There was a time when the metaverse and NFTs made investors dream of a new digital frontier. Blockchain promised to revolutionize video games and virtual property. However, this enchanting universe has often turned into a financial roller coaster. There are more descents than ascents. Today, Pudgy Party, a very promising mobile game, abruptly closes its doors after only a few months of existence.
In brief
- Pudgy Party game closes after one year despite one million downloads.
- The game only had 200 to 300 active players at the end of its life.
- Pudgy Penguins lost several million dollars on this very expensive project.
- Pudgy World now becomes the brand's new main flagship game.
A mobile adventure that cost millions without convincing
Launched in August 2025 with lots of advertising, Pudgy Party had everything to succeed. This battle royale game, developed with Mythical Games and associated with PENGU, quickly reached the top spot on the App Store. It exceeded one million downloads and was even crowned “game of the year” by Decrypt’s GG. However, behind these figures, the reality is much darker.
According to notes from an internal meeting reported by chefjames.eth, the game only had 200 to 300 active players at the end of its life. Losses already amounted to several million dollars. Continuing the adventure would have required an additional investment of 2.5 million. The CEO, Luca Netz, admitted to having been “super ambitious” and fully accepts this difficult decision.
“ I was super ambitious and thought it was one of the best Web3 games built “, he said during the community meeting on June 14 (Source: chefjames.eth, X).
The team tried to save the project by injecting almost a million additional dollars, but without success.
Pudgy World, the new life of the NFT brand
There closure of Pudgy Party is not a simple abandonment. It is part of a much broader vision of the Pudgy Penguins project. The brand no longer wants to be just a collection of NFTs.
It is building a real consumer ecosystem with physical toys sold at Walmart and Target. The partnerships with Visa and Manchester City bear witness to this all-consuming ambition.
Pudgy World now becomes the gaming showcase for this strategy. This browser game, free and without downloading, aims to attract a massive audience. Its creators took care to hide the blockchain elements so as not to frighten newbies. With 15,000 to 20,000 daily users, the game already seems to be finding its audience.
Pudgy World continues to grow rapidly and offers one of the most fun and innovative web experiences. Source: @PlayPudgyParty
The game offers 12 cities, narrative quests and mini-games in a universe called “The Berg”. It’s a bold attempt to move from a crypto niche to a global entertainment brand. However, this strategic pivot has a human cost.
Crypto community angry, trust threatened
The community is not angry. Players have invested time and money in Pudgy Party. Today, they are demanding accountability. The lack of clear compensation or transfer of items to Pudgy World fuels anger.
“ Imagine if you were one of those people who bought a $5,000 Power Pudgy skin… », asks a user on X (Source: Sasquatch, @sas0xatch).
Another bitterly laments: “ You have ignored our feedback over and over again and now you are shutting everything down. Shame. » (Source: Foxie1, @Macieyo193416).
Loss of trust could tarnish the brand's image in the long term.
However, the PENGU token rose more than 10% after the announcement, a sign that investors support the strategic pivot. The players remain on the floor.
Key figures of the closure
- 1 million downloads for Pudgy Party;
- Only 200 to 300 active players at the end of their life;
- Several million dollars in losses already recorded;
- 15,000 to 20,000 daily users for Pudgy World;
- PENGU price: 0.007207 dollars currently.
The crypto gaming industry is going through a tricky time, but NFTs are not completely abandoned. New SEC Chairman Paul Atkins recently clarified their legal status in the United States. This change opens up more serene prospects for projects that wish to innovate without fearing regulatory wrath.
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