The CEO of Cloudhead Games, the studio responsible for titles such as Pistol Whip and The Gallery, has announced that the company has been forced to lay off 70% of its staff.
Speaking in a statement this week, Denny Unger commented:
Due to industry forces beyond our control, Cloudhead must make the difficult choice to reduce our workforce effective January 7th 2026. 30% of us will remain to continue the mission. The team leaving us are consummate professionals and wonderful people in general. We took great collective pride in creating a culture that was as caring about VR content as they were working to support each other. Each and every one of them shared a true sense of “give a damn” as we worked through still unseen projects, and the will all be deeply missed at our studio.
Unger added that the studio’s “belief remains in the power of VR as a medium, as a shared dream machine that will one day transform humanity. We have no doubt VR’s mainstream relevance is predestined, with future devices that do ‘everything,’ but it will take the studios like ours to be there and when that times come.”
Pistol Whip was originally released in 2019 for Oculus Quest and Microsoft Windows, with a PS4 version arriving in July the following year. As of February 2023 however, the rhythm-based shooter has supported by PSVR 2, which you can read more about in full review here.
[Source – Clouded Games via UploadVR]