Ready at Dawn Studios, a prominent developer with a 20-year history of creating immersive gaming experiences, has been shuttered by parent company Meta. The studio, known for its work on titles such as the Lone Echo series and the PSP classics Daxter and God of War: Chains of Olympus, will cease operations effective immediately.

According to reports, the decision aligns with Meta’s efforts to streamline operations within its Reality Labs division, which has faced significant financial challenges. The division, responsible for the company’s AR and VR initiatives, has incurred substantial losses in recent quarters, prompting a reassessment of its strategic priorities.

Founded by industry veterans, Ready at Dawn quickly established itself as a leading developer with a strong focus on technical innovation. While the studio’s foray into console gaming with The Order: 1886 did not achieve the anticipated commercial success, its subsequent work in virtual reality garnered critical acclaim. The Lone Echo series, in particular, is considered a landmark achievement in the VR space.

The closure of Ready at Dawn marks a significant loss for the VR gaming industry and raises concerns about the future trajectory of Meta’s VR ambitions. While the company has emphasized its continued commitment to the space, the financial pressures facing Reality Labs suggest potential challenges ahead.