Shillong, October 16: A recent report reveals that the crypto gaming industry managed to secure approximately $600 million in funding during the third quarter (Q3) of this year, despite facing challenges in the broader crypto and gaming markets.
As per IANS, this substantial funding, however, marks a 38% decrease from the $973 million invested in crypto gaming during the second quarter (Q2) of 2023, as reported by crypto data firm DappRadar.
The overall investment in crypto games for the entire year is estimated to be around $2.3 billion. The report notes, “This quarter witnessed Web3 gaming projects amassing a notable $600 million, propelling the year’s tally to $2.3 billion. While this constitutes just 30% of the funds pooled last year, it’s essential to keep in perspective the distinct market dynamics of 2023.”
The year 2023 has posed challenges for both traditional and crypto-focused game studios, with significant job losses in the gaming industry, amounting to around 6,100 lost jobs last year. Established companies like Epic Games, Telltale Games, and Team17 have been forced to lay off employees in recent months.
Even gaming-focused crypto companies, such as Star Atlas studio ATMTA and Otherside developer Yuga Labs, have had to undergo staff reductions this year. Despite these challenges, the report suggests that Q3 provides a nuanced view into the multifaceted world of blockchain gaming, highlighting that “stakeholders see substantial potential in the space” with investments reaching $600 million in the quarter and $2.3 billion cumulatively for the year.