Yield Guild Games (YGG) announced it is sunsetting YGG Play, its Web3 game publishing arm, citing unfavorable macroeconomic conditions and an unsustainable market for crypto game publishing. The transition will be completed by August 1.

Despite generating over $9M in lifetime revenue by the end of Q1 2026, YGG said the prolonged crypto market downturn and weak retail activity made the business no longer commercially viable. The company will also lay off 35 employees as part of the restructuring.

Going forward, YGG will shift its focus toward the AI data economy, building gaming datasets for AI training while leveraging its community to create behavioral data and expand AI-related opportunities.