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Polyarc, the studio behind acclaimed VR adventure series Moss and Moss: Book II, has confirmed it has significantly reduced staff after failing to secure funding following the cancellation of an unannounced project, according to a report on Push Square.
The studio, which earned praise for creating some of the most polished narrative-driven experiences on Sony's PlayStation VR platforms, disclosed the downsizing in the wake of the cancelled title. Polyarc's Moss games have been cited repeatedly as examples of strong VR design alongside launches such as Astro Bot Rescue Mission.
The move underlines growing concerns about investment and long-term support for VR development on PlayStation platforms. Sources close to the matter told Push Square that Polyarc had sought outside funding to continue its next project but was unable to secure the necessary backing, forcing the studio to scale back its operations.
The layoffs will reduce Polyarc's capacity to develop new VR content in the near term and represent a setback for a studio that had become a standard-bearer for single-player VR adventures. The wider VR landscape has seen intermittent investment and studio restructures in recent years, with several independent teams adjusting scope or pivoting away from headset-first projects.
Polyarc's confirmation follows an industry trend in which smaller studios face heightened financial pressure when projects are cancelled or fail to attract external investment. While the affected studio has not published a detailed breakdown of numbers or future plans at the time of the report, the announcement has prompted renewed debate about sustainable funding models for mid-sized developers working in niche hardware ecosystems.
Further coverage and direct statements from Polyarc are expected as the situation develops. The original report can be read on Push Square.