According to reports from former employees, VR pioneer studio Survios is on the verge of closing after laying off the majority of its development team. This is the latest blow to Sony's VR headset, whose demise seems inevitable.
The Los Angeles-based studio Survios, known for VR titles such as “Alien: Rogue IncursionThe developer of "Creed: Rise to Glory" and "The Game" laid off almost its entire staff in May 2026. According to statements from affected employees on LinkedIn, the team responsible for active game development was completely disbanded. This not only jeopardizes the planned further development of current titles but also marks another low point for the PS VR2 platform, which has lost two of its most prominent supporters within just a few weeks.
Devastation after the Alien release
The layoffs come just a few months after the release of Alien: Rogue Incursion. The game was originally conceived as a multi-part experience ("Part One") and was intended to take the VR horror genre to a new technical level.
According to combat designer Dylan Ralston, the studio is now being "effectively shut down." Senior game designer Alissa Smith confirmed that "the majority of the team" is affected, while technicians like Tim Schumann stated that this development had been anticipated for some time.
PS VR2 loses its star attractions
The news comes immediately after the massive job cuts at Polyarc (Moss I & II), which had to lay off two-thirds of its workforce in March 2026. This means that Sony's VR headset is losing the studios behind its most important system sellers in a very short time.
While "Alien: Rogue Incursion" achieved a solid but not outstanding Metascore of 74, its commercial failure is symptomatic of the stagnating VR hardware market. Although Sony refuses to release official sales figures, this often suggests that the numbers are insufficient to refinance expensive productions like an episodic "Alien epic."
For buyers of "Alien: Rogue Incursion," this is the worst possible news. Since the game was explicitly marketed as the first installment in a saga, a continuation of the story is virtually impossible under these circumstances. Survios has not yet made an official statement, but the shutdown of the development teams leaves little room for patches or DLC.
The VR market is undergoing painful consolidation: Without direct funding from platform holders like Sony or Meta, the also used the red pen It seems the era of "AAA VR Studios" will finally be over in 2026. The latest release is... PS VR2 update for "Microsoft Flight Simulator 2024", but a new title alone will not be enough to save the headset in the long run.
First:
PSVR2 is dead, and it already was at launch.
Secondly:
The studios are to blame themselves.
Polyarc are partly ignorant and arrogant. They give away cool stuff to YouTubers and other people for advertising purposes, but also, upon request, they'll take advantage of people for money and act completely clueless when it comes to their merch.
Then they'll release the next multiplayer game, MOS 11, with Glassbreaker because they can make "quick" money with it. Well... wait for it... people want Moss 3, not this garbage 🐁
Survivos did the same thing with Alien: Rogue Incursion. First, they didn't inform players that the story wasn't even finished, then they released a technically disastrous version, then they released a non-VR version to squeeze out even more money, and now they're kicking people out.
It's so sad, but the "small" developers make such stupid decisions and are often so player-unfriendly that they are in no way inferior to the big AAA developers.
Maybe it has to go this way 🏃♂️
Yes, VR was already dead before it even launched, but no, some experts still think Resident Evil is so successful because it has a VR mode. This whole VR thing wastes so much money and ties up resources that could have been better spent on more content, like a Resident Evil 4 remake. Instead of the VR mode, they could have invested the money and time in a larger Mercenaries mode with more playable characters and levels. I hope Capcom goes all in with Requiem. I'd rather buy DLC for more levels and new characters than a free VR mode.
Nobody cares about VR, regardless of the manufacturer. That's why there are fewer games for it.
Great, that means no further content for the non-VR version of the game, and yet the game is brilliant, an action-packed version of Isolation.