Axie Infinity, developed by Sky Mavis, is a prominent Web3 game that has faced several internal weaknesses hindering its competitive edge in the blockchain gaming industry. These weaknesses include leadership instability, security vulnerabilities, economic imbalances, and governance challenges. This report will cover:

• The impact of high turnover and workforce reductions on the team's ability to execute its vision.
• The recurring security breaches, such as the $600 million Ronin hack, and their implications for player trust.
• The economic challenges, including token inflation and reliance on new entrants, that threaten the game's sustainability.
• The governance issues, including delays in decentralization and the influence of 'whales,' that undermine community trust.
• The lack of strategic value from key partnerships and the negative impact of exploitative guild practices.