Analysis: About 93% of GameFi projects fail, with funds shifting towards AI, RWA, and other fields

According to CoinDesk, data disclosed by the market-making company Caladan shows that about 93% of GameFi projects are now nearly dead, with token values down 95% from their peak in 2022, and game studio funding plummeting by 93% by 2025. Investment in Web3 games has almost completely dried up, with funds shifting towards AI, real-world assets, and Layer-2 infrastructure, leading to a collapse in the gaming industry. Even Animoca Brands, the most active investor in the Web3 space, has reduced its gaming business to about 25% of its portfolio and has started to pivot towards areas like stablecoins.

In addition, 63% of Web3 venture capital funding in 2022 flowed into the gaming sector, but by 2025 this proportion has dropped to single digits, with over 300 games announcing shutdowns, turning Web3 gaming into a cautionary tale about chasing speculation while neglecting product-market fit.