Seattle-based Polyarc Games, known for its VR titles Moss and Glassbreakers: Champions of Moss , has announced a reduction in staff due to the cancellation of a major project and subsequent funding challenges. The studio, founded by Bungie veterans, is the latest in the VR sector to experience cutbacks.
What happened
Polyarc Games was forced to reduce its staff after a major project was cancelled and the company was unable to secure further funding. The studio made the announcement via a statement on its LinkedIn page.
How many employees affected
The exact number of employees affected has not been specified by the company. However, a former DevOps Director at Polyarc Games confirmed on LinkedIn that two-thirds of the staff were let go.
Why layoffs happened
The layoffs are a direct result of the cancellation of a major project and the company's inability to secure alternative funding. According to a former employee, the project lost its funding in December 2025, and a third-party publishing attempt to secure funding was unsuccessful.
Company background
Polyarc Games was established in 2015 by former Bungie developers Tam Armstrong, Danny Bulla, and Chris Alderson. The company initially raised $3.5 million in 2016 for the development of Moss and later secured $9 million in Series B funding in 2020 to expand into augmented reality.
Industry impact
Polyarc's layoffs are part of a broader trend of downsizing within the VR industry. Other companies, including Meta's Reality Labs, nDreams, Mighty Coconut, and Cloudhead Games, have also recently announced layoffs or studio closures.
What's next
Polyarc has stated that it will facilitate introductions between affected employees and companies that are hiring. The company has also shared a spreadsheet of available talent. The future of Polyarc Games and its projects remains uncertain.
Source: uploadvr.com, wnhub.io, gamesindustry.biz