Key Takeaways
- Hitman 3 VR: Reloaded developer XR Games is laying off 86% of its staff.
- Numerous AAA game studios, including Embracer Group, Sony, Bungie, and Microsoft, have announced layoffs in 2023-2024.
- XR Games CEO confirms layoffs, plans to release remaining VR titles.
Hitman 3 VR: Reloaded development studio XR Games has confirmed an initiative to lay off 72 employees, gutting a majority of its staff. The move comes after disappointing review scores and sales numbers for the VR launch of Hitman 3, leaving XR Games to make drastic changes to its structuring and budget.
A slew of AAA game studios from Embracer Group, Sony, and Bungie to Microsoft announced major layoffs in 2023 and 2024, and many smaller companies have faced similar struggles that resulted in massive workforce reductions, game cancelations, and corporate shutdowns. Unfortunately for staff at XR Games, the Hitman 3 VR: Reloaded developer is the latest to face unfortunate changes in these tumultuous times.
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Developer-Publisher Nexon Announces Layoffs
Nexon, the developer-publisher behind titles like Dave the Diver and The First Descendant, is reportedly cutting jobs at its US office as part of a reorganization. Nexon, originally founded in South Korea but now headquartered in Japan, is the latest in a string of companies impacted by industry-wide layoffs. These cuts follow a larger trend, with even major players like PlayStation and Insomniac Games downsizing due to economic pressures and restructuring needs.
As reported by Eurogamer, XR Games CEO Bobby Thandi has confirmed that the studio is moving forward with massive layoffs after “many months” of “exploring alternative solutions.” Discussions surrounding the layoffs first popped up after a now-former employee posted on LinkedIn that 72 of the company’s 84 staff members, or 86% of its workforce, had received redundancy notices. Those affected are alleged to range from programmers and game designers to members of the production and project management teams. While Thandi did not confirm the exact number or departments of staff affected, he did clarify that XR Games is still planning to release its in-development VR titles Zombie Army VR and Starship Troopers: Continuum. A number of virtual reality video games have struggled to meet audience expectations in recent months, though the scope of Hitman 3 VR: Reloaded‘s struggles has come as a shock to many.
XR Games Laying Off 86% of Staff
In spite of mostly mixed responses from critics and players, many hoped that Hitman 3 VR: Reloaded would receive bug fixes and updates to improve upon feedback, though it would seem that may no longer be a possibility. With XR Games looking to move forward with the launch of its remaining titles, some fans have voiced skepticism over whether the remaining staff will be able to finish Zombie Army VR and Starship Troopers: Continuum to a higher degree of quality compared to the VR edition of Hitman 3. Both of XR Games’ remaining titles are set to release this year, though it remains to be seen if the impact of the layoffs will be felt by players.
The video game industry continues to face uncertain times, with some studios like FromSoftware looking to raise salaries and others stuck making tough decisions to cut staff, sometimes en masse. Interested players may want to stay tuned for any updates on the future of XR Games and its current VR projects.
