Yield Guild Games (YGG) has announced the closure of its gaming publishing division, YGG Play, and the layoff of 35 employees. All freed-up resources will be redirected toward developing a data economy for artificial intelligence (AI). This decision is not just an optimization but a signal of shifting priorities amid a prolonged bear market.
Starting August 1, the company will shut down the YGGPlay.fun website, along with all associated launchers and games, including LOL Land and Waifu Sweeper. However, the Web3 versions of GIGACHADBAT and Ragnarok Breaker will continue to exist within their respective development studios.
Why YGG Play Became Unprofitable
The decision was made against the backdrop of an ongoing downturn in the crypto market. The liquidity crisis in October last year led to the liquidation of over $19 billion in margin positions within a single day. Selling pressure persists into 2026, with Bitcoin (BTC) repeatedly falling below the $60,000 mark, and many major altcoins losing 80% or more of their value.
Despite challenging market conditions, YGG Play had shown some success: in the first quarter of 2026, the division's revenue reached $9 million. However, the market crash on October 10 fundamentally changed the behavior of retail traders. The company does not expect the crypto and Web3 gaming markets to recover to their previous volumes in the foreseeable future.
"Moreover, the entire gaming publishing market is currently in a very difficult state. Given this combination of circumstances, we have to acknowledge that YGG Play cannot remain commercially viable in the current situation," the company stated in an official announcement.
New Direction: AI and Data Economy
YGG views this step as necessary to focus efforts on a more stable and long-term business. The company's mission is to create opportunities through technology, and all resources will now be directed toward the data economy for artificial intelligence, starting with a B2B product based on gaming datasets.
"This choice brings us directly into the global AI dataset market—an industry valued at $3.9 billion according to Grand View Research, with demand for specialized data types just beginning to grow," the company noted.
YGG joins a number of cryptocurrency companies that, amid the market downturn, are either downsizing their businesses or pivoting to AI development. In May, the online analytics platform Dune Analytics announced a 25% staff reduction, focusing on AI development and working with institutional on-chain data.
My comment as an analyst: YGG's shift from gaming to AI datasets is not panic but a pragmatic calculation. The market for gaming NFTs and Web3 gaming is overheated and oversaturated, while demand for high-quality, labeled data for training neural networks is only growing. YGG is leveraging its main asset—accumulated experience interacting with thousands of players—and monetizing it in a much more sustainable niche. For investors, this is a positive signal: the company is not just cutting costs but reorienting toward a growing market with predictable demand.