Meta has reportedly shut down the game development studio Ready at Dawn as part of a strategic move to align its Reality Labs' operations with new budgetary restrictions. According to an internal memo from Gio Hunt, VP of Oculus Studios, the closure was effective immediately. This news follows a challenging second quarter where Reality Labs recorded significant financial losses amounting to $4.5 billion.
Ready at Dawn's Journey
Founded in 2003 by former Naughty Dog and Blizzard staff, Ready at Dawn has been a prominent player in the gaming industry. The studio gained fame for working on titles like Daxter and the God of War franchise. In 2017, Ready at Dawn shifted focus towards virtual reality (VR) and developed the acclaimed Lone Echo series.
In June 2020, Meta acquired Ready at Dawn to bolster its VR capabilities, a move that was seen as a commitment to expanding its virtual reality ecosystem. However, the studio was not immune to Meta’s corporate restructuring, as evidenced by the layoffs in April 2023.
Impact on Meta's VR Ambitions
The closure of Ready at Dawn is reportedly not a measure to "save money." Instead, Meta aims to ensure that Reality Labs can deliver a "better long-term impact" by staying on track with its financial goals. Despite this, Meta has assured that it remains committed to its virtual reality ambitions and does not plan to reduce the number of its first-party VR titles.
Budgetary Challenges
Reality Labs, Meta’s VR division, has been grappling with substantial financial losses. The $4.5 billion loss recorded in Q2 is part of an ongoing issue over the past few years as Meta invests heavily in the VR sector. These challenges have prompted the company to adopt stringent budgetary measures to ensure sustainable growth as it continues to compete in the rapidly evolving tech landscape.
Future of VR at Meta
Despite the financial hurdles and strategic closures, Meta's vision for VR remains undeterred. The company is focused on delivering innovative VR experiences that can capture and engage a global audience. As the tech giant navigates its financial landscape, the industry watches closely to see how Meta will balance innovation with fiscal responsibility.
