1.1 Industry Status

Traditional games follow a predictable death spiral:

1

Launch

2

Acquire users

3

Revenue decline

4

Shutdown

5

Repeat

Average mobile game D1 retention is only about 25–27%, dropping to 8% by D7 and below 3% by D30 (GameAnalytics, 2024).

83% of mobile games cease operations within three years (SuperScale).

93% of Web3 games are effectively dead, with an average active lifespan of just 4 months (ChainPlay, 2024).

The root cause is the distribution structure. Apple and Google take a 30% platform cut, and user acquisition costs have risen over 50% in the past decade. After platform fees, UA spending, and operational costs stack up, roughly 80% of revenue flows to channels and platforms — developers typically keep less than 20% in net margin. Meanwhile, nobody protects the time and money players invest in a game.

The result: developers lack the resources for long-term operation, player assets have no protection, and games don't last long enough — characters never get the chance to take root in players' hearts before the servers shut down.