A Devastating Blow to the VR Industry: Mighty Coconut’s Latest Layoffs a Harbinger of Change
In a gut-wrenching announcement, Mighty Coconut, the studio behind the hit VR game Walkabout Mini Golf, revealed that it will be laying off approximately 35% of its staff. This latest round of layoffs follows a previous downsizing in January, which saw 25% of the team let go, leaving the company with just 27 employees at the time.
The news comes hot on the heels of a DLC price hike, which has raised all forthcoming DLC to $5 from $4, a move that some have criticized as tone-deaf. According to CEO Lucas Martell, the decision was made necessary by the current state of the VR industry, which is facing unprecedented challenges and contraction.
Martell takes full responsibility for the studio’s decision, stating that he failed to anticipate the rapid decline in the VR market. Despite this, Walkabout Mini Golf has managed to hold its own, thanks in part to the success of its DLC releases, but even these have not been enough to sustain the company at its current scale.
The layoffs will undoubtedly be felt throughout the industry, where several high-profile studios have already closed their doors or reduced staff this year. Meta’s XR Reality Labs division saw a 10% staff layoff earlier in the year, which included the closure of Sanzaru Games (Asgard’s Wrath) and Twisted Pixel (Deadpool VR).
But amidst all the doom and gloom, Martell remains optimistic about Walkabout Mini Golf’s future. The studio promises to continue releasing DLC courses, albeit at a slower pace due to the reduced team size. In fact, Mighty Coconut is diversifying its revenue streams by working on two new projects: Walkabout Dungeon Golfer, an upcoming hybrid VR/flatscreen roguelike dungeon crawler featuring golf mechanics, and GRASS, a flatscreen co-op lawn-care simulator.
While these developments may provide some hope for fans of the game, they cannot mask the pain felt by those affected by the layoffs. As the VR industry continues to navigate its current challenges, one thing is clear: only the strongest and most adaptable studios will survive and thrive in this new landscape.
For Walkabout Mini Golf enthusiasts, the news serves as a stark reminder that even the most beloved games are not immune to the realities of the market. But it also highlights the resilience and determination of the development team, who remain committed to keeping their game alive, even if it means taking a more modest approach.
As we move forward into an uncertain future for VR gaming, one thing is certain: only time will tell what lies ahead for Mighty Coconut and Walkabout Mini Golf. But for now, fans can take heart in knowing that the game will continue to evolve and thrive, albeit in a slightly different form.
Source: Road to VR — 2026-09-30