The GameFi market continues to be volatile, and another victim of this storm is one of the genre's flagships — Yield Guild Games (YGG). The company has announced the complete closure of its publishing division, YGG Play, which will result in the layoff of 35 employees. The freed-up resources will be fully redirected toward developing a data economy for artificial intelligence (AI).
The decision was made amid a prolonged crisis that began with the October market crash last year, which wiped out over $19 billion in leveraged positions. Selling pressure has not eased in 2026 either. Bitcoin (BTC) has repeatedly broken below the $60,000 level, and most major altcoins have lost 80% or more of their all-time highs.
YGG Play showed promising results: in the first quarter of this year, revenue reached $9 million. However, according to management estimates, the market shock on October 10 fundamentally changed the behavior of retail traders. The company sees no prerequisites for the recovery of crypto and Web3 gaming markets to their previous volumes in the foreseeable future.
Strategic Pivot: From Games to Data
In an official statement, YGG emphasized that YGG Play can no longer remain commercially viable in the current market conditions. The YGGPlay.fun website, launchpad, and games, including LOL Land and Waifu Sweeper, will be shut down by August 1. Notably, the Web3 versions of GIGACHADBAT and Ragnarok Breaker will continue operating in their respective developer studios.
Now, all of the company's energy and capital will be directed toward creating a B2B product based on gaming datasets. YGG is entering the global AI dataset market, which, according to Grand View Research, is valued at $3.9 billion. Demand for specialized data types is just beginning to grow, and YGG intends to carve out its niche here.
This move fits into a broader trend: earlier, the on-chain analytics platform Dune Analytics announced a 25% staff reduction, focusing on AI development and institutional data work. YGG joins the ranks of cryptocurrency companies that are forced to either shrink or radically change their profile to survive.
Cryptalist Analytics: YGG's decision is not just a forced measure but a clear signal of shifting priorities in the industry. The GameFi market, overheated by speculative capital, has faced a harsh reality as liquidity dried up and users lost interest in "play-to-earn" games. The AI data economy, on the other hand, offers a more stable and long-term monetization model. YGG is making a pragmatic bet, abandoning a beautiful but unprofitable idea in favor of a real B2B business. This is a painful but likely the only viable path for survival in the current bear cycle.