Cloudhead Games Announces Significant Staff Reduction

Canadian virtual reality studio Cloudhead Games has confirmed that it will be letting go of approximately 70% of its workforce, effective January 7. In a LinkedIn post, CEO and CCO Denny Unger attributed the decision to unforeseen industry circumstances. Unger stated, "The current downturn in the gaming industry, coupled with the ongoing challenges facing VR, including insufficient platform funding, have left us with no choice but to take this step." Despite the setbacks, Unger expressed his continued faith in the potential of VR, describing it as a transformative medium. The company, which was founded in 2012 by Denny and Tracey Unger, will prioritize finding new applications for VR technology. Unger has pledged support for those affected by the layoffs and has initiated a "reverse recruiting" effort to aid them in finding new opportunities. The studio's most recent release, Pistol Whip, launched in 2019.