nDreams restructuring closes two studios, puts 78 roles at risk amid VR market retreat
Summary
nDreams, acquired by Aonic in 2023, is closing two studios and placing 78 roles at risk across all levels
Near Light (Brighton, acquired 2022) and Compass (40-person team formed after 2024 closures) are both shuttered
Only Elevation studio (~120 staff) and a lean XR R&D group survive the consolidation
This follows nDreams' own 17.5% workforce cut in 2024 and Meta's January 2026 closure of three first-party VR studios
"Whilst the current market presents undeniable commercial challenges, I still believe in the mission, and the medium"
01
nDreams consolidates to a single studio after second restructuring in two years
All active development funnels into Elevation, retaining ~120 staff on unannounced projects
Near Light, acquired in 2022, is closed alongside Compass
Compass was built in 2024 specifically to absorb talent from that year's closures - now itself eliminated
Consultation began March 5; layoffs hit all levels including senior leadership
Founder Patrick O'Luanaigh exited the CEO role last year after 19 years
02
VR's largest demand anchors are pulling back simultaneously
Meta closed Twisted Pixel, Sanzaru, and Armature in January 2026
Meta pivoted Horizon Worlds from VR to mobile last month
Meta described its VR posture as "sustaining" investment, not growing it
nDreams attributed both the 2024 and 2026 cuts to a "challenging VR games market"
Two restructuring cycles in 24 months at the sector's largest independent VR studio signals structural decline, not a one-off correction
Events
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Locations
United Kingdom
COMPILED BY GAMES ATLAS EDITORIAL
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