YGG scales back its gaming direction: 35 layoffs and a shift towards an AI-driven data economy
Yield Guild Games (YGG) has officially announced the closure of its game development division, YGG Play. As part of the restructuring, the company will lay off 35 employees and redirect all resources to the data economy for artificial intelligence (AI).
Starting August 1, the YGGPlay.fun website, launchpad, and several games, including LOL Land and Waifu Sweeper, will be shut down. Meanwhile, the Web3 versions of the projects GIGACHADBAT and Ragnarok Breaker will continue operating under their respective development studios.
Why is YGG Play winding down its business?
The decision is driven by harsh market conditions. The prolonged downturn in the crypto market, exacerbated by the October liquidation crisis totaling over $19 billion, has dealt a devastating blow to retail trading. Bitcoin has repeatedly fallen below $60,000, and many altcoins have lost 80% or more of their value.
Despite YGG Play showing decent results in the first quarter of 2026—with revenue reaching $9 million—the market crash on October 10 fundamentally changed user behavior. The company does not expect the crypto and Web3 gaming markets to recover to their previous volumes in the foreseeable future.
"The entire gaming publishing industry is currently going through tough times. Under these circumstances, we are forced to acknowledge that YGG Play cannot remain commercially viable in the current situation. Therefore, the decision has been made to close the business division," the team stated in an official announcement.
New direction: AI and data economy
YGG considers this move strategically correct for focusing on a more stable and long-term business. The company is fully pivoting to 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 that Grand View Research estimates at $3.9 billion. Moreover, demand for specialized types of data is just beginning to grow," YGG representatives emphasized.
YGG joins a growing number of cryptocurrency companies that are downsizing or shifting focus to AI development amid the market downturn. Previously, in May, on-chain analytics platform Dune Analytics announced a 25% staff reduction, concentrating on AI development and working with institutional on-chain data.
Analyst comment: YGG's decision is not just a forced measure but a clear market signal. The Web3 gaming sector, once considered a key driver of mass cryptocurrency adoption, has encountered a fundamental problem: a lack of sustainable demand from retail users. The shift to AI datasets seems logical but is an extremely competitive move. The question remains whether YGG can effectively monetize its developments in this new niche.