Meta has announced the closure of Ready at Dawn, a development studio under its Reality Labs division, as the company implements significant budget cuts. According to an internal memo from Gio Hunt, vice president of Oculus Studios, Meta plans to reduce the Reality Labs budget by 20% over the next two years.
Acquired by Meta in 2020, Ready at Dawn is known for its VR project Lone Echo 2, launched last year. The studio’s closure marks a shift in Meta’s approach to VR development, aiming for more sustainable operations. Budget cuts are part of Meta’s strategy to reallocate resources within its VR segment.
Focus on Standalone VR Development
The internal memo highlights that these budget reductions are not merely cost-saving measures but are intended to enhance Oculus Studios’ impact on VR development. Meta’s increasing focus on standalone VR, mainly through its Meta Quest headsets, contrasts with Ready at Dawn’s recent focus on PC VR releases.
Ready at Dawn’s history in the gaming industry is notable. Founded in 2003 by former Naughty Dog developers, the studio gained recognition with the PSP spin-off Daxter and its critically acclaimed God of War games for PSP. Their technical prowess was showcased in their PS4 exclusive title, Order: 1886, although it faced criticism for gameplay mechanics and short length.
Challenges in VR transition
In 2017, Ready at Dawn ventured into VR gaming with the release of Lone Echo for Oculus Rift, followed by Lone Echo 2 in 2021. Despite these efforts, the studio struggled to align with Meta’s standalone VR vision. Although they adapted Echo Arena for the Meta Quest, Lone Echo 2 remained exclusive to PC VR Oculus Rift headsets. Furthermore, the popular game Echo VR was discontinued in August without much explanation.
The closure of Ready at Dawn is part of Meta’s broader restructuring efforts following significant financial losses in its Reality Labs division, which reported a second-quarter loss of $4.5 billion. These restructuring measures aim to align the division with new budgetary constraints while continuing to support VR development within Meta.
Meta has encouraged Ready at Dawn employees to explore opportunities within Oculus Studios, suggesting that despite the studio’s closure, there are still paths forward for the company’s talent.
The shutdown of Ready at Dawn is a significant move in Meta’s strategy to refine and focus its VR development efforts. By reallocating resources and reducing budgets, Meta aims to substantially impact the VR industry while navigating the financial challenges faced by its Reality Labs division.
Meta’s strategic shift
Meta’s decision underscores its strategic shift toward standalone VR experiences. The Meta Quest line of headsets represents this new direction, focusing on accessible and immersive VR experiences that do not rely on PC VR setups. This shift is aimed at broadening the adoption and impact of VR technology.
Ready at Dawn’s legacy in the gaming industry remains influential. Despite the challenges faced in transitioning to Meta’s vision for VR, the studio’s contributions to traditional gaming and VR have left a lasting mark. As Meta continues to evolve its VR strategy, the closure of Ready at Dawn signifies the end of an era and the beginning of a more focused approach to VR development.
Meta’s budget cuts and the subsequent closure of Ready at Dawn highlight the company’s efforts to streamline its VR development processes. This move aims to enhance Oculus Studios’ overall impact within the evolving landscape of VR technology. As Meta pushes forward with its standalone VR vision, the company seeks to navigate the financial and developmental challenges that lie ahead.