Canada-based VR studio Cloudhead Games has laid off 70% of its employees.
In a statement shared on LinkedIn, Cloudhead Games CEO and CCO Denny Unger said the reduction will be effective as of tomorrow (January 7) “due to industry forces beyond our control.”
“The general downturn of the gaming industry, VR’s still nascent challenges, including a lack of platform funding have placed us in an impossible position,” wrote Unger.
“While we’ve done all we can to reinvest in our people and VR’s future from prior successes, we can’t build ‘bigger swings’ alone.”
He continued: “Cloudhead has weathered many storms in our 14 years in VR. Our belief remains in the power of VR as a medium, as a shared dream machine that will one day transform humanity […] Our ongoing priority is to find ‘the reason’ to use VR and we will continue on that road until we can no longer.”
Unger expressed support for those affected by the decision, and linked a “reverse recruiting” to help source future job opportunities.
“I will have much more to say about the challenges and potential opportunities of our industry in a future update,” Unger added.
“Until then, please help us support the talented people who leave us for other opportunities.”
Cloudhead Games was co-founded in 2012 by Denny and Tracey Unger. It’s most recent title, Pistol Whip, launched in 2019.
