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Owlchemy CEO: VR is still an emerging market because it hasn't passed the 'cafe test'

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Owlchemy CEO: VR is still an emerging market because it hasn't passed the 'cafe test'

Gamescom 2025 | Read more Gamescom coverage from the Game Developer team right here, including interviews from the show, analysis of leading developer trends, and more.

Andrew Eiche also claims layoffs are becoming commonplace within the VR industry because some companies refuse to meet audiences with what they want.

Andrew Eiche, CEO of Google-owned mixed reality studio Owlchemy Labs, has some clear thoughts on why the VR market has yet to become a truly established presence within the video game industry.

Since the turn of the year, notable VR studios including Survios, Twisted Pixel Games, Sanzaru Games, Armature Studio, Vertigo Games, and more have either laid off numerous employees or shut down entirely. Is the VR industry suffering in the same way as other studios across the gaming sector, or are there unique challenges preventing companies in the space from finding sure footing?

During a conversation with Eiche at Gamescom 2026, the long-serving chief exec suggested the VR market is still emerging because the form factor of hardware is simply too unwieldy. "We haven't found our form. Look at forms, right? It's easy to look at the iPhone and say 'it just happened,' but you need to go back to the Motorola StarTAC in the '80s [to understand how that journey happened]. There is a very realistic chance that the headsets we use today that we feel might be our final form are equivalent to Nokia flip phones or the Motorola Razr," says Riche.



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