The blockchain gaming sector has experienced a wave of shutdowns, with several high-profile Web3 games ceasing operations in recent days due to funding challenges and market conditions. Nyan Heroes, a Solana-based shooter game featuring cats in robot suits, announced its closure after the development studio was unable to secure additional capital. The game generated over 1 million players across four play tests, with more than 250,000 wishlists on the Epic Games Store and Steam. The NYAN token has dropped to $0.006, nearly 99% down from its peak, and the studio is exploring acquisition options for its intellectual property. Other Web3 games that have recently shut down despite raising significant funds include Xterio ($80 million), Blast Royale ($5 million), and TreasureDAO ($3 million). Nyan Heroes itself had raised $13 million. These closures reflect the challenges faced by blockchain gaming projects in achieving product-market fit and sustainable revenue, even as some games reported strong user engagement during play tests. Despite these setbacks, some projects continue to launch. Nexon has launched MapleStory N and its $NXPC token on an Avalanche-based Layer 1 blockchain, with the open beta now live. MapleStory N has seen notable activity, including a level 209 character selling for $4,200, $100 million invested in the project, NXPC listed on BinanceAlpha, a Skynet Community Score of 95.15, and over 12,000 new followers in 30 days. While many Web3 games have struggled, there are examples of ongoing success. NFL Rivals, built on Polkadot technology, has achieved a 4.5 out of 5 review score and millions of downloads. Industry observers point to factors such as high marketing and development costs, delayed token launches, and a lack of unique gameplay as contributing to the failures. Meanwhile, new initiatives like the Base Batches Messaging Buildathon are encouraging developers to innovate in areas such as on-chain gaming and messaging.