Kluge Interactive, the developer of the popular VR rhythm game Synth Riders, has confirmed a significant reduction in its workforce. The layoffs occurred earlier this year and have substantially impacted the studio's size.
What happened
Kluge Interactive experienced major layoffs in December and January. This decision followed Meta's announcement that it was pulling back on first-party studio support for Horizon Worlds, a platform for which Kluge Interactive was developing games.
How many employees affected
The layoffs resulted in a 50% reduction of Kluge Interactive's staff. The studio went from a peak of 100 employees to a current team of 50.
Why layoffs happened
The primary reason for the layoffs appears to be Meta's shift in priorities away from VR support for Horizon Worlds. Kluge Interactive had been funded to create games for this platform, and the change in Meta's strategy led to a significant loss of funding.
Company background
Kluge Interactive is best known for developing Synth Riders, a popular VR rhythm game released in 2018. The studio has also been involved in creating games for other platforms, including Horizon Worlds, Roblox, and Nintendo Switch.
Industry impact
The layoffs at Kluge Interactive reflect broader challenges within the XR industry. Other VR studios have also faced project cancellations and layoffs. Meta closed first-party VR studios Armature Studio, Twisted Pixel, and Sanzaru Games in January. The closure of Horizon Worlds competitor Rec Room is also expected in June.
What's next
Kluge Interactive will focus on supporting Synth Riders with its remaining team. The studio will likely need to adapt to the changing landscape of the VR gaming industry and explore new opportunities for growth and sustainability.