TL;DR
Combat Waffle Studios has announced layoffs as part of efforts to adapt to current VR industry challenges. The studio’s flagship game, Ghosts of Tabor, remains their focus, but ongoing industry turmoil impacts staffing. Details on the extent of layoffs are still emerging.
Combat Waffle Studios, the developer behind the successful VR extraction shooter Ghosts of Tabor, has announced layoffs affecting a portion of its staff, citing industry challenges and a canceled project with a large platform partner.
In a LinkedIn post, Combat Waffle Studios CEO Scott Albright stated that the studio made the difficult decision to reduce its team size, expressing gratitude for departing employees’ contributions. The layoffs follow the cancellation of a significant project with a major platform partner, which the studio attributes to current turmoil in the VR industry.
As of July 2025, the studio employed around 50 staff members, prior to moving into a larger facility capable of supporting up to 150 employees. Despite the layoffs, the studio emphasized that Ghosts of Tabor remains its core product, with plans to expand its universe alongside partners.
Impact of Industry Turmoil on VR Developer Staffing
This development highlights ongoing instability within the VR industry, with multiple studios facing layoffs, project cancellations, and shutdowns. Despite Ghosts of Tabor’s commercial success, broader economic and market pressures are forcing companies to cut costs and reassess their project pipelines, potentially affecting future VR content and innovation.
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VR Industry Challenges and Recent Studio Cancellations
Since 2025, several VR studios and projects have been shuttered or canceled, including Meta’s VR studio closures and canceled projects like Batman: Arkham Shadow and Harry Potter VR titles. Combat Waffle Studios’ layoffs follow a pattern of industry contraction, driven by funding cuts and shifting platform priorities, notably Meta’s reduced investment in VR gaming.
Ghosts of Tabor, released in early access in 2023 and generating over $30 million, remains a standout success in VR, but the broader market downturn has led to cautious staffing and project management across the sector.
“Today we made the difficult decision to reduce the size of our team. As part of this, we are saying goodbye to a number of talented individuals who have contributed meaningfully to our work. We are grateful for their efforts and are committed to supporting them as they transition to new opportunities.”
— Scott Albright, CEO of Combat Waffle Studios
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Extent of Staff Reductions and Future Projects Unclear
It is not yet confirmed how many employees have been affected by the layoffs, nor how many remain. Details about future projects or plans beyond Ghosts of Tabor are still emerging, and the studio has not announced specific new initiatives at this time.
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Next Steps for Combat Waffle Studios and VR Industry
The studio has indicated continued focus on expanding Ghosts of Tabor and supporting its existing projects. Industry analysts expect further adjustments across VR developers as market conditions evolve, with potential updates on future titles or collaborations to be announced in the coming months.
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Key Questions
How many staff members were laid off at Combat Waffle Studios?
The exact number of layoffs has not been publicly disclosed. As of July 2025, the studio employed around 50 staff, but the current impact remains unconfirmed.
Will Ghosts of Tabor continue to receive updates or expansions?
Yes, the studio has reaffirmed that Ghosts of Tabor remains their core focus, and they plan to expand the game’s universe alongside partners.
Are there plans for new VR projects from Combat Waffle Studios?
There are no official announcements yet. The studio’s future projects are uncertain, especially given recent industry cancellations and market pressures.
What caused the project cancellation with the large platform partner?
The studio cited industry turmoil and strategic realignments as reasons for the project cancellation, but specific details have not been disclosed.
How does this affect the overall VR industry?
The layoffs reflect broader challenges in VR development, including funding cuts, project cancellations, and shifting platform priorities, which could impact the pace of innovation and new releases.
Source: Road to VR
