- CCP Games
- Icelandic gaming company CCP Games is shutting down two studios in the US and the UK. It said it plans to put its VR development plans on “ice” and focus more on mobile and PC games.
CCP Games – the gaming company behind sci-fi blockbuster “EVE Online” and virtual reality spin off “EVE Valkyrie” – has announced that it is shutting down two of its five offices and laying off close to 100 staff as it rethinks its virtual reality (VR) ambitions.
A VR studio in Atlanta is being shut down, while another in Newcastle, UK, is being sold off. The latter spearheaded the development of “EVE Valkyrie.”
Studios will remain in London, Reykjavík, and Shanghai and CCP is providing relocation opportunities or severance packages to some of the staff that are affected.
VR has been hailed as a new technology that will revolutionise the world of gaming and big tech companies like Facebook, Samsung, and HTC have invested billions in creating headsets that support VR. But the VR market has not proved to be as big as the tech giants anticipated and VR gaming companies are being forced to rethink their strategies.
“We will be shifting our focus to our PC and mobile initiatives,” said CCP Games CEO Hilmar Pétursson in a statement sent to Business Insider.
Founded in 1997 in Reykjavik, Iceland, CCP Games became well-known in 2003 with the launch of “Eve Online.”
It was one of the first gaming companies to embrace VR with the launch of “EVE Valkyrie” in March 2016 and it writes on its website that it thinks the technology “will play an increasingly important role in gaming, and beyond, in the years to come.”
“EVE Valkyrie” is played by a loyal fan base around the world and it is hailed as one of the best VR gaming experiences.
It was the game Oculus used as a demo for the Crystal Cove version of its development kit in 2014, before Oculus was acquired by Facebook.
Other VR games developed by CCP include “Sparc” and “Eve Gunjack.”
Here is the full statement from Pétursson:
“Today we have made tough, but important, changes to CCP in response to how we see the gaming market evolving in the coming years. We have been front and center in the second wave of VR and our belief in the long-term transformative power of the technology remains strong.
“Despite the success of the VR games we have released we will be shifting our focus to our PC and mobile initiatives, and will be centralizing those initiatives, along with the support of our existing VR games, to our offices in Reykjavík and London. We will continue to support our VR games but will not be making material VR investments until we see market conditions that justify further investments beyond what we have already made.
“I am very proud of our VR games and, more importantly, of the people here who made them.
“These changes in strategy come with some tough decisions relating to our overall structure as a company. CCP is in a strong position to make these changes, and we are taking great care to support our departing employees to the very best of our ability. We will be offering relocations to some to our London office where we will be building up our efforts in addition to our development activities in Reykjavík.”