The VR industry is no stranger to turbulence, and Schell Games has just been dealt a significant blow. The veteran studio behind beloved titles like I Expect You to Die and Among Us 3D has confirmed layoffs affecting around 10 percent of its staff. This move marks a stark departure from the studio’s long-standing commitment to preserving jobs at all costs.
The layoffs, which have reportedly impacted around 125 employees, are a result of Schell Games’ decision to rebalance its team in response to changing industry conditions. In an effort to adapt to a shifting market, the studio is shifting its focus towards developing a greater number of smaller projects rather than working on larger titles. This change is likely driven by the current state of VR game development funding, which has been impacted by Meta’s recent string of VR studio closures.
Schell Games’ CEO Jesse Schell has been a vocal advocate for preserving jobs in the industry, and it’s clear that this decision was not taken lightly. Speaking to GamesIndustry.Biz in 2024, Schell emphasized his commitment to keeping employees on board even in the face of financial uncertainty. However, with the current industry landscape characterized by cancelled projects and studio closures, it seems that even stalwarts like Schell Games are not immune to the effects.
The layoffs will undoubtedly be felt across the VR community, particularly given the studio’s long history of producing innovative and engaging titles. I Expect You to Die, Among Us 3D, Silent Slayer: Vault of the Vampire, and Project Freefall have all become staples of the VR genre, and it’s unclear what impact this change will have on future projects.
Interestingly, Schell Games’ pivot towards developing more smaller-scale projects is a trend that is gaining traction in the industry. As VR studios continue to navigate the changing funding environment, it seems that adapting to new market realities is becoming increasingly necessary. Social VR platform Rec Room and VR veteran Survios are just two examples of companies that have been impacted by this shift.
The implications of Schell Games’ decision will likely be far-reaching, with potential consequences for both employees and the broader VR ecosystem. As one industry insider noted on LinkedIn, “Our industry (and beyond) right now is hemorrhaging.” The VR community has come to expect a certain level of commitment from its developers, but it’s clear that even the most stalwart studios are not immune to the pressures of a rapidly changing market.
As the VR industry continues to evolve and adapt to new challenges, one thing is certain: Schell Games’ decision marks an important turning point in the evolution of VR game development. The future of the genre remains uncertain, but it’s clear that the industry will continue to push forward – even if it means navigating uncharted territory along the way.
Source: Road to VR — 2026-08-28