First Contact Entertainment, the development studio known for creating PlayStation VR titles such as Firewall Ultra and Firewall Zero Hour, has announced its closure at the start of 2024 after nearly eight years in operation. The company cited "the lack of support for VR within the industry" as a significant factor contributing to its downfall. First Contact expressed pride in its team, gratitude to their partners, investors, and dedicated players, acknowledging the innovative risks they took in pushing new technologies. Despite releasing Firewall Ultra in September 2023, the VR game received lukewarm reviews, applauding some aspects but criticising its use of eye tracking and limited content. The studio's history includes its founding by former Starbreeze developers in 2016, and unconfirmed hints of a potential project, Solaris: Offworld Combat II, which was inadvertently indicated in a deleted PlayStation Blog Germany post.

Why is First Contact Entertainment shutting down?

The company is shutting down due to the lack of industry support for virtual reality, which has made it financially unfeasible to continue operations.

Founded in 2016 by previous Starbreeze developers, First Contact Entertainment has been at the forefront of VR gaming. Known for the popular title Firewall Zero Hour, which offered players a new level of immersive tactical multiplayer shooting experiences on PlayStation VR, the studio set a firm foothold in the VR landscape. Their commitment to enhancing VR gaming with realistic experiences and innovative technology made them a well-regarded name among VR enthusiasts. The company's recent project, Firewall Ultra, aimed to follow up on the success of its predecessor but faced challenges from limited VR market support and mixed critical reception.