In a recent announcement, Iceland-based game developer CCP revealed that it is significantly scaling back its VR-related operations. The company is reportedly laying off nearly 100 employees globally, with the closure of its Atlanta subsidiary and the potential sale of its Newcastle-based division. Some reports suggest that CCP may even halt VR game development entirely over the next two to three years.
CCP CEO Hilmar Veigar Pétursson stated that while the company has achieved success in the VR space, it will now refocus its efforts on PC and mobile platforms. He emphasized that major investments in VR will not happen until market conditions improve.
Despite this shift, Pétursson confirmed that the company will continue to support "EVE Online" and will keep updating its VR titles such as "Sparc" and "EVE Valkyrie." Additionally, CCP plans to promote two new projects: "Project Nova," a multiplayer first-person shooter for PCs, and "Project Aurora," a free-to-play mobile game.
When "EVE Valkyrie" launched in March 2016 alongside the Oculus Rift, it quickly became one of the most anticipated VR games. Though CCP is best known for "EVE: Online," it has also gained recognition in the VR industry. However, the decision to cut back on VR is driven by the belief that the current VR market is too small to offer substantial growth opportunities.
Compared to PCs and mobile devices, VR still struggles to build a large user base, especially in emerging markets. The high development costs and technical barriers make it difficult for companies to justify long-term investment. For CCP, the challenge lies in balancing the high costs of VR development with the uncertain return on investment.
From a player's perspective, while purchasing VR hardware is becoming more accessible, the lack of compelling content remains a problem. Games like "Arizona Sunshine" have helped push the boundaries of what VR can offer, but they still fall short of meeting the expectations of many users.
However, CCP’s move doesn’t signal a complete exit from VR. Instead, the company appears to be taking a wait-and-see approach, hoping for future market expansion or breakthroughs in hardware and content. As Pétursson put it, “waiting for the rabbit†might be a smart strategy if the right conditions eventually arise.
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