MIGHTY COCONUT confirmed a SECOND round of 2026 LAYOFFS on the same day it locked Escape from Planet Xylodon for October 8. UploadVR reports founder Lucas Martell told the Walkabout community that TEN staff will leave over the coming months — a cut he ties to a VR market that is no longer funding the studio’s prior SCALE.
Martell’s LinkedIn statement, quoted in full by UploadVR (Mike Johnson, September 28), is blunt about the TRAJECTORY. He writes that funding, hardware, and press attention have been diverted elsewhere, and that without a steady stream of NEW PLAYERS into VR and Walkabout, “the scale at which we’ve been operating is no longer SUSTAINABLE.” The studio already cut about TWENTY-FIVE PERCENT of staff in January and raised paid DLC from $3.99 to $4.99.
What Stays, What Slows
Walkabout is not shutting down. Martell says the game will keep shipping COURSES, though “a little less often” as the team returns to a smaller FOOTPRINT. UploadVR notes the course SCHEDULE was already set through 2027 before this round. Work continues on spinoff Walkabout DUNGEON GOLFER and on helping ship the flatscreen lawn-mowing title GRASS — Martell’s stated path to DIVERSIFY revenue beyond a single VR hit.
Why the Timing Matters
The CONTRAST with yesterday’s Xylodon date lock is the story. One calendar day carries both a firm multi-platform RELEASE and a studio saying the player funnel into VR is too thin to hold prior HEADCOUNT. UploadVR highlights Martell’s line about the missing stream of new players as the standout SIGNAL — not a content drought, but a PIPELINE problem at the platform layer.
Industry Context
Mighty Coconut is putting together a reverse-RECRUITING list for outgoing staff. That detail sits beside a wider pattern UploadVR has tracked for years: mid-tier VR studios trimming even when a flagship title still SHIPS regular paid content. Avatar packs, hole celebrations, and ball trails already expanded Walkabout’s revenue per player — and still were not enough, on Martell’s numbers, to offset the DECLINE.
For players, the near-term calendar still has XYLODON on October 8 across Steam, PlayStation VR2, Quest, Pico, and Samsung Galaxy XR. The longer question is CADENCE: fewer courses from a smaller team, still framed as the only path that keeps servers ACTIVE and the game alive. Sources: UploadVR, Mighty Coconut (January 2026 changes), Steam Walkabout page.