Azra Games, the ambitious VR and blockchain gaming studio founded by Mark Otero, former general manager of EA Capital Games and BioWare, has announced that it’s reducing its team size just two years after securing $42 million in funding. The news comes as a surprise to many in the industry, especially given the studio’s high-profile investment and promises of “best-in-class” collectible and combat RPGs.
According to Azra Games’ statement, the studio is shifting from a heavy production phase to a more focused period of device expansion, optimization, and polish. This means that some team members will be leaving, while others will continue working on the development of UnGodly, their debut game. The remaining team will focus on meeting the studio’s standards for quality and sustainable monetization.
UnGodly has been in the works since Azra Games’ inception in 2022, with pre-registrations opening just last month. As a blockchain-based RPG, it’s set to launch on both mobile and PC platforms. Otero’s vision for the game was clear even from its early stages: he saw mobile gaming as the future of the industry, with “mobile is going to eat and destroy PC and console gaming.” This bold prediction has sparked debate among industry insiders, but UnGodly’s success will undoubtedly be closely watched.
The layoff news may raise concerns about Azra Games’ financial stability, especially given its recent funding rounds. However, Otero remains optimistic, citing the studio’s oversubscribed funding rounds as a testament to its progress and potential. Despite this, it’s clear that the VR gaming landscape is increasingly competitive, with many studios vying for attention and investment.
The layoff announcement also comes on the heels of another high-profile studio closure: 11 Bit Studios, developer of The Alters and Frostpunk, announced last week that it would be laying off 20 employees. This trend raises questions about the sustainability of large-scale VR gaming projects and the need for studios to adapt to changing market conditions.
As VR enthusiasts eagerly await UnGodly’s release, they may wonder what this means for the future of VR gaming. Will Azra Games’ reduced team size impact the game’s development timeline or quality? Can the studio still deliver on its ambitious promises with a smaller team? Only time will tell, but one thing is certain: the VR gaming landscape is constantly evolving, and studios must be willing to adapt and innovate in order to succeed.
Source: Game Developer XR — 2026-07-14