Meta Closes Ready at Dawn Studios: A Shift in VR Development Strategy
In a surprising move, Meta has announced the permanent closure of VR STUDIO Ready at Dawn Studios, the esteemed VR development studio known for its critically acclaimed titles like Echo VR and Lone Echo. The studio’s closure marks a significant moment in the VR industry, especially considering the impact Ready at Dawn had on the VR gaming landscape.
The Rise and Fall of Ready at Dawn Studios
Ready at Dawn Studios, a key player under the Oculus Studios umbrella, has been at the forefront of VR game development. The studio is celebrated for creating some of the highest-rated VR games, including Lone Echo and Echo VR, which have been praised for their immersive gameplay and groundbreaking use of VR technology. The studio also has a legacy of developing popular PlayStation Portable (PSP) classics like God of War and Daxter.
However, despite the studio’s past successes, the last few years have seen a decline in new releases. The studio’s final game, Echo VR, was ported to the Oculus Quest in May 2020, and since then, Ready at Dawn has not launched any new titles. This lack of new content, combined with the challenging sales performance of Lone Echo 2, a PCVR-only game, may have contributed to Meta’s decision to shutter the studio.
Meta’s Budgetary Constraints and the Closure of Ready at Dawn
The decision to close Ready at Dawn comes as part of Meta’s broader strategy to manage the budget of its Reality Labs division. In February, Meta made the first cuts to the studio when it announced the closure of Echo VR despite it maintaining a player base “in the low 10 thousands,” according to Meta CTO Andrew Bosworth. These cuts were not driven by an immediate need to save money but rather to ensure that Reality Labs remains within its new budgetary constraints.
An internal memo from Gio Hunt, VP of Oculus Studios, confirmed that the budget for Reality Labs is being reduced by 20% by 2026. This memo, seen by Android Central, aligns with a report from mid-July, suggesting that these budget reductions are part of a longer-term strategy to focus on making a “better long-term impact” in VR development rather than simply cutting costs.
The Impact on Employees and Meta’s Commitment to VR
Despite the closure of VR STUDIO, Meta has expressed a desire to retain as much talent from Ready at Dawn as possible. Employees from the shuttered studio are encouraged to apply for positions within other studios under the Oculus Studios umbrella. Meta also assured that severance packages similar to those offered in previous rounds of layoffs would be provided to all affected employees.
Interestingly, this move does not signal a broader reduction in first-party VR game development for Quest. Meta has stated that it remains committed to advancing VR technology and content, even as it imposes stricter budgetary controls. The company continues to invest heavily in XR hardware development, including the Meta Quest 3 and Ray-Ban Meta Smart Glasses, as well as VR games and Meta AI features.
What’s Next for Meta and VR Development?
The closure of Ready at Dawn VR STUDIO is a clear indication that Meta is prioritizing its spending on VR development more carefully. While this decision might raise concerns among VR enthusiasts about the future of high-quality VR content, Meta’s continued commitment to VR innovation suggests that the company is refocusing its efforts rather than scaling them back.
As Meta navigates the evolving landscape of VR technology, the company’s next steps will be closely watched by both the gaming community and the tech industry. The closure of Ready at Dawn marks the end of an era for one of VR’s most beloved studios, but it also opens the door to new possibilities as Meta seeks to define the future of virtual reality.
Conclusion
Ready at Dawn’s closure is a significant moment in the VR industry, reflecting both the challenges and opportunities that come with pioneering new technologies. As Meta continues to adjust its strategy to align with budgetary constraints, the impact of these changes on the broader VR ecosystem remains to be seen. For now, the legacy of Echo VR and Lone Echo stands as a testament to the innovative spirit that defined Ready at Dawn Studios.
