TL;DR
Combat Waffle Studios has announced layoffs as part of efforts to realign with the current VR industry climate. The studio remains committed to ‘Ghosts of Tabor’ despite financial and industry pressures.
Combat Waffle Studios has announced it is laying off a number of employees as part of a strategic effort to adapt to the current state of the VR industry, according to a statement from CEO Scott Albright. The move comes amid broader industry turbulence and the cancellation of a major project with a large platform partner, though the studio affirms its focus remains on its flagship game, Ghosts of Tabor.
In a LinkedIn post, Combat Waffle Studios CEO Scott Albright confirmed that the studio has made staffing cuts, describing the decision as difficult but necessary to align the company with the challenges facing the VR industry. The studio, known for its hit extraction shooter Ghosts of Tabor, has seen significant success, with over 10 million units sold and more than $30 million in revenue prior to its PlayStation VR 2 release in 2025.
Albright stated that the layoffs are linked to the cancellation of a project developed in collaboration with a major platform partner. The exact number of affected staff remains undisclosed, but in July 2025, Albright noted the studio employed around 50 people, with plans to expand its physical space to accommodate more staff. The studio has also released other titles in 2025, including multiplayer zombie shooter Silent North and survival game Grim, though these have not matched Ghosts of Tabor’s success.
The announcement highlights ongoing struggles in the VR industry, including the shutdown of other studios such as Survios and Vertigo Studios, as well as the cancellation of several high-profile projects by Meta and other publishers. Despite these setbacks, Combat Waffle emphasizes its continued commitment to Ghosts of Tabor and its long-term vision for VR gaming.
Impact of Staff Reductions on VR Industry Dynamics
The layoffs at Combat Waffle Studios reflect broader challenges facing VR game developers amid industry contractions, project cancellations, and funding cuts. While the studio remains committed to its flagship title, these developments underscore the uncertain future for many VR studios and projects, potentially affecting innovation and consumer offerings in the sector.
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Industry-Wide Challenges and Studio Restructurings
Since 2025, the VR industry has experienced significant upheaval, including the cancellation of multiple high-profile projects from major publishers like Meta, and the shutdown of several established studios. Combat Waffle’s success with Ghosts of Tabor stood out in a difficult environment, but the recent layoffs indicate that even successful studios are not immune to industry-wide financial pressures and strategic realignments.
The company’s move follows Meta’s broad cutbacks and the cancellation of projects such as a Batman: Arkham Shadow sequel and a Harry Potter VR game, which exemplify the current economic and strategic challenges in VR development. The industry’s shift towards consolidation and focus on fewer, larger projects has led to layoffs and project cancellations across the board.
“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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Unclear Scope and Future of Studio Projects
It is not yet clear how many staff members were laid off or how these cuts will impact ongoing or future projects beyond Ghosts of Tabor. The specific financial or strategic details behind the decision remain undisclosed, and the studio has not announced any new titles or major project cancellations beyond the known project with the large platform partner.
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Next Steps for Combat Waffle Studios and Industry Recovery
Combat Waffle Studios is expected to continue supporting Ghosts of Tabor and may reassess its staffing and project pipeline in the coming months. Industry analysts will be watching for further announcements regarding new projects, potential studio restructuring, or shifts in their strategic focus. Meanwhile, the wider VR industry will likely see continued consolidation and project cancellations as companies adapt to ongoing economic pressures.
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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 disclosed. In July 2025, the studio employed around 50 staff, but the current number affected remains unknown.
Will Ghosts of Tabor be affected by these layoffs?
The studio has reaffirmed its commitment to Ghosts of Tabor, indicating that the game remains its core focus despite staffing reductions.
What caused the layoffs at Combat Waffle Studios?
The layoffs were triggered by the cancellation of a project developed with a large platform partner, as part of broader efforts to align the company with industry conditions, according to CEO Scott Albright.
Are there plans for new VR projects from Combat Waffle?
No new projects have been announced. The studio is currently focused on supporting Ghosts of Tabor and its existing collaborations.
How does this impact the overall VR industry?
The layoffs reflect ongoing economic and strategic challenges in VR, with several studios facing closures or project cancellations, indicating a period of consolidation and uncertainty in the sector.
Source: Road to VR
