Yield Guild Games, a prominent blockchain-based gaming organization, announced Monday the closure of YGG Play, its publishing arm focused on crypto-infused casual games. The decision comes amid a significant downturn in the cryptocurrency market and broader challenges facing the video game industry.
Strategic Shift
The closure signifies a retreat from a strategy that Yield Guild Games had actively promoted this year: the development of “casual degen” games. These were designed as bite-sized titles incorporating crypto incentives, aimed at crypto enthusiasts who may not identify as traditional gamers.
YGG Play had launched its original game, LOL Land, as a proof of concept and had secured nine additional game titles. The unit also partnered with the Pudgy Penguins NFT brand and debuted a token launchpad. By the first quarter of 2026, YGG Play reported cumulative revenue exceeding $9 million.
Market Headwinds
However, the broader crypto gaming industry has faced considerable difficulties in recent years. Numerous prominent blockchain-based games have ceased operations since early last year, and investors have largely steered clear of crypto game studios. Compounding these issues, cryptocurrency prices have plummeted since late last year, with Bitcoin, for instance, falling nearly 50% from its October peak. Simultaneously, the traditional video game industry has experienced widespread layoffs, including recent cuts at Xbox on Monday.
Restructuring and Pivot
In light of the prevailing market conditions, the team decided to shutter the publishing division. This move will result in 35 job cuts. Yield Guild Games stated that this restructuring will provide the company with extended operational runway as it pursues a pivot towards an AI-driven strategy.
“Sunsetting YGG Play is a heavy decision, but it is a market decision, not a product decision,” said Yield Guild co-founder Gabby Dizon in a statement. “I am proud of what this team achieved under such tough conditions, and what they built is a testament to their talent and dedication. Although this business unit is sunsetting, YGG’s vision and mission hasn’t changed. We are still fully dedicated to using technology to open up new economic opportunities for people globally.”
In a social media post, Dizon elaborated, “Sad news today – we are sunsetting our Web3 game publishing unit @YGG_Play, and 35 jobs will be affected as a result. We’re committed to paying 8 additional weeks for our team to manage the transition and will help them find new roles.” The post also listed YGG Play games including @LOLLandGame and @waifusweeper.
Future Direction
The YGG Play website, its launchpad, and games such as LOL Land and Waifu Sweeper are scheduled to be retired by August 1. Two games, Gigachatbat and Ragnarok Breaker, will continue to operate under their original developers following a transition period.
Yield Guild Games intends to redirect its resources toward supplying data for artificial intelligence training. The company believes that the decision-making processes of video game players can generate valuable behavioral datasets for AI developers. As of the first quarter, YGG reported a treasury of $20.6 million in assets, which it anticipates will extend its operating runway to four years post-restructuring.
Yield Guild Games emerged as a notable entity during the 2021 play-to-earn boom. It was a key supporter of the growth of the monster-battling game Axie Infinity through its “scholarship” program, which lent NFT assets to players in exchange for a share of their in-game token earnings. The company secured funding from venture capital firm Andreessen Horowitz in August 2021, amidst the surge in crypto gaming.
Following the economic collapse of Axie Infinity in 2022 and the broader decline of the play-to-earn movement, Yield Guild Games pivoted in 2024 to launching blockchain infrastructure for guilds across various crypto games, before launching YGG Play in 2025.
The company’s YGG token saw a modest increase of approximately 4% on the day, trading at $0.023. However, it has fallen about 84% over the past year and remains down 99.8% from its peak price of $11.17, which was set in 2021.
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