Web3 Gaming Shifts Toward Sustainability as Confidence Returns: BGA

The blockchain gaming sector is transitioning to more sustainable economic models as market sentiment improves and matures, according to a report from the Blockchain Game Alliance (BGA).

Key Takeaways

The blockchain gaming industry is moving towards sustainable economics with a renewed sense of optimism.
A recent survey indicates a rebound in confidence among gaming professionals, with 65.8% feeling positive about the future.
Significant shifts in focus are now directed towards developing high-quality games and stable revenue models rather than relying solely on token economics.
Past events highlighted the difficulties faced in the Web3 gaming landscape, with funding dropping sharply and a majority of games failing.
Regulatory changes and the adoption of stablecoins are pivotal in helping the industry recover and thrive.

Web3 Gaming Shifts to Sustainability as Confidence Returns: BGA

Improved Sentiment Amidst Transition

The BGA shared its annual industry report on Wednesday, noting that the Web3 gaming sector is "moving beyond its speculative origins toward a more operationally disciplined, product-led future." The report indicates a distinct improvement in sentiment, as optimism within the sector rose from a low of 65.8% following a survey of over 500 blockchain gaming professionals. This shift signals a transition from traditional token economics toward more sustainable revenue models.

The report emphasizes that future growth will rely heavily on creating high-quality games, robust revenue frameworks, and payment systems that facilitate real-world commerce on a larger scale.

Clear regulations are viewed positively by industry experts. Source: BGA

Challenges of Web3 Gaming

The Web3 gaming industry experienced a significant downturn from the peak enthusiasm of 2021, which was energized by the play-to-earn (P2E) trend and speculative investment. By 2024, following the failure of many P2E models and a decline in investor confidence, funding dried up, causing numerous studios to shut down and damaging their reputations.

Funding for the sector plummeted dramatically from approximately $4 billion in 2021 to only $293 million in 2025, compelling many teams to adopt leaner, self-sufficient operations. Notably, major investment firms halted all new investments in Web3 gaming, and token prices for various projects fell by over 90% from their peak values. Reports indicated that between 80% and 93% of Web3 games did not succeed, with many only lasting for a few months despite studios raising significant amounts of capital without the means to sustain their operations.

Recovery on the Horizon

The BGA report identifies several recent developments contributing to the recovery of this struggling sector, including regulatory changes and a rise in the acceptance of stablecoins.

Yat Siu, co-founder of Animoca Brands, pointed out that new crypto-friendly regulations in the United States have alleviated the burden on companies, allowing them to launch tokens without having to create nonprofit foundations.

The report also highlights the transformative role of stablecoins in Web3 gaming, offering gamers quick, affordable, and borderless transactions without the volatility linked to other cryptocurrencies.

Moreover, nearly 30% of survey respondents noted that the launch of high-quality games is crucial for the industry’s growth. Andrew Sorokovsky, Immutable’s vice president of global sales, emphasized that, "despite the negative headlines, blockchain gaming is now one of crypto’s most proven sectors — where quality projects are flourishing and real adoption is taking place."

Conclusion

As blockchain gaming reevaluates its strategies towards sustainability and quality, the sector is poised for potential growth. With optimistic sentiments on the rise, supported by favorable regulatory changes and innovative financial tools, the future appears brighter for Web3 gaming.