Meta has decided to close Ready at Dawn, the studio known for creating VR games like *Echo VR* and *Lone Echo*, effective immediately, according to a report by Android Central. This decision comes just four years after Meta acquired the studio in 2020.

The closure appears to be linked to budget cuts within Meta’s Reality Labs division. A report from mid-July indicated that Meta plans to reduce the budget for Reality Labs by 20% by 2026. An internal memo from Gio Hunt, VP of Oculus Studios, which was shared with Android Central, supports this reasoning. Although Meta has stated that the cuts aren’t directly aimed at "saving money," the company is focusing on keeping Reality Labs within new budget limits to make a more significant long-term impact on VR development.

When asked for further details, Meta spokesperson Alaina Laszewski declined to comment. Meta's recent earnings report revealed that its Reality Labs division, which oversees VR initiatives, experienced a loss of nearly $4.5 billion.

When Meta originally acquired Ready at Dawn, the company emphasized that the studio would continue to create immersive and innovative VR content as an independently operated entity. Following the acquisition, Ready at Dawn released *Lone Echo II* for the Rift and Rift S platforms. However, Meta discontinued the popular *Echo VR* game in August 2023, reallocating resources to other projects expected to benefit the growing VR user base.

Despite Ready at Dawn’s legacy, which includes notable titles like *The Order: 1886*, *God of War: Chains of Olympus*, and *Daxter*, it seems that the studio’s latest project will not see the light of day following the shutdown.