Update 01/04/2026: Polyarc confirmed to GamesIndustry.Biz that 30 employees were impacted by this layoff.
Original Story:
Soon after reporting on a major blow to the VR landscape with Rec Room's announced shuttering, prolific VR developer Polyarc, the studio behind the much-beloved Moss and Moss II games on PSVR and PS VR2, announced that it would be suffering layoffs. The studio is cutting an undisclosed number of developers after an "unsuccessful team-wide effort" to secure funding for its next project.
The news was shared with a post on the studio's LinkedIn page, and now, like every other VR-focused studio within the video game industry, its future is that much more uncertain than it was before, with the loss of staff and the cancellation of this project.
"Today we shared some very difficult news at Polyarc," the studio began. "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."
If you spoke to anyone who bought into PlayStation's first generation of VR, and asked them which PSVR games were worth playing, they'd likely include the original Moss among their list of recommended titles. It was arguably one of the best games ever released for PlayStation's line of VR headsets, and the sequel, Moss: Book II, lived up to the legacy of the first game.
As the entire video game industry continues to endure a turbulent period, with the VR sector seemingly taking several big hits within the first few months of 2026, Polyarc's future as a studio seems more uncertain than ever.
Its most recent release was Glassbreakers: Champions of Moss, a multiplayer game that hit Meta Quest, SteamVR, and Apple Vision Pro headsets in November 2025. Prior to that, it released Moss: Book II in 2022.
Hopefully, the studio is able to find its footing and land another project now that this one it had been shopping around is cancelled. Otherwise, we're likely not too far off from seeing yet another talented VR developer close its doors.
About the author: David has been writing about videogames, technology, and culture since 2020, with a focus on reporting daily news across multiple publications, including GameDaily.Biz, GameSkinny, and PlayStation Universe before joining Wccftech in 2025. David started contributing as Canada/US reporter for Wccftech's gaming section in 2025. Besides being up-to-date on the industry's movements, he loves interviewing developers, reviewing games, and writing intricate essays about the symbolism and layered meanings to be found in rich narratives as he's done for publications like GamesIndustry.Biz, LostInCult, and others. Outside of games he loves movies, music, theatre, his hometown, and his family, though not necessarily in that order.
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