VR games specialist nDreams has announced plans to close two studios with the loss of up to 78 jobs.
Hampshire-based nDreams has been described as the world’s biggest developer and publisher of VR games.
The company was founded in 2006 by Patrick and Tamsin O’Luanaigh, before pivoting in 2013 to focus exclusively on VR games.
In 2023, nDreams was acquired by Swedish games giant Aonic in a £90m ($110m) deal.
In 2024, the games developer announced a strategic review resulting in up to 17.5 per cent of the company’s workforce being made redundant.
Today, the company announced the closure of two of its studios – Near Light and Compass – with 78 roles at risk of redundancy.
A spokesman said: “Our team was today informed of proposals to restructure nDreams, including a significant reduction in overall staffing levels.
“These changes would impact all levels and multiple teams, including senior leadership.
“Since 2024, our staff have been divided across three internal studios: Elevation, Near Light, and Compass.
“At the core of restructured business will be Elevation, which currently has around 120 staff engaged on unannounced projects.
“nDreams will also retain a lean group dedicated to XR R&D.
“Together, we will remain focused on delivering world-class VT and XR games.
“Regrettably, the proposals include the closure of the Near Light and Compass studios, and a reduction in our facilities, talent, shared technology and executive team, with 78 roles at risk of redundancy.
“Despite every effort to make our existing structure a success, and avert this outcome, the VR games market remains challenging, making further changes necessary to ensure a commercially viable and sustainable future.
“We committed to exploring every option to retain talent and will now enter a collective consultation process with the people impacted by these proposals.
“We recognise that this will be stressful and challenging for everyone affected and will be offering support throughout the process.”