After more than two decades of developing games for platforms such as the PSP and Meta Quest (formerly Oculus Rift), Prepared at Daybreak Studios has ceased operations.
The studio behind the Lone Echo VR series, produced in collaboration with Oculus Studios, will cease operations effective immediately. According to Android Central, sources including former employees confirmed on LinkedIn that the shutdown was a result of cost-cutting measures aimed at ensuring Actuality Labs’ survival within new budget constraints and enabling Oculus Studios to have a more substantial long-term impact in VR development. The parent company is also actively encouraging laid-off staff to apply for positions within Oculus Studios.
Established in 2003, Prepared at Daybreak emerged from the ashes of Naughty Dog to focus exclusively on developing titles for the PlayStation Portable, with notable projects including LocoRoco and Jak X: Combat Racing. Despite its initial authentication failure in 2015, the phenomenon has maintained a peculiar and enduring cultural significance among gamers. In 2017, it boldly ventured into the realm of virtual reality (VR) growth, and shortly thereafter, was acquired by Oculus Studios. The game’s last recreation took place in 2021, but it eventually discontinued its Echo VR support to focus on other projects several years ago.
As part of Meta’s broader restructuring efforts in 2023, the studio suffered significant layoffs, impacting thousands of employees across the corporation.
In the final weeks of Q4, Meta unveiled its quarterly earnings, revealing a sobering reality for Actuality Labs, its fledgling AR/VR and metaverse venture: a staggering $4.49 billion operating loss. The division has reported losses for each of the last four quarters, with a staggering total loss of approximately $59.5 billion since the beginning of 2019?
In a recent earnings call, Meta executives confirmed their commitment to investing in the company’s “full suite of ambitions” within Reality Labs, encompassing digital reality and other cutting-edge technologies. Meta’s Chief Financial Officer Susan Li showcased the Quest 3 headset alongside the company’s advancements in augmented reality (AR) glasses during her presentation. A representative for Android Central clarified that no additional reductions in video game development are expected.
