San Francisco, Oct 16 (IANS): The crypto gaming industry has secured approximately $600 million in funding during the third quarter (Q3) of this year despite facing challenges in the broader crypto and gaming markets, a new report has shown.

Even though this is a substantial amount, it represents a 38 per cent decline from the $973 million invested in crypto gaming in the second quarter (Q2) of 2023, according to crypto data firm DappRadar.

The overall investment in crypto games for the year is estimated to be around $2.3 billion.

"This quarter witnessed Web3 gaming projects amassing a notable $600 million, propelling the year’s tally to $2.3 billion. While this constitutes just 30 per cent of the funds pooled last year, it’s essential to keep in perspective the distinct market dynamics of 2023," the report said.

The year 2023 has proven to be a difficult year for game studios both inside and outside of the crypto sphere. According to GamesIndustry.biz, about 6,100 jobs have been lost in the gaming business last year.

Established companies like Epic Games, Telltale Games, and Team17 have all had to lay off employees in the past month.

Gaming-focused crypto companies such as Star Atlas studio ATMTA and Otherside developer Yuga Labs have also undergone staff reductions this year.

According to the experts, Q3 has provided a nuanced view into the multifaceted world of blockchain gaming.

"With investments flowing into the sector reaching $600 million this quarter and cumulatively $2.3 billion for the year, it’s evident that stakeholders see substantial potential in the space," the report stated.