‘Moss’ Developer Polyarc Lays Off Two-Thirds of Studio Following “major project” Cancellation

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Polyarc, the studio behind VR puzzle-platformer series Moss, announced it’s significantly reducing the size of the company, marking another VR pioneer currently experiencing existential turmoil.

The studio released word via a LinkedIn post on Tuesday, noting that layoffs come amid an “unsuccessful team-wide effort to secure funding following the cancellation of a major project.”

Speaking to GamesIndustry.biz, Polyarc says layoffs are affecting 30 employees. According to DevOps Director Alex Holodak (via UploadVR), the studio let go two-thirds of staff, putting the remaining team somewhere around 15 people.

Polyarc isn’t alone in its recent financial troubles. Rec Room, one of VR’s most prominent social platforms, announced this week it’s officially shutting down in June. Meanwhile, VR veteran nDreams, the studio behind recent action-adventure game Reach (2025), signaled earlier this month that it’s going through significant layoffs and studio closures.

Notably, Meta’s recent shift in priorities at its Reality Labs XR division not only came alongside the closure of a number of several internal game studios, but also the revelation it was pulling funding from a number of projects already in progress.

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Some of those now-cancelled projects include an unannounced Batman: Arkham Shadow sequel from Sanzaru Games, an unannounced Harry Potter VR game for Quest from Skydance Games, as well as a hard fork applied to all new Horizon Worlds content, effectively leaving only legacy Worlds for Quest users as the company shifts focus to mobile users.

Polyarc hasn’t confirmed whether its now-cancelled project was a result of Meta pulling funding.

Founded in 2015 by ex-Bungie develo[ers, the Seattle-based studio self-published the first Moss in 2018, receiving not only near-universal praise, but also more than 120 global industry awards and nominations. Moss was released across all major VR platforms at the time, including PSVR, PC VR headsets, and the original 2019-era Quest.

Then, in 2022 Polyarc released the hotly-awaited sequel, Moss: Book II. which managed to nab the The Game Awards’ Best VR/AR Game and the VR Awards’ VR Game of the Year. Moss: Book II is widely regarded as a stellar follow-up, getting a solid [8.5/10] in our full review.

In 2025, the studio followed up with its multiplayer real-time battler Glassbreakers: Champions of Moss, which offered up a roster of 12 Champions for squad-based arena battles.

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Well before the first modern XR products hit the market, Scott recognized the potential of the technology and set out to understand and document its growth. He has been professionally reporting on the space for nearly a decade as Editor at Road to VR, authoring more than 4,000 articles on the topic. Scott brings that seasoned insight to his reporting from major industry events across the globe.
  • Sonyboy

    VR is done

    • Leisure Suit Barry

      It's been done for a few years now, a gradual decline

    • NL_VR

      Nope its not.
      bad games and decisions isnt gonna move it to the grave as there are the opposite out there.
      but doom and gloomers cant see because they are no vr gamers and are only interested and want flatscreen games

      • Rayza

        Cope harder. I love VR and i've owned 5 headsets, it's absolutely cooked, wake up.

        • NL_VR

          WWhat do you mean?
          focus on the good thing instead of the bad.
          a couple of good vr games releasing this month.
          Re vr mods got also an easy installer.
          so are you really interested or is making polyarc which hasn't been releasing anything good since Moss 2 to be an example that set the stage for you? If so idt you really are that interested. Owning 5 headsets means nothi g, VR wasn't maybe what you thought it would be? Maybe it gets there in future

  • xyzs

    FUCK !!!
    Apart from Half-Life:Alyx, Moss 1&2 were my favorite VR games, I bought them even both on Meta/Steam to support the studio.

    Every day in VR is a bad news day…
    It's not even a joke anymore, it's legit truth.

    • Leisure Suit Barry

      The VR industry has never been in a better position then it is now . . . according to some

      • Herbert Werters

        Yeah, and I really do wonder what on earth they’ve been drinking.

        VR is now nothing more than a broken mobile platform with ugly little games. No wonder nobody’s interested in VR. After all, this rubbish ends up on the PC exactly as it is.

        Have a look at YouTube and its VR channels. No more gameplay videos or reviews. No viewers. Gamers aren’t interested, and even VR enthusiasts have lost interest. That’s reality.

        Personally, I only use VR for a round of mini-golf and VR mods these days.

        There really have been better days for VR. Everyone can work out for themselves why that is.

        • Sonyboy

          Yeah its total trash….I mean full scale slop. Top to bottom…High end to low end VR/XR/AR is garbage. Quest is priced right but has just bombed on the software side….Apple bombed even worse on the software side while the headset is a scam. Apple being as big as they are with endless money to over price their VR headset as much as they did they should have had 10 first party apps & games that are well known by now in the VR community.

        • xyzs

          Meta killed VR by transforming a high-end tech that impressed people into a low quality mainstream broken platform.

          Instead of VR developing with high quality tech and content, they immediately jumped into underpowered solution leading to 80 percent shit content, and people got bored by this low-quality VR landscape over time.

          Just look at Meta situation 12 years after buying Oculus…
          A 2kLCDheadset with only 110 FOV, that weigh more than 500g, barely able to run Gamecube level graphics…
          Dozen of Billions invested (into WHAT ?) and invested to killing competition and studios, and all we have is pathetic hardware running a pathetic OS, and a pathetic empty future…

          With 1 Billion you can fund 100 indie game studios to each work on a 10 million dollar project, and get many gems such as Moss to enjoy.

          With 100 Billions, they could have revolutionized the VR world, and created the most amazing hardware, and look at the pathetic situation they ended up with…

          …Quest 3 and 3S with ugly shit Horizon World…

          • Herbert Werters

            The HMDs are fine. The content is the biggest problem.

          • NL_VR

            Standalone is part of the future.
            whoever that was gonna start vr standalone would have to take the hit by "vr enthusiasts" saying it look like mobile shit.
            Standalone VR will improve as the tech and systems mature.
            you can still buy wired high end vr headsets for pc right? So whats the problem really?

        • NL_VR

          YYou thinking there are no good games really is a "you problem".
          its very common 2016 hype train "VR Enthusiasts" really isn't really what we would call today real vr gamers.
          GorillaTag kids are more VR gamers than many "2016 VR hypertrain enthusiasts".

          • Herbert Werters

            So we have

            Casual gamers: They tend to spend less, often play free-to-play games and have lower per-capita purchasing power.

            Hardcore gamers: They are more likely to buy games at full price, DLCs, subscriptions and hardware, and play premium titles more frequently.

            Whales/big spenders: A small group, but a very important one, as they account for a large proportion of revenue.

            I would argue that, as things stand, VR consists of casual gamers, thanks to developments in the mobile sector. But we need hardcore gamers, and you certainly won’t attract them with the games currently available. There are absolutely no whales or heavy spenders in VR. So explain to me how your plan for VR is supposed to work. Or do you really believe that a platform can continue to grow through games in the style of ‘Gorilla Tag’? If you believe that, then you’re completely wrong. You should never compare mobile gaming on a smartphone with consoles or PCs. The mobile VR platform is more like a console than a smartphone. Don’t forget that.

          • NL_VR

            I thinknyour definition whats hardcore and whats casual isnt correct.
            What a platform need is big playerbase and the playerbase grow by having good games :)
            PCVR jas this extra bonus that we can mod games but that doesn’t seem to draw any significant numbers of new users its just make the vr users on pc beeing able to play flatscreen games in VR.

            You seem to ignore that just in this month Flatout 4 VR (EA) Wrath, Into the radius 2 (Beta, but out of EA), This new dungeon crawler game (which inforgot the name on but looks really well made and fun), MS Flightsimulator (for psvr2) and some more are coming out.
            Games that by your definition all “hardcore gamers” and people in therse threads that seem to have no games tonplay, should appreciate and buy.
            This helps VR devs bring in the money to aim even higher with their game and next project.

          • Herbert Werters

            Well, you could derive a definition of that from the games played and bought on PC and console. But that’s not my definition. A platform needs a large player base that’s willing to pay for good games. But that doesn’t exist. So neither is there. No games and no people willing to spend money.

            There are too few titles that are interesting enough for core gamers. The few games that might be able to compete in the flat-rate sector are unfortunately not enough to really spark interest. Especially not niche games like the ones you mentioned. They’re VR ports of very old games, flight simulators that really have nothing to do with casual gaming, and hardcore survival and management games. Where are the games we’ve come to love on consoles? They don’t exist. Don’t close your eyes to reality.

            Mods are for hobbyists who are already into VR anyway. VR options need to be offered natively in the games by the developers so that friction is kept to a minimum. But why do these mods exist at all, and why are they used? Right, because they let you play games you love that aren’t available in VR.

            There are some really great VR games, but unfortunately, these games won’t attract new VR users. That can only be achieved by building habits in small steps. These are simply the games people are familiar with.

          • NL_VR

            Games that attract hardcore players are not games that have high budget and require the latest hardware but mostly easy to run games that have dedicated players and communitys that sink hours into their respective games.
            You say there are to few games to attract core gamers. But people make it sound like VR was something big and now all of a sudden isn’t.
            No VR maybe hasnt enoguh games but the numbers of games is rising litterly every month.
            You say those are old games, flight simulators and survival games isnt for casual gamers.
            No VR isnt casual by any means thats why we get these type of games.
            You requested games for hardcore gamers abd thats pretty much what we have.
            I dont think VR is at a “casual state” yet to attract casual gamers. We whonuse VR are mostly hardcore gamers of different nisches.
            And thats what i men all the time, VR has never been in a better state than it is now, VR has always been nische and foe hardcore users or what you would call it.
            The 2016 hype train VR users are not representing the VR userbase. They dont buy games and they dont know games. Its always “not enoguh” but maybe the solution for those.
            Leave VR and come vack in a few years maybe something they like and fit them have arrived.
            Because thats what happening, games are releasing and in small steps everything gets vetter.

          • Herbert Werters

            Sorry, but that’s all nonsense. The current VR user base has only grown so large because prices and barriers to entry have been artificially inflated and lowered by Meta’s financial injections. But none of the users are buying games. This is proven by the revenue figures Meta publishes every quarter. The user base is growing, but revenue remains the same. I’m looking forward to the next quarterly figures, as I suspect they’ll be down significantly this time. I don’t know what you’re seeing there, but I suspect you’re simply blind and don’t want to accept the truth. Let’s just drop the subject here. I find the whole thing rather tiresome.

          • NL_VR

            Im not talking about Meta im talking about VR inngemeral.
            VR has never been as big as you seem to imagine, it a fals ethought youngot by boosted numbers from covid and Meta pumping money.
            And Metas remevue numbers shows minus because of the huge R&D costs of reality labs and not just how muc they spend and earn on VR.

            The organic userbase that use and buy vr games are small but have slightly growed over the over time simce 2016.
            You seem to believe VR has been some kind of AAA state and now declining.
            It was never been there.
            All i say VR always been nische and has a core userbase.
            It ä has necer been mainstream, it has never been I a state that it is now declining from that many seem to believe here.
            You take examples of bad decisions made by companies like Polyarc or Meta horizon worlds of beeing some kind of measuringpoibt that VR is declining but the truth is they brought out something no one was asking for especially in the VR scene and therefor they are failing.

          • Herbert Werters

            Could you please read my messages properly? I never mentioned the cost-to-revenue ratio. I was simply talking about how revenue is stagnating at the same level despite a growing user base. And I’m not only talking about Meta, but about VR gaming in general – and I’ve never claimed that VR was or is a big deal. Calm down, please.

            And what’s all this about Covid? Those are fluctuations that can easily be smoothed out. I don’t even see them because this Covid pandemic is showing up in all the statistics. Just ignore them for once.

            I’ve never in my life said that VR ever had AAA status compared to flat gaming. I’m not stupid; I’m a core gamer on all platforms and I know what’s going on. But the fact is that when VR gaming started on the PC with the Rift CV1 and Vive, the content was better thanks to the more powerful GPUs.

            What we have now with 15W SoCs is a travesty. Let’s be realistic. And I’ll say it again: there are hardly any VR games that core gamers would look at with envy. Please read through all my posts. I see it exactly the same way as you do. They’re releasing almost all VR software that nobody’s asking for or is even interested in. VR can only grow if it can spark the interest of non-VR gamers. As things stand, it’s less interesting than it once was on the PC.

            They’ve tried with small games on the PC that weren’t enough to catch the attention of core gamers. That doesn’t work either. So that’s it then, or what? Maybe they should just take a look at what PC gamers actually play and see if VR might add any value to the games they usually play. Hellblade showed the way, but hardly anyone gave it a go.

            No, they chose a different path – the one dictated by META, who, with their money, decided that they’d now be making mobile casual kids’ stuff. Yeah, and what do we have? A massive pile of rubbish.

          • NL_VR

            Its a question of taste.
            I dont agree VR was better at the rift cv1, Vivedays.
            At that time we wouldn’t have allngood games thats out now that nonone seem to buy, not even the 2016-19 hypetrain “VR user” because those aren’t simply interested.
            Everyone could argye how VR is dying or declining but the truth is it was never at a plave these people seem to believe.
            The things you are asking for might actually come to reality now when more and more now see that everyone cant make free and live service shit.
            Im guessing you and many others would like more storydriven singleplayer games.
            And yes it would be nice, maybe it get more popular again because that has a decline on AAA flatscreen also.
            People seem less interested in that or the devs and investers think that and it spreads over to VR.

          • Herbert Werters

            My point is that VR needs to become more like what’s played on traditional consoles and PC. With the introduction of motion controllers, VR set out to be different and has focused ‘entirely’ on 6DOF room-scale. It’s too different and too far removed from what players on other platforms know and love. In my view, that’s the main reason why VR isn’t managing to win over flat players. It has nothing to do with AAA or live service games, but rather with the medium and the input method, which is ‘too far’ removed from what people are used to. That’s not to say that 6DOF room-scale is a mistake, but rather the complete lack of VR options in standard games – ‘seated controller VR’. Of course, VR enthusiasts will argue that VR is only good if you have to move around a lot, but this completely excludes players who simply want to play and watch their “favourite” game with an HMD.

          • NL_VR

            i think the people who just want to sit and play with a hmd on is verry low. When people actually take to action to put a hmd on they want an experience that take full advantages of its features. In the VR-modding community it shows as 6dog motion controller support is most requested profiles for UEVR for example and many other modders aim to add motion controller support (except luke ross).
            Adding VR support to regular flatscreen games that are controlled with a controller is something flatscreen devs should consider but they se it as it wouldnt pay back so. Some does it but not many. I dont think we should force VR-Game devs to make "flatscreen" games but make VR-games then add Flatscreen support like the upcoming Gunman Contracts, if it works.
            I think the best think to do if you want VR to grow, that is to buy VR-games there really is no shortcut here. More and more get VR-headsets and more buy games.
            IF everyone who complain in these threads actually got some games, played them they see everything isnt bad.
            Stuff that looks bad on 2d. Even a boring type of game on flatscreen can be fun in VR.

          • Herbert Werters

            Well, people ask that because the mod works even without it. No one needs to ask about it. With Luke Ross or Mutar (NoMoreFlat), everyone plays the UUVR mod with a gamepad. Sure, some people ask about it, but it’s also used without one—and mostly without one. The thing is: no one has tried it on a large scale, and as long as no one does, we can go around in circles 100 more times. The main point is, first and foremost, to show flat players how fantastic flat games can look and how immersive they can be in VR (360° 3D). That would be the absolute easiest and cheapest way for developers to show players how VR works. That’s what this is all about.

            “I think the best thing you can do if you want VR to grow is to buy VR games; there really is no shortcut here. More and more people are getting VR headsets, and more and more are buying games.”

            Well, that’s exactly what we VR gamers have been doing since 2016. Unfortunately, this is hitting its limits, especially as the games get worse—and they’ve been doing just that ever since Meta shifted its focus toward mobile VR games. The enthusiasts who were happy to pay for VR games are gone now. I can only say it again. Meta’s stagnating sales figures prove it. No one likes to spend their money on things they don’t enjoy. I haven’t spent a single cent on current VR games for a few years now, because there’s nothing left that I find truly good or worth playing. How do you picture that working? That’s not how it works. You want to pull the wool over the eyes of hardcore gamers? They’ll just jump into VR and see what’s really going on? Yeah, that’s what I call a brilliant plan.

          • NL_VR

            You dont buying games is maybe because VR games isnt for you atm?
            There are plenty of good games, and i have already mention a couple releasing this month. There is simply no truth to that you can say there are no good VR games anymore, there have been good vr releases every year.
            if you havent buy VR games in years you missed alot of gems and probably you dont even care because in reality you want to play flatscreen type of games.

          • Herbert Werters

            Yeah, and you’ve just never asked yourself why these games aren’t selling or why they can’t capture players’ attention. You’re so deeply immersed in your own VR world that you’ve lost sight of the bigger picture. So I’m sorry, but I’m trying to figure out why VR still isn’t a thing in gaming, and to me, that’s just a huge part of the whole issue. There are other factors, but the software is the biggest problem. You just can’t deny that. You don’t get that for many VR gamers, this isn’t bashing—it’s a warning.

          • NL_VR

            Games are selling, dont just look at the bad examples like failed live service games no one asked for or just bad games.There are VR-devs who seems to do just fine. Smaller studios even singledev making fantastic games like i already mentioned ITR, ExfilZone with huge updates these couple of days. And new games and updates keep coming.
            idk what you mean i deeply immersed that i cant se the bigger picture. im perfectly clear with the big picture and that is that VR was never that big some people seem to believe. That it was at a bigger stage and now declining.
            Metas Horizon was a fail because no one asked for it.
            Polyarc fail now because no one asked for anything else than a Moss 3 from them.
            Rec Room close because they couldn't find ways to fund it.
            This we can call it is some kind of reset.
            Now is the best chance ever to get games that maybe you want. Because hopefully more now realize we can't make gorilla / vrchat etc whatever copies we need to make unique games that people want.
            So now it the best chance for polyarc for example to just reset and start over with Moss 3.
            With good games people will come, VR isnt dying.

          • Herbert Werters

            I never said VR was a big deal. I’m saying they need to adopt a different strategy so that VR can become more mainstream in gaming. Anyway, that’s it.

          • NL_VR

            Yes and there has never been a better time than now to do it as "everyone" should now realise you cant push out crap no one is asking for. Which PolyArc in this case. They should just have make a "Moss 3"

          • Herbert Werters

            Oh yeah, that's right. Moss 1 and 2 are just two of the better native VR games out there. We just need to keep moving forward and keep getting better.

    • Oxi

      Yeah the Steam Frame is the best headset simply because the selling point is bringing your own software, old software, etc. It's the headset that will inherit the ruin that is VR.

    • NL_VR

      IIts not like the studio ks shutting down.
      there is a bigger.chance we get Moss 3, its back to basic for polyarc.

  • Oxi

    The Esport game just seems like a massive misstep. I don't see what it had to do with the Moss genre, it was dependent on user buy in and later monetization, and it's not really any kind of untapped market in the VR space.

  • dextrovix

    That's a real shame, I was always hopeful for a third Moss, especially after the second really raised the bar.

    However, VR has never been widely adopted and I can understand why developers who put so much effort in the create a good experience can never reap the rewards in terms of revenue generated afterwards.

  • NL_VR

    If you dont release games you wont bring in any money.
    Moss 1 and 2 is good and this doesn't mean there can be no Moss 3.
    but they got to confident. To think champions of moss was something that was gonna bring in big money was wrong.
    This is something doom and gloomers will point out VR is dead butVR hasnt been any bigger than this.
    for Polyarc its just back to basic, work on Moss 3. If they didnt burn up all money and competent people on champions of moss they probably still in same or better position as when they made the first game.

  • Rayza

    Nothing has ever been more cooked than VR is right now

  • SO FIRST OFF im sorry for those laid off at this difficult time.

    SECOND who the fckkk thought glass champions of moss was what anyone wanted vs anything else of MOSS 3!?!?!
    IT was a lazy cash grab free to play microtransaction nightmare which was never any good and mid dev was changed to be a paid title when they realized vr was struggling and no one wanted their bad scammy game!!!

    SHAME ON THE studio for such atrocious management and I promise you the people who made these terrible decisions are still there!!! but the people who worked so hard on champions were fired due to bad management and a bad game.
    In vr in 2025 you cant afford to have a massive failure. In 2026 you cant afford to even make vr games!!!

    5 years ago Valve proved you could make mind blowing perfect VR games which sold. And 5 years later no one has topped it or come near…including valve who now have the audacity to relase an insanely expensive dead on arrival new headset when we need it most but it isnt any better than the quest 3 and doesnt even have colour passthrough for prob 1000$!!!

    So whose to blame ? the total lack of good vr games across the board, vr exclusives, META fascism and piracy along side every dev who released a broken incomplete buggy vr game which made people feel sick.
    That wasnt moss… but it was champions of glass and it was like 90% of the rest. VR didnt die. It killed itself!!! YOU CANT Make bad games in VR and expect people to put their literal head and brain into that broken ass sick educing space!!! But devs keep doing it.

    Thank goodness for UEVR and modders who on their own in their moms basements keep making better vr experiences (even you luke ross!!!) than way to many AAA devs. (i see you rogue incursion!!!). VR isnt dead…. but its on life support.

    • NL_VR

      Yes I also wonder what they were thinking with champion of moss.
      it feels like no one that liked Moss wanted a game like champions of moss. I know all i wanted is a Moss 3.
      this isnt unique to VR.
      i think polyarc got some investment by promising we take our popular Moss brand and make it a live service game to earn money. But theyvlost their core audience on that project and nonone else was interested or even know what moss are.
      recently a game based on the PubG brand got canceled, it was a top down shooter.
      you know why? People who like PubG like thst game for what it is and are not interested in top down shooters even its based on PubG.
      Sony canceled TLoU li e service game. You know why? Luckily they realized people who like TLoU isnt interested in live service games instead of a TLoU 3. And those whwho like that type of games arent interested in TLoU or even know what it is.

  • After champions of glass they brought this on themselves and the people who chose to make that should be fired , not the people who did what they were told and worked hard to make that always going to be a failure game the best it could be. Vr is less dying and more being actively killed by bad management.

  • Peter vasseur

    The biggest issue is that a lot of people complaining about games. Are the people who only played one or two different genre types. There’s a lot of games in VR, games that would suck flat a lot cooler and fun to play. I think people just don’t understand that the fake pandemic really did a number on a lot of industries. Distorting the crap out of video games in general. When everyone was sitting at home with nothing to do, everybody was spending money on video games and what not. Dev Built up their studios around fake numbers, fake created pandemic demand. So that’s why it’s all screwed up, with studio cuts and shutting down.

    The other issue is most games have a lead dev system. Usually the most powerful, and then dumbed down for the lessor systems. Vr shouldn’t be any different. But devs got stupid when they got their clothes shots apparently. Getting their fake funding by meta destroying mark suck a dicke.

    So we’re ultimately in a correction, vr isn’t going anywhere, all it take is one breakthru and it’s on.