Segment from The Drop Newsletter

To read full editions, subscribe.

Battlebound Shuts Down

Another blockchain gaming studio, Battlebound, is closing its doors.

The studio was overseeing two games:
– Evaverse: a metaverse game featuring an EVA token, which is down over 99% from its all-time high.
– Anterris: an in-development RPG.

Previously, Battlebound raised $4.8 million in seed funding in 2022 from investors like a16z and Dapper Labs, in addition to another $3 million through NFT sales.

Despite having a budget for an “AA game” (equivalent to two indie games), it lacked the resources for more extensive “AAA games,” which can exceed $100 million in budget.

Company’s Statement

The closure comes “despite the recent traction we’ve been building for four years with a lean, scrappy team,” said Battlebound in a post.

They emphasized how they managed to “do more with less” and sustain operations while seeking funding, but ultimately cited challenging market dynamics for their shutdown.

On LinkedIn, CEO Adam Hensel expressed gratitude for the players who participated in the final playtest, stating it made their efforts worthwhile. He previously worked for Riot Games, known for League of Legends.

Broader Context

This shutdown highlights a trend where ambitious game studios struggle to secure ongoing funding. Other blockchain-based projects, such as Dauntless and Eternal Dragons, have also been canceled recently. According to blockchain game tracker BigBlockchainGameList, 60 crypto games were discontinued in Q1 of 2024, though tracking is challenging.

Other studios, like Midnight Society, also failed to continue projects amid financial struggles and controversies relating to co-founders, leading to their shutdown.

Industry Trends

Data from Game7 indicates a 36% decrease in new blockchain game announcements from last year to 2023, illustrating that the market is slowing down, which may not necessarily be detrimental to the ecosystem.

> Funding round sizes for Web3 gaming over time, from Game7