Gala Games Shuts Down ’Walking Dead’ NFT Game and Ends IP Partnerships as Web3 Gaming Shifts to Original Content
Gala Games announced the closure of its blockchain-based game ’The Walking Dead: Empires’, ending its partnership with AMC as part of a strategic shift away from expensive third-party intellectual property and towards original Web3 gaming content. Players will be compensated for their NFT assets, with Gala pledging to provide alternative NFTs and reuse acquired assets in future projects. This follows the peak period where some in-game NFTs traded for as much as $67,000. Community backlash has arisen over declining NFT valuations and concerns about the adequacy of compensation. Additionally, ’Flappy Moonbird’, a blockchain iteration of the popular ’Flappy Bird’, is ending its crypto integration, reflecting waning interest in applying blockchain to classic mobile games. These developments underscore increased caution around licensed IP blockchain games and signal an industry pivot toward in-house content. The market for blockchain games and NFTs may experience a shift in investor sentiment and expectations, as firms adapt their strategies to the evolving play-to-earn and NFT gaming landscape.
Bearish
The shutdown of ’The Walking Dead: Empires’ and other IP-based blockchain games by Gala Games is bearish for both the project’s NFTs and the broader blockchain gaming sector. It signals investor concern about the long-term viability and stability of games heavily reliant on external intellectual property. The negative community reaction, particularly around declining NFT values and compensation measures, may further reduce confidence among traders and investors in similar blockchain/NFT gaming ventures. The strategic shift toward original content development, although potentially positive in the long run, creates additional short-term uncertainty and could prompt selloffs or decreased activity around ecosystem assets. As historic data suggests, such closures typically depress short-term asset prices and trader sentiment in the affected crypto ecosystems.