nDreams VR Studio Announces Major Layoffs and Closure of Two Internal Studios

In a recent announcement via their LinkedIn page, nDreams confirmed significant layoffs affecting several studios within its network. This restructuring aims to centralize operations around nDreams Elevation, although it specifically mentions the closure of only two studios: Near Light and Compass, resulting in a total of 78 developers facing job losses.

Acquired by Swedish tech firm Aonic in 2023 for a hefty $110 million, nDreams has continued to innovate since the debut of titles such as Synapse and Ghostbusters: Rise of the Ghost Lord. Following the acquisition, the studio expanded its portfolio with several new releases, including Vendetta Forever, PowerWash Simulator VR, Frenzies, Grit & Valor 1949, Top Hat, Wreckin’ Raccoon, Oh My Galaxy, and Reach.

Statement from nDreams about staff reductions and closure of Near Light studio — Image credit: nDreams

While the nDreams Elevation team will proceed with their currently unannounced projects, the company plans to maintain a streamlined group oriented towards XR research and development. It’s important to note that these layoffs have affected multiple areas of the organization, including positions within executive and senior leadership.

“Despite extensive efforts to make our existing structure succeed and avoid this situation, the VR gaming market continues to face challenges, necessitating further adjustments to secure a sustainable and commercially viable future, ”noted nDreams in their statement.

While virtual reality has long been touted as a groundbreaking innovation within gaming, it has yet to fully penetrate mainstream culture. Many individuals who have experienced VR headsets often express a sense of wonder, especially when engaging with groundbreaking titles like Half-Life: Alyx. However, the reality remains that VR is still a niche segment within the broader gaming industry.

Emerging technologies such as the anticipated Steam Frame headset may potentially revitalize interest in VR. However, surging memory prices could pose economic barriers for consumers who are otherwise intrigued but hesitant due to cost considerations.

In a previous discussion, O’Luanaigh highlighted ongoing technological challenges that continue to impede VR’s growth. Four years later, many of these issues persist.“When VR initially launched, there was an overwhelming expectation that it would sell a billion units within two years. Unfortunately, such expectations often lead to a ‘trough of disillusionment’ as reality sets in, ”O’Luanaigh explained.

Confirming a broader trend, he noted, “New technologies typically experience a lengthy maturation period. Though there is currently significant hype surrounding VR, NFTs, and AR, realistic progress will take time. VR’s previous iterations faced significant usability barriers that are gradually being resolved, as demonstrated by the transition from the complex setups of early VR systems to the simplicity of current models like the Quest, which offers high-quality, plug-and-play experiences at reasonable prices.”He emphasized the developmental journey needed for the industry, illustrating that the growth of VR mirrors the evolution of other technological advancements.

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