Meta is closing Ready at Dawn, the first-party studio known for its VR games, including Echo VR. The shutdown is effective immediately, marking the end of the studio that Meta acquired in 2020. An internal memo sent to Meta employees by Gio Hunt, VP of Oculus Studios, suggested that the budget for Reality Labs is being cut by 20% by 2026.
According to Hunt, The cuts aim to ensure the division stays within new budgetary constraints and to facilitate a “better long-term impact” in VR development. Despite rumors, a Meta spokesperson clarified that the cuts were not primarily aimed at saving money but at reallocating resources to projects that could benefit more VR users.
Meta reallocates resources in VR realignment
When Meta acquired Ready at Dawn, it promised that the studio would continue to create innovative VR content as an independently-operated entity. However, the promise fell short as budget reductions forced the closure. Ready at Dawn was known for titles such as Lone Echo II and The Order: 1886, and it had other projects in the pipeline, which now seem unlikely to see the light of day.
This development follows Meta’s strategic shift towards ensuring that its VR efforts, under the Reality Labs division, align with long-term financial and developmental goals. It remains to be seen how this will impact Meta’s position in the competitive VR market. No further comments were made by Meta spokesperson Alaina Laszewski on the details of the closure.
