gunzilla Games, it offers a blend of PvP and PvE gameplay within a story-driven world. It supports cross-platform play across PC, Xbox Series X/S, and PlayStation 5. While blockchain elements exist, players can choose whether to interact with them or not. This flexible approach aims to reduce friction, attract mainstream gamers, and offer a smoother entry into Web3 mechanics.

Savanna Survival Reaches 3.5 Million Users

Savanna Survival has become one of the most successful Web3 survival games to date. Built on the Kaia blockchain and distributed through LINE’s Dapp Portal, it recently surpassed 3.5 million users. The game combines traditional survival gameplay — such as gathering, crafting, and clan-building — with blockchain-based economies where players can trade land, characters, and resources. Its rise is especially strong in Southeast Asia, thanks to localized features and a user-friendly onboarding system designed for non-crypto players.

Immutable Highlights Gaming’s Role in Web3

According to Robbie Ferguson, co-founder of Immutable, gaming is the strongest use case for Web3 right now. Unlike most decentralized apps, Web3 games can attract and retain daily active users — even without incentive schemes like token airdrops. Ferguson points out that games offer emotional engagement and meaningful digital ownership, making them the ideal gateway to blockchain adoption. Immutable’s ecosystem, featuring titles like Gods Unchained and Guild of Guardians, shows that scalable, sustainable Web3 gaming is already becoming a reality.

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