The VR gaming space has taken yet another hit. Polyarc, the studio behind the much-loved Moss series, has announced layoffs after its efforts to secure funding for a new project came up short.
The news was shared via the studio’s LinkedIn page, with Polyarc confirming it had to “significantly reduce the size of the company” following the cancellation of a major project. The number of staff affected hasn’t been disclosed.
“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,” the studio wrote, adding that it was saying goodbye to “many talented people who have been a meaningful part of what we’ve built.”
Polyarc Studio has a strong legacy
Polyarc built its reputation on Moss and Moss: Book II, two of the most well-regarded titles in the PSVR library. The original Moss was widely considered among the best games ever released for PlayStation’s VR headsets, with its sequel doing justice to that legacy.
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Its most recent release was Glassbreakers: Champions of Moss, a multiplayer title that launched across Meta Quest, SteamVR, and Apple Vision Pro in November 2025.
This news follows Rec Room’s recently announced shuttering, painting a grim picture for the VR sector early in 2026. With staff cuts and a cancelled project now behind it, Polyarc’s path forward is far from clear, and another closure can’t be ruled out if a new project doesn’t materialise soon.
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