The virtual reality developer nDreams has announced it will wind down two of its studios, a decision that poses a significant challenge for its workforce. This change signals a broader industry trend of reducing teams and consolidating operations as market conditions in VR gaming remain tough.

In recent developments, the company disclosed that its Brighton-based studio, Near Light, along with the Farnborough location known as Compass, will be closing. The impact of these closures is anticipated to affect approximately 78 positions, while around 120 employees will remain at the main Elevation studio to continue work on several as-yet undisclosed projects.

The restructuring comes after earnest efforts were made to optimize the existing framework and avoid such outcomes. The management emphasized that, given the competitive nature of the VR games sector, further adjustments are essential to secure a sustainable and commercially viable future.

  • Elevation will serve as the central hub for current and future projects, employing about 120 team members on secret initiatives.
  • A lean group will also be preserved to focus on research and development in XR technologies.
  • The company is set to begin a collective consultation process with all staff impacted by these changes, ensuring assistance and support are provided throughout what promises to be a challenging transition.

This move reflects nDreams’ commitment to exploring every option to retain vital talent while streamlining operations to more effectively align with the continuously shifting requirements of the virtual reality market.