Challenges and Transitions in VR Gaming: Layoffs at XR Games Amid Uncertain Market

The landscape of virtual reality gaming continues to progress, providing a blend of potential benefits and hurdles for developers in the industry. Recent developments have highlighted the difficulties faced by studios navigating this intricate environment. As the market fluctuates, some companies are making difficult decisions regarding their workforce in response to the current climate.

The studio behind several anticipated VR experiences, including Sony's Starship Troopers VR title, has encountered a substantial wave of job losses, which they attributed to a tough VR gaming environment. XR Games, known for the less-than-stellar reception of Hitman 3: VR Reloaded and their forthcoming projects Zombie Army VR and Starship Troopers: Continuum, has seen a significant reduction in staff. One former employee compared the layoffs to a situation beyond mere restructuring.

Reports indicate that 72 employees were let go, leaving a mere 12 from a total of approximately 84. This drastic downsizing has cast uncertainty on the release and ongoing support for both Zombie Army VR and Starship Troopers: Continuum. Despite these challenges, XR Games issued a communication affirming that both titles remain on schedule for release in 2024.

Hitman 3: VR Reloaded, crafted by XR Games in collaboration with the studio behind Hitman, was intended as a standalone adaptation of Hitman VR for the Meta Quest 3, aiming to fix a few of the primary challenges of the initial game, such as the absence of dual wielding. Unfortunately, it was met with unfavorable feedback from both players and critics, with some outlets describing it as a particularly disheartening entry in the VR space.

The VR sector has faced setbacks recently, exemplified by the PSVR2, which experienced a decline in momentum shortly after its debut, despite its strong technical capabilities. Sony has not disclosed any sales figures since announcing that the headset sold 600,000 units within six weeks of its launch in February 2023. In December 2023, a representative from Sony Interactive Entertainment acknowledged VR's current challenges in an interview.

Meanwhile, Starship Troopers: Continuum is scheduled for release regarding the Meta Quest 2 and 3 in October 17, 2024, followed by the PSVR2 version set to roll out on October 31, 2024. Additionally, Zombie Army VR is slated to launch on various platforms, including PSVR2, Meta Quest 2 and 3, Oculus Rift, and PC via Steam later in 2024.