GameFi

Meta is reviewing budget reductions of up to 30% for its Reality Labs division in 2026, Bloomberg reported, citing sources familiar with internal discussions. The metaverse unit has accumulated losses exceeding $70 billion since 2021. Metaverse-linked crypto tokens have declined sharply, with the sector's total market capitalization falling to under $3.4 billion from more than $500 billion at the start of 2025.

Gaming activity on Web3 platforms reached 27.9% of total on-chain engagement in October, the highest share recorded this year. NFT trading volume increased 30% to $546 million across 10.1 million transactions. Decentralized finance total value locked declined 6.3% to $221 billion amid market liquidations and a $93 million loss at Stream Finance.

Blockchain gaming's pledge of "true ownership" has largely failed to materialize as game shutdowns expose regulatory gaps. Magnus Söderberg, CEO of Triolith Games, warns that Web3 studios face steep compliance costs when in-game assets become tradeable for fiat currency. This triggers financial service regulations that many developers cannot afford, forcing platforms to choose between multi-million dollar compliance infrastructure or unregulated operations that carry significant legal risks.