Layoff of 300 employees confirmed at Oblivion Remastered studio
In a surprising move, Virtuos, the co-development studio behind popular remasters such as Oblivion Remastered and Metal Gear Solid Delta: Snake Eater, has announced a series of layoffs affecting around 7% of its global workforce. The mass redundancies, reportedly totalling 270-280 employees, are primarily due to a company-wide "restructure" aimed at addressing lower occupancy and slower demand caused by structural shifts in the gaming industry.
The layoffs are influenced by several factors, including reduced project occupancy and slower demand, industry structural shifts, financial policies post-development, potential integration of generative AI, and a wider industry trend of layoffs. Virtuos has reportedly made significant efforts on Oblivion Remastered with a policy of over-quality relative to the budget and a contract without royalties, a move that some former employees have described as a "lose-lose deal."
The economic climate may have also played a role in the potential layoffs, with even successful companies like Microsoft announcing layoffs of 9,000 employees. This trend suggests a common pattern driven by investor pressures and rising development costs, rather than direct project failures.
Despite the layoffs, Virtuos has reassured that ongoing projects, including Oblivion Remastered updates, Cyberpunk 2077 support, and Metal Gear Solid Delta, will continue unaffected. The company is providing separation packages, career transition assistance, and possible redeployment opportunities to those impacted, emphasizing a commitment to manage the transition thoughtfully.
Jody Macgregor, a former music journalist and current writer for PC Gamer, has written about various topics in the gaming industry. His first article for PC Gamer was about the audio of Alien Isolation, published in 2015. Macgregor lived up to his promise to play every Warhammer videogame, and has since written about why Silent Hill belongs on PC, why Recettear: An Item Shop's Tale is the best fantasy shopkeeper tycoon game, and how weird Lost Ark can get.
The ongoing layoffs at Virtuos were reported by Gauthier 'Gautoz' Andres, co-founder of French videogame website Origami, on Bluesky. There may not be as many big co-development projects as expected, potentially impacting the industry as a whole.
Virtuos, with offices around the world, has contributed to various games, including Dark Souls Remastered, Age of Mythology Retold, Oblivion Remastered, and the upcoming Metal Gear Solid Δ. The teams at Virtuos were put to the test for Oblivion Remastered, a game that was doomed to see its profitability questioned. The ex-employee of Virtuos expressed concern about the potential layoffs, stating that they could occur even after working on a portfolio-enhancing project.
As the gaming industry evolves, it remains to be seen how companies will adapt to changing market conditions and the increasing integration of AI technologies. The layoffs at Virtuos serve as a stark reminder of the challenges facing the industry and the need for a thoughtful approach to managing change.
- The layoffs at Virtuos, despite their impact on nearly 300 employees, will not affect ongoing projects such as Oblivion Remastered updates, Cyberpunk 2077 support, and Metal Gear Solid Delta.
- In the gaming industry, there is a trend of layoffs, with even successful companies like Microsoft announcing significant reductions in their workforce.
- The potential integration of generative AI and increasing development costs, combined with structural shifts in the gaming industry, may have contributed to the layoffs at Virtuos.
- As technology continues to evolve, including the increasing use of AI in gaming, companies like Virtuos will need to find new ways to adapt to changing market conditions.
