YGG closes its gaming division and lays off 35 employees: betting on AI and the data economy
Yield Guild Games (YGG) has announced the winding down of its gaming publishing division, YGG Play, and the layoff of 35 employees. This strategic decision was made as part of a reallocation of resources towards the rapidly growing data economy for artificial intelligence (AI).
The closure will affect the YGGPlay.fun website, the launchpad, and several games, including LOL Land and Waifu Sweeper. The complete shutdown of these services is scheduled for August 1. Meanwhile, the Web3 versions of the projects GIGACHADBAT and Ragnarok Breaker will continue to operate within their respective development studios.
The reason is a deep crisis in the crypto gaming market. Despite YGG Play showing decent results at the beginning of the year — with first-quarter revenue reaching $9 million — the market crash on October 10 of last year, which resulted in the liquidation of over $19 billion in leveraged positions, fundamentally changed the behavior of retail traders. Selling pressure continued into 2026: Bitcoin (BTC) repeatedly fell below the $60,000 mark, and many leading altcoins lost 80% or more of their value.
YGG openly states that it does not expect the crypto and Web3 gaming markets to recover to their previous volumes in the foreseeable future. Under these conditions, YGG Play, according to management, cannot remain commercially viable.
New Focus: AI and Datasets
The company views this step as a necessary concentration on a more stable and long-term business. All freed-up energy and resources will now be directed towards the data economy for artificial intelligence. The first product in this direction will be a B2B solution based on gaming datasets.
The global AI dataset market, according to Grand View Research, is already valued at $3.9 billion, and demand for specialized types of data is only beginning to grow. YGG intends to carve out its niche in this industry by leveraging its accumulated experience and data from the gaming sector.
YGG joins a number of cryptocurrency companies that, amid the market downturn, are either scaling back their business or pivoting towards AI development. Earlier, in May, the on-chain analytics platform Dune Analytics announced a 25% reduction in its workforce, focusing on AI development and working with institutional data.
My analysis: This decision by YGG is not just a forced measure but a clear signal of a tectonic shift in the industry. The Web3 gaming sector, overheated by speculative capital, has proven to be the most vulnerable in a bear market. The shift to the AI sector, with its huge and growing demand for quality data, appears pragmatic and likely the only viable path for survival and growth in the current realities. The only question is how successfully YGG can convert its gaming experience into a competitive advantage in this new field.