
"I have been in the industry for almost 30 years at this point. This is the roughest period I have ever seen. It's rough for everybody. It's rough for VR. We are not immune. We shut down several of our studios. And make no mistake: Those were top-class studios."
"Revenue in the Quest store was still up slightly in 2025, according to Pruett. However, much of the medium's growth has been driven by free-to-play titles like GorillaTag and UG, which are popular with young teens with little disposable income. Even older hardcore VR gamers are not spending as much as they used to."
"As you grow older, start to become an adult, you are looking for things that are more challenging to you. They have been playing it since they were 12. They're used to a different kind of gameplay with a bigger emphasis on social interaction, and also a lot less prone to motion sickness than older players."
The VR gaming industry is experiencing unprecedented challenges, according to Meta Reality Labs' director of games. Meta has eliminated over 1,000 VR-related positions and closed multiple first-party studios, contributing to widespread unease among third-party developers who have also conducted layoffs. While Quest store revenue increased slightly in 2025, growth is primarily driven by free-to-play games like GorillaTag that appeal to young teens with minimal spending power. Even established VR gamers are reducing expenditures. However, industry leaders see potential in the emerging generation of VR-native young adults who have played since childhood, possess greater comfort with VR gameplay mechanics, and experience less motion sickness than older players.
#vr-gaming-industry-crisis #meta-layoffs-and-studio-closures #free-to-play-gaming-economics #vr-native-generation
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