Kluge Interactive, the developer behind the popular VR game Synth Riders, has confirmed it underwent layoffs in December 2023 and January 2024. The cuts follow Meta's decision to end VR support for Horizon Worlds, a platform for which Kluge Interactive had been developing games.
What happened
Kluge Interactive experienced multiple rounds of layoffs, impacting a significant portion of its staff. The company had partnered with Meta to build games within Horizon Worlds, releasing titles like Chicken Tag and Slimoshi. The decision by Meta to discontinue VR support for Horizon Worlds appears to have contributed to the studio's financial challenges.
How many employees affected
The layoffs reduced Kluge Interactive's team size from a peak of 100 employees to approximately 50. This represents a reduction of 50% of the workforce since last year.
Why layoffs happened
The primary reason cited for the layoffs is Meta's decision to end VR support for Horizon Worlds. Kluge Interactive had been funded to develop games for this platform, and the loss of this funding stream created financial strain. The CEO also noted that while Synth Riders remains steady, it is not enough to support the full studio.
Company background
Kluge Interactive is a game development studio known for its VR title Synth Riders. In November 2023, the company announced a partnership with Meta to create games for Horizon Worlds. Kluge also released BeatBlocks, its first Roblox game, and Final Fury, a fighting game inspired by classic titles.
Industry impact
The gaming industry, particularly in the VR sector, is currently facing a downturn. Other VR game developers, such as Polyarc Games, have also recently announced layoffs and studio shutdowns.
What's next
Kluge Interactive will continue to support Synth Riders with a reduced team. The studio's future plans beyond this title remain unclear.