VR game developers say 2025 marks a shift away from new headset launches toward diversifying across Quest, PlayStation, and Steam to reach players, with cross‑platform releases proving beneficial but funding tightening. While some studios report solid holiday sales and ongoing content drops, others like Cloudhead Games have cut staff, and overall investment remains tight as Horizon OS is shelved and reliance on subscription revenue grows, prompting questions about sustainable indie VR growth in the near term.
Splitgate 2, after its surprise launch in June, is being 'unlaunched' with plans to overhaul and relaunch in early 2026, amid community criticism, internal setbacks, and cost-cutting measures, while continuing support in a limited beta.
Microsoft reportedly met with Romero Games just a day before canceling their funding and laying off staff, with no prior warning, raising concerns about Microsoft's business practices and transparency in the gaming industry. The studio was working on a well-developed FPS title, and the incident highlights broader layoffs and cancellations affecting multiple game studios under Microsoft.
Raphaël Colantonio, founder of Arkane Studios, criticizes Microsoft's Game Pass, claiming it is an unsustainable model damaging the gaming industry, especially amid recent layoffs and studio cuts, while some others see it as a successful partnership.
MindsEye studio Build a Rocket Boy, led by Leslie Benzies, blames internal and external saboteurs for its struggles following the disastrous launch of its debut game, MindsEye, which has received extremely poor reviews and led to significant layoffs and refunds.
BioWare, a long-standing game studio under EA, faced a major setback after the poor performance of its latest game, Dragon Age: The Veilguard, which failed to meet sales expectations leading to layoffs and strategic shifts. The game's troubled development was marked by multiple pivots from single-player to multiplayer and back, internal conflicts, and rushed deadlines, culminating in a lukewarm reception and raising questions about the studio's future.
