Vertigo Games shuts Amsterdam studio amid VR market pressures

Vertigo Games has confirmed that it will shut down its Amsterdam-based virtual reality development studio, citing ongoing challenges in the VR gaming market.

The announcement was made by the company’s chief executive officer, Richard Stitselaar, in a post shared on X. He said the decision had been made after careful consideration and reflected the difficult conditions facing the virtual reality sector.

The closure marks the end of a studio that has played a notable role in the Dutch games industry over the past decade. Originally established as Force Field Entertainment in 2015, the studio was acquired by Vertigo Games in 2021. The move brought the Amsterdam team under the wider Vertigo Games organisation, which Embracer Group owns.

Challenging conditions continue to affect the VR industry

In his statement, Stitselaar said, “The VR market remains a challenging space,” and explained that the company had reached the difficult decision to close the Amsterdam operation after carefully assessing its position.

The announcement highlights the continuing pressures facing developers focused on virtual reality. While VR technology has advanced significantly in recent years, the market has struggled to achieve the same level of mainstream adoption seen in other areas of gaming. Developers and publishers continue to face questions about long-term growth, hardware adoption and sustainable investment.

The closure also comes at a time when many companies across the games industry are reassessing costs and restructuring their operations. Rising development expenses and changing consumer spending habits have led several studios worldwide to reduce staff numbers, cancel projects or close development teams altogether.

Although Vertigo Games has not provided further details about the impact on employees, the decision represents another example of the broader challenges affecting specialist VR studios. The company has not announced whether any staff members will be offered opportunities elsewhere within the organisation.

Embracer Group’s restructuring continues

Vertigo Games operates under Embracer Group, a company that has undergone significant changes during the past few years. The Swedish gaming conglomerate has faced financial difficulties, triggering a wide-ranging restructuring programme across its businesses.

As part of those efforts, Embracer reduced its workforce by thousands of employees and sold several assets. One of the most notable transactions involved the sale of Gearbox Entertainment, a major games developer known for the Borderlands franchise.

The company also revealed plans to divide its operations into three separate publicly listed businesses. The restructuring was designed to simplify its corporate structure and improve financial performance following a period of rapid expansion through acquisitions.

The closure of Vertigo Studios Amsterdam adds another chapter to Embracer’s broader efforts to streamline operations. While Vertigo Games has linked the decision directly to conditions in the VR market, the move comes amid wider cost-cutting measures across the parent company’s portfolio.

Industry observers have noted that many gaming companies are adopting more cautious strategies as they adapt to slower growth and increased competition. The latest development reflects the continued uncertainty facing both traditional game developers and those working in emerging technologies such as virtual reality.

Future of Dutch operations remains unclear

Questions remain about the future of Vertigo Games’ remaining operations in the Netherlands. The company currently maintains offices in both Amsterdam and Rotterdam and employs around 150 people across its business.

Vertigo Games has not confirmed whether the closure will affect its Rotterdam studio. As a result, it is unclear whether the company plans to consolidate development activities there or pursue other organisational changes in the future.

The Amsterdam studio holds a significant place in the Dutch gaming industry. It was founded by individuals who also helped establish Guerrilla Games, the studio behind the successful Horizon Zero Dawn series. Over the years, the team contributed to a variety of projects and became recognised as one of the country’s notable VR-focused developers.

Meanwhile, the Rotterdam studio has been responsible for the Arizona Sunshine franchise, a virtual reality zombie survival series that has gained a strong following among VR players. Vertigo Games has also developed and published several other VR titles, including Thief VR: Legacy of Shadow and Star Trek: Bridge Crew.

For now, the company has provided no additional information regarding future projects, staffing arrangements or the long-term role of its Rotterdam operation. As the VR sector continues to evolve, the closure of Vertigo Studios Amsterdam underscores the ongoing difficulties developers face in a still-developing market.