The decline of play-to-earn (P2E) games is being seen as a necessary correction and an opportunity for industry renewal, according to Tobin Kuo, CEO of Seraph. Kuo highlights that P2E games have historically prioritized financial rewards over engaging gameplay, resulting in a focus on extraction rather than entertainment. This shift is prompting developers to create games that remain enjoyable without relying on token incentives. Recent data from Q2 2025 indicates a 93% drop in funding for blockchain games and a significant decrease in daily active users, with over 300 Web3 games shutting down. Regulatory measures, such as India's ban on monetary-based online gaming, are further steering the industry away from gambling-like models. Kuo stresses the importance of developing genuinely entertaining content to revitalize the GameFi sector.
P2E Game Decline Spurs Industry Shift Towards Quality Gameplay
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