What the numbers say: A recent report from the Web3 data platform DappRadar has shown that blockchain gaming continued to dominate the decentralized application (dApp) ecosystem in terms of user interest in Q2 2023. The industry received a 36% share of the cake and was followed by decentralized finance (DeFi), social, and NFT categories, respectively. However, the games in the dApp ecosystem saw a decline from its 44% market share within the previous quarter, while DeFi increased its portion. Relevance: The decrease in user interest in blockchain gaming has caused several traditional gaming companies to move away from the industry. Most recently, Sega, the Japanese video game giant behind popular games like Sonic The Hedgehog, announced it partly abandoned its plans to develop blockchain-based games. The firm also decided not to share its biggest franchises with third-party blockchain projects to avoid devaluing its content. The company was previously regarded as one of the most loyal advocates of blockchain gaming when the category was on the rise. Brands that should care: Over the past few months, several other gaming companies, including France-headquartered video game publisher Ubisoft, also pulled back their investments in Web3-based games, citing low demand. |
