First Contact Entertainment, the developer behind Firewall Ultra, has officially closed its doors after an eight-year run. The studio attributes its closure primarily to the industry's overall lack of support for virtual reality (VR) in video games.

In a pre-Christmas Facebook announcement, First Contact Entertainment communicated its decision to cease operations by the end of 2023. The studio expressed that the insufficient backing for VR within the industry became an insurmountable challenge. As a AAA VR game developer, they found it increasingly challenging to justify the necessary expenses to sustain their endeavors. Despite being a team of audacious innovators eager to explore the limits of new technologies, the financial constraints proved overwhelming.

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First Contact Entertainment was responsible for developing Firewall Zero Hour for PlayStation VR in 2018 and Firewall Ultra for PlayStation VR2 in 2023. The fate of these games, whether they will be removed from the PlayStation Store or if their servers will be shuttered, remains undisclosed.
The studio's closure due to financial reasons in 2023 aligns with a broader trend, as another developer, Mimimi, the creator of Shadow Gambit: The Cursed Crew, also shut down after 15 years, citing increased financial pressure and risk.