nDreams Announces Significant Layoffs and Shuts Down Near Light and Compass Studios
VR developer and publisher nDreams has confirmed a major restructuring that includes a significant reduction in staffing and the closure of two of its internal studios, Near Light and Compass. The company shared the update in an official statement on LinkedIn, where it said the changes are part of a broader effort to reorganize the business around nDreams Elevation while maintaining a smaller group focused on XR research and development. Reports citing the company statement say 78 roles are at risk as part of the closures and wider restructuring, including positions across leadership and shared teams.
According to the company’s message, the cuts are not limited to the two studios being shut down. nDreams said the restructuring affects multiple parts of the organization, including facilities, talent, shared technology, and executive teams. Near Light and Compass are the only studios confirmed for closure, but the impact reaches much further across the business. The company said it had tried to make the existing structure work, yet the current VR games market remains difficult enough that more drastic action was deemed necessary to secure a sustainable commercial future.
The news is particularly notable because nDreams has been one of the better known dedicated VR studios in the industry, with a portfolio that includes Synapse, Ghostbusters: Rise of the Ghost Lord, Vendetta Forever, PowerWash Simulator VR, and Reach. In November 2023, Swedish gaming group Aonic completed its acquisition of nDreams for a total enterprise value close to 110 million dollars, a deal both companies positioned at the time as a major long term investment in virtual reality and mixed reality game development.
From an industry perspective, the move reflects a larger challenge that continues to follow VR game development in 2026. While the medium still delivers some of the most immersive experiences in gaming, it remains a relatively niche market compared with console, PC, and mobile. Hardware costs, slower mainstream adoption, and a smaller addressable audience continue to put pressure on studios that build primarily for VR. nDreams’ restructuring does not signal the end of its work in the space, but it does underline how difficult it remains to scale a dedicated VR business even for one of the sector’s more established names.
For now, nDreams Elevation will continue working on its unannounced projects, and the company says it will retain a lean XR research and development group. Even so, the closure of Near Light and Compass is a sobering moment for the VR market, especially at a time when many in the industry are still waiting for the next major wave of consumer adoption to arrive. The technology remains promising, but this latest round of layoffs is another reminder that promise alone is not enough to guarantee stability.
What do you think, is the VR market still growing at a sustainable pace, or does this show the industry is still struggling to move beyond a niche audience?
