Meta has reportedly closed down Ready at Dawn, its first-party VR studio known for creating popular VR games like Lone Echo and Echo VR. The closure is effective immediately and comes nearly three years after the studio's last major release.

Ready at Dawn, acquired by Meta in 2020, was responsible for developing critically acclaimed VR titles such as Lone Echo and its multiplayer spinoff, Echo VR. The studio's last major release was Lone Echo II in late 2021. Since then, the studio has not announced or released any new games and even shut down the popular Echo VR in 2022.

The closure is reportedly part of Meta's efforts to reduce spending in its Reality Labs division. Meta has reportedly encouraged Ready at Dawn employees to apply for positions elsewhere within Oculus Studios, indicating a desire to retain talent despite the studio's closure.

Analyst QuickTake : The news comes from Meta’s Q2 FY2024 results , which saw its Reality Labs division recording a USD 4.48 billion loss. Additionally, the company stated that it expects operating losses for the division to increase meaningfully YoY due to ongoing product development efforts.