Ember Sword, a Web3 crypto game that raised over $7 million and generated more than $11 million from land NFT sales, has officially shut down after seven years of development. The game underwent development across three blockchains and utilized at least five different game engines. Despite raising around $20 million last year, Ember Sword's closure highlights the challenges facing the Web3 gaming sector, which has seen multiple studios and games shutting down recently. The broader Web3 gaming industry is experiencing a downturn, with some projects still in development but facing skepticism about their viability. One notable exception is Aurory, which is progressing with a beta release on Android and iOS, a strong PvP community, and plans for a full PvE launch later this year. The closures underscore the high costs and risks associated with developing Web3 games, with some industry observers suggesting that substantial capital is required to sustain these projects.