The state of blockchain gaming in the first quarter of 2025 has shown a “mixed bag” of outcomes, with a higher volume of deals but a notable decrease in investment amounts, as reported by a blockchain analytics platform.
Web3 gaming initiatives secured $91 million during Q1 2025, which represents a 71% decline from the preceding quarter of 2024 and a 68% drop compared to the same period last year. This information was highlighted in a recent report released on April 10.
An analyst noted that these figures reflect “the increasing pressure on early-stage startups and suggest that 2025 may be more difficult than previous years — unless broader market conditions improve.”
Another reason for the decline in investments within the blockchain gaming sector is that investors are increasingly turning their attention toward real-world assets and artificial intelligence.
Conversely, the number of closed deals related to blockchain gaming saw a 35% increase from the previous quarter.
Web3 gaming projects raised $91 million for the quarter, reflecting a 71% decrease from Q4 2024.
The increase in deals indicates that “while investors are now writing smaller checks, they continue to engage with a broader array of projects — suggesting sustained interest, though with more cautious financial commitments.”
Web3 gaming investors focus on infrastructure
The majority of funding for Web3 gaming in Q1 was directed towards infrastructure-oriented projects, particularly those aimed at scalable gaming solutions.
The emphasis on infrastructure investment suggests that “investor confidence in the long-term prospects of Web3 gaming remains strong,” with notable projects emerging during the quarter, such as those initiated by MARBLEX and The Game Company.
MARBLEX, the blockchain gaming division of the South Korean developer Netmarble, has plans for a Semi-Publishing Model designed to support a wider range of Web3 games, backed by a joint fund of over $20 million with Immutable.
The bulk of funding for Web3 gaming last quarter was allocated to infrastructure-focused initiatives.
At the same time, a Dubai-based startup, The Game Company, which specializes in blockchain-based cloud gaming, successfully secured $10 million in funding on February 6 to develop a platform enabling users to play any game on any device.
As the Web gaming landscape evolves, there is “a distinct movement towards quality, innovation, and interoperability — whether through enhanced gameplay, new identity frameworks, or AI-driven mechanics.”