The Year of VR studios collapsing

A change in platform support and market conditions is resulting in studios exiting VR, laying off staff or closing down.


This is a timeline of every major studio or publisher scaling back this year.





April 3, 2025

Dumb Ways Free For All and Walking Dead Saints and Sinners Dev is making layoffs

PlaySide, the developer behind Shattered, Dumb Ways Free For All, Archangel, Walking Dead Saints and Sinners and Zombie Riot is laying off some of the staff.

Read More Here

March 29, 2025

Cyan lays off half their studio.

12 people were laid off. They say "For now, our number one priority is to secure financing for our next project, and to restabilize the studio."

Cyan friends and family, we have some difficult news to share today.(More details in-thread below.)

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— Cyan Worlds 🌟 Riven (remade) out now! (@cyan.com) Mar 29, 2025 at 4:08 AM

March 14, 2025

Phaser Lock Interactive shutting down

The developer behind "Primal Hunt" and "Final Approach" has shut down. They say "The challenging economic climate and the current state of the gaming industry have made it impossible for us to continue. [...] Your passion, encouragement, and belief in our work have meant the world to us. While this chapter closes, the memories we’ve created together will remain forever. Thank you for being part of our story"

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March 6, 2025

Richies Plank and Max Mustard removed from Meta store

The studio is still actively working on a PSVR2 version, although the future is uncertain since they laid off most of their staff.

March 3, 2025

Rec Room lays off 16% of staff

They say "The market has changed dramatically from where it was in the earlier part of the decade. Gaming market growth has slowed, while higher interest rates and a more challenging fundraising environment make cash harder to come by."

Read More Here

February 27, 2025

System Shock 2 Remaster dropping VR support

They say "Facebook cancelled a ton of projects, which unfortunately included SS2VR"

We were originally developing the VR version for Oculus, but Facebook cancelled a ton of projects, which unfortunately included SS2VR. We've discussed restarting dev and if we do it'll be a future patch or standalone release. We'll have to wait and see how the 25th Anniversary remaster is received!

— Stephen Kick (@pripyatbeast.bsky.social) February 27, 2025 at 5:27 AM

February 18, 2025

Toast Interactive lays off majority of staff

"We're incredibly grateful and proud of everything the team has accomplished."

February 7, 2025

nDreams closes two VR studios

nDreams Studio Orbital and nDreams Studio have ben shut down and some of the affected employees have been moved to a new studio, Compass, focussing on F2P games. They say "Compass is fully focused on creating titles that will touch the lives of a new generation of VR players".

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February 2, 2025

OrbusVR announces shutdown

After eight years, the MMORP is shutting down. They say "While we as a company have tried to sustain the game as long as possible, we have made the difficult decision to take this next and final step. [...] We are still hopeful this market gets the love and attention it deserves in the future, and wish all future developers the greatest of success in reaching their goals! We hope this game has given you more friends and memories than one can count. We are so proud of the work we have all put into this game, along with being part of pioneering the future of VR in our small way. Thank you for making every second of this journey worth it"

Read More Here

January 29, 2025

Fast Travel Games lays off 30

They cite lower than expected sales and an uncertain year ahead.



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— Fast Travel Games (@fasttravelgames.com) January 29, 2025 at 2:20 AM

January 15, 2025

Just Dance VR developer lays off 15% of its workforce

Soul Assembly, the developer of Just Dance VR & Drop Dead says "This step was necessary to position the company for future success during a challenging time for the gaming industry."

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January 14, 2025

Powerwash Simulator ending VR support

FuturLab, the developer of Powewrwash Simulator VR says the title "costs us more than it makes".

October 4, 2024

XR Games laying off 86% of its staff

The studio behind "Hitman 3 VR: Reloaded is laying off 72 employees. They say "We've spent many months carefully exploring alternative solutions in the face of a challenging VR gaming market and a tough broader gaming landscape, and this is one of the hardest business decisions we've faced."

Read More Here

August 14, 2024

Archiact, "Doom 3: VR Edition" developer shutting down

Archiact is shutting down after laying off most of its staff.


Welcome to the Year of Greatness

 

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