# Another Tough Week For Games: Ubisoft + Meta Layoffs | Kurt & Lucy Gotcha Covered

Source: https://www.youtube.com/watch?v=5b3BQeKPes4
Recap page: https://rapidrecap.app/video/5b3BQeKPes4
Generated: 2026-01-17T17:33:09.246+00:00

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## Quick Overview

The hosts discuss recent industry layoffs, specifically Meta shutting down Twisted Pixel Games and Ubisoft making cuts at Massive Entertainment and closing Ubisoft Halifax, while also expressing cautious optimism for the future of VR, largely contingent on open platforms like Steam potentially succeeding where Meta's walled garden has created inaccessibility.

**Key Points:**
- Meta shut down Twisted Pixel Games, which developed titles like 'Asgard's Wrath' and 'Resident Evil 4 VR', highlighting ongoing industry contraction.
- Ubisoft conducted layoffs at Massive Entertainment, affecting 'The Division' and 'Avatar' studio work, and completely shut down Ubisoft Halifax.
- The hosts believe Meta is both the best and worst thing for VR, praising its accessibility for getting hardware into homes but criticizing its 'chokehold' on content.
- The success of VR in 2026 hinges on open platforms, with the upcoming 'Steam Frame' potentially opening gates to the Steam library, unlike current fragmented ecosystems.
- Kurt expressed severe motion sickness with full-motion VR, contrasting with Lucy who trained herself to overcome it, though ultimately finding the experience only 'a little different' but not fundamentally better.
- The hosts recommended several detective games during the Steam Detective Fest, including 'The Golden Idol' sequel, 'Death at Fleming Mana', 'Desktop Explorer', 'Obsidian Moon', 'Her Story', 'Paradise Killer', 'Contradiction', and 'Disco Elysium'.
- The speakers predict Ubisoft's future involves continued 'death by a thousand cuts' as they struggle with untenable size and narrow margins, despite successful titles like 'Shadows' and 'Siege'.

**Context:** This episode of 'Kurt & Lucy Got You Covered' focuses on recent negative developments in the gaming industry, namely layoffs and studio closures at Meta and Ubisoft, while also dedicating significant time to discussing the prospects and challenges facing Virtual Reality (VR) technology leading up to 2026. The discussion is structured around viewer letters covering these major news items and a themed segment about detective games coinciding with the Steam Detective Fest.

## Detailed Analysis

The show opens by confirming layoffs, detailing Meta's shutdown of Twisted Pixel Games (creators of 'Asgard's Wrath' and 'Resident Evil 4 VR'), and Ubisoft's cuts, including closing Ubisoft Halifax and layoffs at Massive Entertainment (responsible for 'The Division' and the 'Avatar' game). Regarding VR, Kurt noted his persistent motion sickness, while Lucy shared her successful, albeit not life-changing, experiment in gaining 'VR legs.' They heavily criticized platform fragmentation, arguing that companies like Meta put a 'chokehold' on VR, making it inaccessible due to exclusive content across different hardware (Quest, PlayStation VR2, PC). They hold hope for the 'Steam Frame' to unify access to the Steam library. For Ubisoft's future, they predict continued cuts, viewing the company as puzzlingly large and unsustainable despite having successful titles like 'Siege' and 'Shadows,' noting that anything not making 'Assassin's Creed money' is deemed worthless. The latter half of the show pivoted to the Steam Detective Fest, where they recommended numerous titles across various deduction styles, including 'Disco Elysium' and 'Paradise Killer,' and they concluded by discussing exciting 2025/2026 releases like 'Dead of Night 2' and Capcom's upcoming slate, praising Capcom for skillfully blending remakes with new content.

### Industry Layoffs and Closures

- Meta shut down Twisted Pixel Games, responsible for 'Asgard's Wrath' and 'Resident Evil 4 VR'
- Ubisoft is making cuts, including closing Ubisoft Halifax and layoffs at Massive Entertainment working on 'Star Wars Outlaws'.

### VR Prospects and Platform Wars

- Meta is criticized for creating a 'chokehold' on VR content despite making hardware accessible
- Hope lies with the 'Steam Frame' opening access to the Steam library for better experiences like 'Half-Life: Alyx'.

### Ubisoft's Troubled Trajectory

- The company has ballooned unsustainably, leading to 'death by a thousand cuts'
- Successes like 'Siege' and 'Lost Crown' are overshadowed by the expectation of 'Assassin's Creed money'.

### Steam Detective Fest Recommendations

- Kurt provided a list highlighting different deduction styles: 'Her Story' (search engine deduction)
- 'Paradise Killer' (open-world courtroom)
- 'Contradiction' (FMV camp)
- 'Disco Elysium' (classic RPG).

### Demo and Niche Detective Games

- Lucy played demos including 'Death at Fleming Mana' (more approachable than 'Golden Idol') and 'Obsidian Moon' (card-based evidence management with time as currency)
- Desktop style games like 'Desktop Explorer' were noted as a growing subgenre.

### Anticipated Future Releases

- Lucy is most excited for 'Dead of Night 2', praising the first game's unique 'slideshow' horror style and green screen integration
- Both anticipate 'Zero Parallax' (from former Disco Elysium team members) and Capcom's 'Pragmata' and 'Onimusha'.