Web3 games shuttered, Axie Infinity founder warns more will ‘die’: Web3 Gamer

CoinTelegraph

by Ciaran Lyons

January 31, 2026

AI-Generated Deep Dive Summary

The founder of Axie Infinity, Jeff "JiHoz" Zirlin, has issued a stark warning about the future of Web3 gaming, predicting that many studios will fail in 2026 due to financial struggles and complacency. Zirlin emphasized that teams are not taking the current challenges seriously enough, with funding runways shrinking across the sector. A recent survey by the Blockchain Gaming Alliance revealed that 32.6% of developers cite cash shortages as their biggest challenge. This grim outlook comes as Zirlin also admitted that Axie Infinity plans to take more risks in 2026 to reignite the excitement seen during its peak in 2021. Meanwhile, NBA legend Scottie Pippen is preparing to launch a new basketball-themed game called *Don’t Drop The Ball*, which features Bitcoin and digital innovation as key themes. The game includes subtle nods to Bitcoin’s creator, Satoshi Nakamoto, such as graffiti and easter eggs throughout the game world. Pippen explained that these references are meant to honor "builders who change the game," akin to Satoshi's impact on cryptocurrency. Despite his personal connection to Bitcoin, Pippen revealed that he was asked by Michael Saylor to avoid discussing it publicly. The gaming industry’s challenges extend beyond financial struggles, with many Web3 games shutting down in 2025 due to market saturation and operational difficulties. Examples include *Ember Sword* on Ethereum, *Nyan Heroes* on Solana, and *Pirate Nation*, all of which failed to sustain their operations. These closures highlight the high stakes and competitive nature of the space, where success is rare and failures are common. Zirlin’s warning underscores the precarious state of Web3 gaming, with many projects struggling to survive. His call for bold moves in 2026 suggests that innovation and risk-taking will be crucial for long-term

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Originally published on CoinTelegraph on 1/31/2026