Pudgy Penguins shuts Pudgy Party game, pivots to Pudgy World
In brief
- Pudgy Party shut down Friday after launching in August 2024, removed from iOS and Android app stores.
- CEO Luca Netz cited millions in losses, prompting pivot to Pudgy World online playground.
- Pudgy World features user-owned NFT items on Abstract, an Ethereum layer-2 network.
- Pudgy Party joins recent blockchain game shutdowns including Deadrop and Nyan Heroes.
- PENGU token rose 10% intraday but fell nearly 15% over the past month.
The shutdown and pivot
Pudgy Party was shut down on Friday and is no longer available for download on iOS and Android. The game challenged players to navigate chaotic obstacle courses faster than rivals, putting a spin on the multiplayer party game formula popularized by Fall Guys. Despite winning recognition—Pudgy Party was named the 2025 Game of the Year by Decrypt's GG—the project couldn't sustain itself financially.
CEO Luca Netz told community members on Friday that the company had lost millions trying to support Pudgy Party. The decision reflects a broader struggle in blockchain gaming to achieve sustainable unit economics.
Pudgy World as the new focus
The Pudgy Penguins team is now concentrating resources on Pudgy World, which it describes as the "coziest place on the internet." Pudgy World is an online playground and hangout space that lets players own in-game items as NFTs. These items are tokenized on Abstract, an Ethereum layer-2 network launched by the parent company of Pudgy Penguins.
The shift mirrors a broader industry pattern. Pudgy Party joins other blockchain-powered games that have shut down in 2025 and 2026, including Deadrop, Nyan Heroes, and MetalCore. Fishing Frenzy on Ethereum gaming network Ronin announced it would close down and end development, going offline on June 25.
Market reaction
The shutdown hasn't tanked confidence in the broader Pudgy Penguins ecosystem. PENGU token was 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.
