Key facts
- Yield Guild Games is shutting down its crypto game publishing arm, YGG Play.
- The closure is attributed to the crypto market downturn and broader video game industry struggles.
- 35 jobs will be eliminated.
- The company is pivoting to supply gaming-derived behavioral datasets for AI training.
- YGG Play's website, launchpad, and games will be retired by August 1.
Yield Guild Games (YGG) announced it is shutting down its crypto game publishing arm, YGG Play, and laying off 35 employees. The company cited the crypto market downturn and struggles within the broader video game industry as reasons for the closure, deeming the business commercially unsustainable.
YGG Play, which focused on building crypto-incentivized casual games, launched its own game LOL Land and had partnered with the Pudgy Penguins NFT brand. The unit reported over $9 million in lifetime revenue through the first quarter of 2026. However, the broader crypto gaming industry has faced significant challenges, with many blockchain-based games shutting down and investors avoiding crypto game studios.
Co-founder Gabby Dizon stated that the decision was market-driven and a testament to the team's talent. YGG Play's website, launchpad, and games like LOL Land and Waifu Sweeper will be retired by August 1, though two games will continue under their original developers. The company plans to redirect resources toward supplying data for artificial intelligence training, believing that player decision-making can generate valuable behavioral datasets.
With a treasury of $20.6 million in assets as of Q1, YGG expects its restructuring to extend its operating runway to four years. Yield Guild Games was a prominent player during the 2021 play-to-earn boom, notably supporting Axie Infinity through a scholarship program. Following the economic collapse of Axie Infinity and the decline of play-to-earn, YGG pivoted in 2024 to blockchain infrastructure for guilds before launching YGG Play in 2025.