nDreams Restructures Amidst Challenging VR Market, Studios Face Closure

VR game developer and publisher nDreams is undergoing a significant restructuring that includes the proposed closure of two internal studios, Near Light and Compass. The move puts 78 employees at risk of redundancy, according to a statement released by the company. This follows a previous round of layoffs in February 2025, where 17.5 percent of the workforce was reduced.

Restructuring Details

The restructuring plan centers around consolidating development efforts within Studio Elevation, which comprises approximately 120 employees currently working on unannounced projects. NDreams also intends to maintain a smaller research and development (R&D) team focused on emerging extended reality (XR) technologies.

According to a company spokesperson, the executive team may also be affected by the cuts. “The company’s proposals include the closure of the Near Light and Compass studios, and a reduction in its Facilities, Talent, Shared Technology, and Executive teams, with 78 roles at risk of redundancy,” the statement reads. Game Developer

Recent Studio History

Compass studio was established in February 2025, following the closure of nDreams Studio Orbital and nDreams Studio. Led by Callum Godfrey, a veteran of Activision, EA, and King, Compass aimed to target a younger VR audience through rapid prototyping and data-driven development. Game Developer

Near Light, based in Brighton, is a VR and AR game development studio and part of the nDreams family. Near Light

Market Challenges and Future Outlook

nDreams CEO Tim Gillo acknowledged the difficulties within the VR market, stating the company “fought hard” to avoid layoffs but recognized “undeniable commercial challenges.” He expressed continued belief in the potential of VR and XR, hoping the restructuring will allow nDreams to continue developing innovative games and experiences. Game Developer

The company, known for titles like Reach, Frenzies, Far Cry VR, and Powerwash Simulator VR, is now entering a collective consultation process with the employees impacted by the proposed changes.

About nDreams

nDreams is a leading VR game developer and publisher, recognized for groundbreaking titles in the virtual reality space. nDreams The company was acquired by Swedish conglomerate Aonic in 2023 for $110 million. Game Developer