TechFlow news, December 11 — According to Cointelegraph, Web3 gaming studio ChronoForge announced it will cease all services on December 30. The studio was developing a multiplayer action role-playing game centered on on-chain asset ownership.
In its statement, ChronoForge cited "numerous challenges," including funding shortages that forced founders to personally finance development since July and an 80% staff reduction. The team has continued operations without a marketing budget, with revenues below sustainability levels, loss of collaborating developers, and amid weak market sentiment for Web3 gaming.
According to a report by blockchain gaming platform ChainPlay, as of last year's end, 93% of Web3 gaming projects were considered defunct, with GameFi token prices down 95% from their all-time highs. More than half of the venture capital firms investing in GameFi have incurred losses.
