Another major restructuring is taking place in the world of cryptocurrencies. The Yield Guild Games (YGG) project has announced the closure of its gaming division, YGG Play. As part of this decision, 35 employees will be laid off, and all freed-up resources will be redirected toward developing a data economy for artificial intelligence (AI). This is not just a downsizing, but a strategic pivot that signals profound changes in market priorities.
Why are games no longer a priority?
The main reason is the prolonged and deep downturn in the crypto market. According to my data, the crash on October 10 last year led to the liquidation of over $19 billion in leveraged positions within just 24 hours. The bearish trend continues this year: Bitcoin (BTC) has repeatedly fallen below the $60,000 mark, and many leading altcoins have lost 80% or more of their value.
Against this backdrop, YGG Play, which reported revenue of $9 million by the end of the first quarter of 2026, faced a radical shift in the behavior of retail traders. The project's leadership concluded that the crypto and Web3 gaming markets will not recover to their previous volumes in the near future. As the company stated, YGG Play can no longer remain commercially viable under current conditions.
New focus: data for AI
YGG views this move as a logical concentration of efforts on a more stable and long-term business. The entire team will now focus on creating a B2B product based on gaming datasets. According to Grand View Research, the global AI dataset market is already valued at $3.9 billion, and demand for specialized types of data is only beginning to grow.
YGG joins a growing list of cryptocurrency companies that, amid the market downturn, are either scaling back their businesses or pivoting to artificial intelligence. Earlier, in May, the on-chain analytics platform Dune Analytics announced a 25% staff reduction, focusing on AI development and institutional data work.
My analysis: This is a logical step. The GameFi sector is overheated and experiencing a crisis of confidence after a series of failed projects. Meanwhile, the AI market is showing explosive growth. For YGG, this is not just about survival, but an attempt to carve out a new, more promising niche at the intersection of gaming data and machine learning. The only question is whether they can convert their gaming experience into a sought-after B2B product.