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
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
Founded in 1997 in Reykjavik, Iceland, CCP Games became
well-known in 2003 with the launch of “Eve Online.”
Hilmar Veigar Pétursson,
CEO of CCP Games.
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
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.”