Pudgy Penguins NFT Game ‘Pudgy Party’ Shuts Down Less Than a Year After Launch – Decrypt

Pudgy Party, the Pudgy Penguins-themed mobile battle royale party game, was suddenly shut down on Friday after less than a year and is no longer available for download across iOS and Android.

According to a post on the game’s official X account, the crypto-native brand decided to shut down the game in an effort to divert more focus towards its other active game, Pudgy World.

“Pudgy World continues to grow rapidly, delivers one of the most fun and novel web experiences out there, and being wholly ours, has everything we need to make it the flagship gaming product of the Pudgy Penguins universe,” the team wrote.

Pudgy Party—which was co-developed with FIFA Rivals and NFL Rivals maker Mythical Games—launched globally last August, putting a spin on multiplayer party game formula of Fall Guys, challenging players to navigate chaotic obstacle courses faster than their rivals.

While familiar at its core, Pudgy Party put a crypto spin on the experience by letting players mint and trade tokenized in-game items as NFTs. With its entertaining competitive gameplay, approachable design, and optional NFT hook, Pudgy Party was named the 2025 Game of the Year by Decrypt‘s GG.

But while Pudgy Penguins said the game had racked up millions of downloads and was gaining traction, CEO Luca Netz told community members on Friday that the company had lost millions trying to support the project, per an X thread from someone present on the call. A Pudgy Penguins spokesperson confirmed the accuracy of that statement to Decrypt.

Pudgy World, described by developers as the “coziest place on the internet,” is an online playground and hangout space that has drawn comparisons to the classic Club Penguin game, albeit with user-owned items tokenized as NFTs on Abstract, an Ethereum layer-2 network launched by the parent company of Pudgy Penguins.

Decrypt reached out to Mythical Games for comment on the closure of Pudgy Party, but did not immediately receive a response.

Pudgy Penguins token PENGU is up more than 10% on the day at a recent price of $0.0072 amid a broader market rebound, though it has fallen nearly 15% in the last month.

Pudgy Party joins a slew of prominent blockchain-powered games that have shut down and ceased development in 2025 and so far in 2026, including titles like Deadrop, Nyan Heroes, and MetalCore. Many developers complained of falling interest from players and an inability to raise further funding to continue building out their games.

On Sunday, the developers of another notable crypto game—Fishing Frenzy on Ethereum gaming network Ronin—said it would also close down and end development. That game will go offline on June 25.

“Despite our best efforts, we were ultimately unable to prove our thesis on crypto gaming and could not find product-market-business fit,” the Fishing Frenzy developers wrote on X. “We spent a lot of time in the past year testing multiple directions and audiences, but the results did not give us enough conviction in a viable path forward.”