Kinda Funny Games Daily: VR Gaming Officially DEAD?!

Episode Date: January 13, 2026
Hosts: Greg “GameOverGreggy” Miller, Blessing Adeoye Jr.
Podcast Theme: The daily pulse of gaming news with irreverent discussion, focusing this episode on the fate of VR gaming, shifting trends in game development, and the realities of the industry.

Episode Overview

This episode dives deep into the day's biggest stories across VR, the fate of Sega’s classic franchises, industry layoffs, emerging tech like wearables and AI, and personal reflections on industry trends. The hosts dissect news of Meta's substantial VR studio closures and what this means for the future of virtual reality gaming, while considering the ever-increasing costs and risks faced by developers. The tone is candid, passionate, and laced with classic Kinda Funny banter.

Key Topics & Insights

1. The State of Sega’s Classic Franchises

00:35 – 09:45

• Jet Set Radio & Crazy Taxi: Will They Ever Actually Return?

  • Immediate speculation about the absence of new info on Sega's Jet Set Radio and Crazy Taxi games.
  • Blessing and Greg debate whether these beloved IPs have long-term viability or will ever escape development limbo.
  • The increasing cost and risk for corporations to revive niche titles is emphasized.
    • Blessing: “I could see a reality where these games just never pop up again... is Crazy Taxi the thing you really wanna put out?” (02:18)
    • Greg: “Corporations are dumb. And shareholders, you know... Sega doesn’t want one digit profits. They want double digit profits.” (03:09)
  • Trend of classic games being “fortnited” (turned into service games) called out, with both hosts skeptical about its organic fit for properties like Crazy Taxi.

• Arcade-Style Games in the Modern Industry

  • The difficulty Sega faces in justifying an arcade-style game in a AAA-focused industry.
  • Greg proposes a small-scale $4.99 digital-only version as the “sensible” approach, lamenting that big corporations rarely go for such modest returns.

• Nostalgia and Soundtracks

  • Chat prompts a discussion about the importance of licensed soundtracks (Offspring in Crazy Taxi), comparing the past and present about music in games.
    • “Music is in such a different place... back in the day, I didn’t have Spotify, so if I wanted to listen I played Tony Hawk for those songs.” (11:35 - Blessing)

2. Meta Shuts Down Major VR Studios—Is VR Officially Dead?

14:53 – 24:22

• Significant Layoffs at Meta (Formerly Oculus) Studios

  • Meta is shuttering Twisted Pixel and Sanzaru Games, among others, following large layoffs in its Reality Labs division.
  • Emotional responses as Greg has personal connections with developers affected.
    • Greg: “My heart goes out to these guys. This sucks, right? …My head is like: yes, VR’s dead.” (15:14)
  • Discussion of Asgard’s Wrath 2: critically acclaimed 10/10 game, but even that wasn’t enough to save its studio.
    • Blessing: “Deadpool was nominated at the Game Awards... and a month later, ah, this studio is closed down.” (17:03)
  • The downfall is pegged to corporate expectations for astronomical profits, not just modest success: the “gold rush” mentality.

• Shifting Hope to Wearables & AI

  • Meta’s pivot is now toward AI and wearable technology like smart glasses—something both hosts find more interesting than VR gaming’s prospects.
    • Greg: “Fuck the metaverse... ooh, smart glasses and wristband. That’s exciting to me.” (19:23)
  • VR’s fundamental challenge: never delivering meaningful, sustainable growth or mainstream adoption.

• The Future of VR Tech

  • Apple Vision Pro is cited as an example moving away from game-focused VR to general utility, with the hope that form factor, comfort, and utility will eventually open new doors for games.

3. Will Handheld & Mini-PCs Like Steam Machine Matter?

26:01 – 28:31

• Steam Machine’s Place Next to Steam Deck
  • Valve’s “Steam Machine Verified” status will be easier to achieve than “Steam Deck Verified,” but both hosts question if it will matter unless the hardware has significant, widespread adoption.
    • Greg: “For those less powerful machines... if I see this badge, I’m going to be like, okay, this means it can run.” (26:12)
    • Blessing: “I’m not sold that this is going to be as successful as I thought... they might have to sell this thing for way more than they actually want.” (27:32)
  • The sustainability of new “console-like” PC hardware in the face of rising component costs is questioned.

4. Ninja Theory’s Future & The Evolution of Hellblade

31:34 – 37:29

• Hellblade 3 in Early Development, Project Mara Shelved
  • Ninja Theory refocusing on a new Hellblade game “with more gameplay” after Project Mara is put on hold.
  • Hosts are wary: original Hellblade was special, the sequel stagnated, so skepticism is high about a third outing.
    • Blessing: “I just don’t know if you have as much more to say in this world. I’d be down for a new IP.” (37:12)
    • Greg: “Yeah, that was a downside to Hellblade 2 for me… I want to do things in the game, right?” (35:49)
  • General agreement: Ninja Theory is technically brilliant but needs a creative pivot.

5. Industry Reputation and Publisher Critique: EA’s Surprising Defender

39:14 – 45:00

• Joseph Fares (Hazelight) Defends EA

  • Director Joseph Fares argues that EA is no worse than other publishers and that its “evil” reputation is exaggerated.
    • Fares Quote: “Sometimes I feel that EA is getting more shit than they deserve... I'm very open about it. If it was bad, I would have said that... we have a great relationship.” (from 39:14)
    • Hosts admit that the current focus should include all big corporations, as predatory monetization is now industry-standard, and EA’s notoriety comes from being first, not unique.
    • Blessing: “Think about how much we love Valve… Nothing is more egregious than the gambling that goes on at Counter Strike.” (41:44)

• Caveat: The Saudi Arabia Acquisition

  • The hosts reflect on the recent PIF (Saudi Arabia Public Investment Fund) investment/acquisition, acknowledging the real ethical and practical concerns it raises for EA employees, but distinguish that from everyday developers.

6. The Cautious Adoption of AI in Game Development

46:25 – 55:43

• Stellar Blade Dev Says Small Studios Need AI to Compete
  • Shift Up's CEO claims that without AI, smaller nations can’t compete with the vast manpower (1000–2000 people) behind Chinese and US game projects.
    • Kim Quote: “Using AI will not result in job losses… it will make employees more valuable as one person can perform the work of 100 people.” (reported at 46:25)
  • Greg and Blessing express concern: Maybe don’t make massive projects if you can’t staff them? Celebrate small teams’ personality and vision.
  • Blessing connects this to the blurry, sometimes “generative” feel of Stellar Blade itself.
  • Broad and nuanced discussion: Do we need ethical, fully ‘locally-trained’ AI for production? Could it be ok if it empowers, not replaces, artists? No clear answers—just caution and hope for community-led “vote with your wallet” approaches.

7. News Rapid-Fire: Layoffs, Animation, and More

55:43 – 60:44

• Short updates on Ubisoft layoffs, Resident Evil showcase, Arc Raiders sales and patch, One Punch Man World shutting down, and Major Nelson (ex-Xbox) being laid off from Unity after 18 months—a further sign of industry instability.

Notable Quotes & Memorable Moments

• “VR never got the traction people wanted it to get... It was a gold rush. It was NFTs, it was AI, it was this thing… Where at the time we were a maturing market, now we are mature. It’s gonna expand, bring in new people—it’s money, money, money. And that’s why you saw people like Meta go all in and gamble on it.” (Greg, 17:14–18:33)
• “If my grandma had wheels, would she be a bicycle?...We don’t live in that reality.” (Greg on if VR would have caught on if it was more affordable, 65:44)
• “Music is in such a different place — back in the day, I didn’t have Spotify so if I wanted to listen I played Tony Hawk for those songs.” (Blessing, 11:35)
• “Shout out to Sega for sending me this sweatshirt, which started this entire tangent about Jet Set Radio and Crazy Taxi.” (Blessing, ~00:35)
• “Maybe they have a good head on their shoulders. Maybe they set their expectations correctly. We just don’t see big businesses do that often.” (Greg, 08:15)
• “Sometimes I feel EA is getting more shit than they deserve. Nintendo, Microsoft, Sony, everybody’s done something... For us, it’s a super good collaboration.” (Joseph Fares, via quote, 39:14)

Timestamps for Important Segments

• Sega/Classic games conversation: 00:35 – 09:45
• Meta VR studio closures / VR industry analysis: 14:53 – 24:22
• Steam Machine and hardware trends: 26:01 – 28:31
• Ninja Theory’s future / Hellblade 3: 31:34 – 37:29
• EA’s reputation defended: 39:14 – 45:00
• AI and the future of game dev: 46:25 – 55:43
• Rapid-fire news roundup: 55:43 – 60:44

Final Thoughts

This episode of Kinda Funny Games Daily is a frank assessment of the industry’s shifting priorities, calling out both the creative and economic pressures bearing down on developers, and the players’ wishful thinking for the revival of classic series. The hosts bring both personal experience and community perspective, keeping things energetic, skeptical, and humorous throughout.

For listeners:

• If you want real talk about why VR’s glory days may never come, and what’s next for the people and companies left in the aftermath, this is a must-listen.
• Expect honest industry critique, dashes of nostalgia, and a healthy dose of Kinda Funny’s self-aware, conversational charm.

Topics like AI ethics, studio closures, and wearables are likely to remain hot in future episodes, so stay tuned for ongoing coverage and debate.