The video game crash of 1983 is legendary, and it’s entirely possible we’re witnessing history repeat itself in the virtual reality market. Over the past two years, free-to-play games have transformed Meta Quest’s app store into something resembling Google Play, and the company closed most of its studios in January, raising questions about its commitment to VR gaming.
A Nostalgic Success Story
Job Simulator, one of VR’s early success stories, remains revered for its humor and interactive gameplay. The game has been installed over 6 million times, and its multiplayer sequel, Dimensional Double Shift, surpassed 1 million installs just a year after its beta launch.
However, Dimensional Double Shift’s success comes in a different market than Job Simulator’s 2016 debut on Steam and PlayStation VR. Today’s Meta Quest audience often gravitates toward free-to-play mobile-style games rather than larger, more ambitious titles.
Owlchemy Labs CEO Andrew Eiche believes the shift is toward “play as play.” He told me, “We had a large push for many, many years towards competitive multiplayer games, and I think you’re starting to see a little bit of a backlash.”
Many gamers simply don’t have the time or skill to compete at a high level. Eiche noted that in competitive games, players often feel pressured to perform or face criticism. Dimensional Double Shift, and games like it, offer a different experience—a focus on cooperative fun and relaxed gameplay.
The Downside of Free
Meta’s handling of the Quest app store has drawn criticism, with the influx of low-quality games alongside titles like Batman: Arkham Shadow and Skydance’s Behemoth leading to a reported drop in sales compared to two years ago.
Meta’s CTO, Andrew Bosworth, acknowledged mistakes were made and that the company is working to improve the situation, but many believe it’s too late.
Eiche believes the current situation could be VR’s “Atari moment,” where a company overextends and must scale back. Whether Meta will become the Atari of VR remains to be seen.
Bosworth offered a more optimistic view, stating on February 3, 2026, in an Instagram AMA, “We’re still investing more in content than anyone else. We’re even investing in more content than I think we were even a year ago.”
While Meta’s content investment is substantial, the specifics remain unclear. Reality Labs spending is expected to remain consistent in 2026 despite the studio closures.
Despite the challenges, many remain optimistic about the future of VR hardware. Eiche is “very excited for the Steam Frame and Project Aura,” two major releases expected in 2026.
Meta is also developing a lighter, glasses-like headset, codenamed Project Phoenix, slated for release next Spring. Bosworth teased the new device during the February 3rd AMA, stating that “not just the next one device, but the next two devices that we’re [building] are very exciting.”
The key question is whether Meta can address the issues with the Quest store before launching its new hardware. As Eiche pointed out, “The way the store is structured has an enormous impact on what the games look like.”
