The next generation arms race is currently in full swing as both Microsoft and Sony prepare to launch their new systems later this year. While both consoles still have plenty of unknowns surrounding them, Sony has previously confirmed that its focus onVR will be making the jump to next gen. However, one particular studio focused on virtual reality will not be making it to the next console cycle.

In a recent announcement,Sonyconfirmed that its Manchester UK games studio is being closed down. Sony revealed that the decision was made to essentially improve organizational efficiency and operational effectiveness. As such, the studio was seen as redundant and the decision was made to close down the studio.

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The Manchester studio was originally established back in 2015 to focus on VR games for the PlayStation 4. Unfortunately, since that time, the studio hasn’t actually had any releases, which was likely factored into Sony’s decision making process.

While Sony remains committed to PSVR, the Manchester Studio becomes the third UK based developer under Sony to close its doors in four years. In 2016, Evolution Studios, better known forracing games likeDriveCluband theMotorStormseries, was shut down. A year later, Guerrilla Games offices in Cambridge also closed its doors for good. In an odd coincidence, both studios were working on VR projects at the time.

It’s worth noting that Sony still has a presence in the United Kingdom even after all the closures lately, as Media Molecule and London Studio are still working on content. The well received shooterBlood & Truthlaunched in the Spring of last year for PlayStation VR. After a lengthy development cycle, Media Molecule is preparing to launch its creative titleDreamsfor the PS4 and PSVR. Early Access has allowed players to tap into all sorts of creative spaces to create some truly awe-inspiring content like arecreated version of Cyberpunk 2077and even hyper realistic looking food.

A new PlayStation 5 rumor doubles down on Sony’s commitment to VR, indicating the company could also be preparing a VR2 reveal alongside the PlayStation 5 console. The report comes from Immersive VR Education, a studio focused on the educational potential of virtual reality. The claim specifically states that the new headset is aimed at expanding the high-end VR user base, hinting at the added power and potential compared to its current version. The report also seems to align withnew VR patents that Sony filedlast year.