Despite an overall rise in venture capital (VC) spending, Web3 gaming is not benefiting from this trend. Analyst Eric Bellomo of PitchBook notes that while deal values increased year-over-year, the number of deals has dropped 9.5%, aligning with figures from 2018-2019. The excitement around Web3 gaming has faded, as many heavily funded startups have failed to create breakout hits. Investors prioritize if a game is enjoyable over the underlying technology. The previous cycle's focus on Web3 and NFTs boosted gaming investment, but this momentum has not sustained. Bellomo forecasts a prolonged period of subdued VC interest in gaming rather than an immediate resurgence, highlighting that a solid game experience will dictate future successes in the market.

Source šŸ”—