Polyarc, the studio behind the Moss VR games, has confirmed layoffs after it failed to secure funding for its next project, and the decision comes at a time when the VR segment continues to face growing pressure across the gaming industry. The company reduced its workforce following what it described as an unsuccessful effort to move a new project forward, which now leaves its future uncertain.
Polyarc shared the update through a public statement.
“Today we shared some very difficult news at Polyarc. After an unsuccessful team-wide effort to secure funding following the cancellation of a major project, we had to make the decision to significantly reduce the size of the company. This means we’re saying goodbye to many talented people who have been a meaningful part of what we’ve built.
We want to thank everyone impacted. Your work, creativity, and care mattered. We made wonderful games together, and we would not have made it this far without you. Your contributions will continue to shape our culture and the games we make.”
— Polyarc
The studio’s message reflects how a “team-wide effort” still ended in cuts, and phrases like “difficult news” and “saying goodbye” underline how deeply the layoffs affect its internal team and ongoing plans.
A Key VR Studio Faces Uncertainty
Polyarc built a strong reputation with Moss and Moss: Book II, both of which earned praise from PlayStation VR users for their design and storytelling, and many players still consider them among the standout titles on Sony’s VR platforms. The studio later expanded with Glassbreakers: Champions of Moss, which launched in November 2025 across Meta Quest, SteamVR, and Apple Vision Pro.
Even so, the broader VR market has slowed down, and studios now struggle to secure funding for large projects, which puts developers like Polyarc in a difficult position despite past success. The current situation leaves the studio searching for stability, and its next steps will decide whether it can recover or join a growing list of VR teams shutting down.
