Meta has made the decision to close Ready at Dawn Studios, a well-regarded developer known for its VR games. Android Central reports that the move is a part of Meta’s initiatives to realign its budget within the Reality Labs division.
The shutdown impacts the team behind titles like “Lone Echo,” “Lone Echo 2,” and “Echo VR.” Additionally, Ready at Dawn was known for PSP games such as “God of War” and “Daxter.” Meta is advising affected staff to apply for roles in other divisions within Oculus Studios to retain their talents.
Reasons for Closure
An internal memo from Oculus Studios VP Gio Hunt explained that the shutdown is essential to meet the new budgetary guidelines for Reality Labs. The adjustment is not seen as cost-cutting but as alignment with the budget. Meta asserts that there will be no reduction in the number of first-party games for Quest and continues to prioritize VR development.
Since being acquired by Oculus Studios in June 2020 shortly after porting “Echo VR” to the original Oculus Quest, Ready at Dawn hasn’t released new titles apart from the Quest port. The performance of “Lone Echo 2,” which was only available on PCVR, may have influenced this decision. During a recent earnings call, Meta revealed that Quest 3 sales have been strong, despite tighter budgets for Reality Labs.
A Meta spokesperson highlighted that these budget decisions are aimed at ensuring sustainable VR development. The company continues to focus on VR and plans to maintain investment in VR games and hardware.
Legal and Financial Details
Meta clarified that the closure doesn’t meet the California WARN Act criteria, which necessitates advanced notice for layoffs exceeding 50 employees. Those affected will receive severance, consistent with prior Meta layoffs.
Nearly 18 months post-acquisition, Meta has opted to close Ready at Dawn as part of a wider plan to cut Reality Labs’ budget by 20 percent before 2026. The strategy anticipates the upcoming releases of Meta Quest 4 and Quest 4s.
Last Updated on November 7, 2024 3:22 pm CET
