Industry

The End of an Era: Meta Shuts Down “Ready at Dawn”, Creators of God of War PSP Classics

Sagar Mankar1 month ago1 month ago07 mins

Just four years after being acquired by Meta (formerly Facebook), the acclaimed game developer Ready At Dawn has been shut down by its parent company.

This decision comes as a surprise to many in the gaming and VR industries, as Ready at Dawn was considered one of Meta’s most promising studios.

According to reports from Android Central, the closure of “Ready At Dawn” is part of Meta’s efforts to stay within new budget constraints and ensure the “better long-term impact” of its Oculus Studios, now known as Reality Labs.

While the move is not a direct cost-cutting measure, it does signal Meta’s shifting priorities in the VR space.

The Rise and Fall of “Ready At Dawn”

Ready At Dawn’s history dates back to 2003, when it was founded by former employees of renowned studios like Naughty Dog and Blizzard Entertainment.

The studio quickly made a name for itself, particularly on the PlayStation Portable (PSP), where it produced multiple acclaimed titles like Daxter (2006), God of War: Chains of Olympus (2008), and God of War: Ghost of Sparta (2010).

However, the studio’s fortunes took a turn with the mixed reception of its ambitious project for PS4, The Order: 1886. The game received praise for its visuals and storytelling but faced criticism for its short length and lack of gameplay innovation.

After this failure, Ready At Dawn shifted its focus to VR gaming, launching Lone Echo for the Oculus Rift in 2017 followed by Lone Echo II in 2021. This move proved to be a wise one as both games were well-received by the public and critics, receiving several awards.

This success was a significant factor in Meta’s decision to acquire Ready At Dawn in 2021, as Meta sought to strengthen its VR content offerings.

What Led to Ready At Dawn’s Closure?

Meta’s decision to shutter Ready at Dawn wasn’t sudden. The studio had been struggling to maintain its momentum after the release of Lone Echo II. The game, while critically acclaimed, failed to generate the kind of ongoing success Meta might have hoped for.

In early 2023, Meta announced the shutdown of Echo VR, one of the studio’s flagship titles, due to its low player base. This decision led to significant layoffs, impacting a third of the studio’s workforce.

Though Meta has heavily invested in emerging technologies like AI and VR in recent years, it’s been costly. Reality Labs, Meta’s division focused on these technologies, reported a $353 million revenue in Q2 2024, a 28% increase compared to Q2 2023. However, this is overshadowed by the over $4 billion spent during the same period, indicating substantial losses.

Meanwhile, Meta’s Chief Financial Officer, Susan Li, informed investors that these losses are expected to continue this year due to “ongoing product development efforts and our investments to further scale our ecosystem.”

However recent reports from The Information suggest that Meta is planning to reduce the budget of its Reality Labs division by 20% by 2026.

The budget cuts have led to speculation about many game or hardware cancellations, but we didn’t expect the closing of the entire studio. It’s 2024’s effect maybe.

2024! The Year of Studio Closures and Layoffs

Ready At Dawn’s closure is part of a troubling trend in 2024, with many studios facing similar fates. The gaming industry has been hit hard by mass layoffs and studio closures, with thousands of talented developers losing their jobs.

Just in the past week, Bungie faced its second round of layoffs despite the success of Destiny 2: The Final Shape, while Game Informer magazine ceased operations entirely after 33 years.

Earlier this year, Microsoft closed four of its studios, including Arkane Austin and Tango Gameworks, the latter having released Xbox’s acclaimed title, Hi-Fi Rush.

Even, PlayStation also shut down London Studio and Deviation Games, the latter of which had not yet released a game.

Here is the list of the closed game studios in 2024 so far: