LETTER FROM THE CHAIRMAN

As we wrap up 2025, I want to take a moment to reflect on the year and what it’s meant for all of us.

2025 became the Year of Playability for Star Citizen. It was a year when more people played than ever before and spent more time in the ’verse than at any point in our history. That momentum did not happen by chance. It came from a focused effort to improve quality of life, performance, and reliability, and to make the gameplay experience more engaging and rewarding to return to.

We started the year with two clear goals as a company: to improve stability and quality of life in Star Citizen while continuing to deliver regular content updates, and to push Squadron 42 toward Beta and release in 2026.

I’m happy to say we’ve made great progress on both fronts.

STAR CITIZEN

On the Star Citizen side, 2025 saw a number of important pieces come together. We released not one, but two star systems in a single year, welcomed the return of the beloved landing zone Levski, and added new locations around the ’verse, opening more space to explore and spend time in.

Server Meshing was the key technology that made all this possible – with the release of 4.0.1 to the Live Environment on January 28th we moved into a bigger, more performant and stable universe. And while there were a few hiccups with some legacy systems like the Elevators and Air Traffic Control that were built long before Server Meshing was conceived, Server Meshing itself has been working flawlessly since the beginning, a testament to the design and execution of the system by our Network, Backend, Engine and Gameplay teams.

Every day it handles tens of thousands of people playing concurrently in shared instances of up to seven hundred players. For something that simulates everything to the level of detail we do, at the scale we do, in first and third-person, this is a truly mindboggling achievement. Most other multiplayer games top out at between fifty to hundred players in a much more contained space than we allow you to explore in Star Citizen. And the MMOs with high player counts in the same instance don’t simulate and render the world to the extent we do.

As multiple servers now manage our vast universe, the individual server performance has greatly increased, creating a much better experience for all of you. And due to its design with a separate service that tracks the state of the universe for all servers and clients, it allows us to quickly recover from a client or a server crash, without losing your progress, which is a huge quality of life win.

We also shipped more mission content and in-game events than ever before this year. That included large-scale moments like teaming up to take on an Irradiated Apex Valakkar or coming face-to-face with Yormandi, as well as longer-running storylines that helped add depth and context to the ’verse.

The environments continued to evolve as well. Expanded weather effects and planetary conditions helped make locations feel more distinct and atmospheric, while improvements to characters, player interaction, and AI contributed to a more intuitive experience. We also expanded the vehicle lineup, introducing 24 new vehicles while continuing to improve the ships and ground vehicles already in your hands.

Supporting all of this was a significantly increased pace of delivery compared to previous years. In 2025, Star Citizen delivered 11 major patches, more than 40 live publishes, 147 PTU builds, and several tech previews. This new pace allowed us to iterate faster, respond to feedback sooner, and deliver more content to play throughout the year.

We closed out the year with the introduction of Engineering in Star Citizen Alpha 4.5, adding new layers of interaction, decision-making, and responsibility to managing your ship. Engineering is an important step toward the deeper systemic experience I've always wanted to build, where coordination and your crew truly matter. While future systems such as Maelstrom’s physically based materials and destruction, more realistic shield gameplay with generators and emitters, and our upcoming crafting system will further deepen Engineering, it was important to bring Engineering into the ‘verse now so we can begin refining the experience in the Live environment.

Finally, as a “Christmas Surprise” we quietly released an experimental VR mode in Alpha 4.5. What began as a passion project quickly caught people’s attention, and the response from those who have tried it has been genuinely exciting.

I’ve long believed that Star Citizen is a natural fit for VR because of how we build our worlds. We physicalize almost everything, keeping first and third-person views consistent in a shared universe. That approach takes more effort, but it makes the experience feel grounded and real, and it highlights the value of those design choices in a way few other technologies can.

Being able to experience ships, environments, and equipment at true scale, with natural movement and directional audio, adds a level of immersion that’s difficult to capture on a traditional display. All the detail we put into our environments, props, ships, and gear really pays off when you’re up close and personal.

This is still an early and experimental step, and there’s plenty we want to improve. We need to continue dialing in the diegetic UI so it feels comfortable and readable in VR, refine FPS controls so your input controls your body rather than where you’re looking, and add more dedicated control support. These are solvable problems, and ones we are excited to tackle.

It’s also worth mentioning that the new VR mode would not be possible without the engine and graphics work happening behind the scenes. Ongoing optimization efforts by our Core Technology Group and our transition to Vulkan have made a meaningful difference, and without that work, I don’t think VR would be running as smoothly in its first iteration.

All of this, combined with a hard focus on bug fixing and quality of life features has made Star Citizen more fun, stable and playable than ever.

And the numbers back it up!

We had record-setting engagement this year, with more than 64 million hours played in Star Citizen (up from 48 million in 2024). You set new records in peak concurrency and unique daily users, and we saw huge increases in every metric, including 40-60% increases in average daily users and average peak concurrency. We also saw huge improvements in server stability with 57% fewer player disconnections per 1 million player hours compared to 2024.

2025 truly was the Year of Playability for Star Citizen!

SQUADRON 42

On the Squadron 42 front, our focus throughout 2025 was to build on the progress of 2024 and what we showed at last year’s CitizenCon by bringing the game to content complete and closing out remaining core tasks in preparation for Beta.

All chapters are now fully playable from beginning to end, and we’ve been playing through the game ourselves regularly. Squadron 42 is a large game, over forty hours in length, and it’s becoming increasingly clear how special it will be once the remaining polish, optimization, and bug fixing is complete.

A big part of what makes this possible is the technology we’ve built at CIG over many years. The ability to move seamlessly from on foot, into a vehicle you can fly and move around inside, down to a planet or across star systems, all without loading screens, creates a level of immersion that’s very difficult to replicate. That combination of close-up interaction and galactic scale is at the core of what will make Squadron 42 so unique.

Equally important is the quality of the content itself. From writing and performance capture to characters, environments, ships, lighting, sound, cinematics, and design, the level of care across the entire game is something I’m incredibly proud of. Combined with deeply interactive systems, it creates an experience that pulls you into the world and keeps you there.

COMMUNITY

What continues to mean the most to us is the community that has grown alongside this journey. You have given us your time, shared your perspectives, and chosen to take part in something that is truly bigger than all of us. It is the next great adventure, where millions of like-minded explorers get to live among the stars, and we could not ask for a better crew.

Throughout the year, hundreds of Bar Citizen events took place around the world, creating spaces where stories were shared, friendships were formed, and a shared passion for this universe came to life. We were fortunate enough to attend 24 of these in person, and each one was a reminder of the care and creativity you bring to this community. These moments matter. They help keep us grounded in why we do what we do, and they continue to inspire and motivate us in ways that are truly rewarding.

That same energy carried through online. You organized racing events, watch parties, social meetups, and more throughout the year, bringing people together no matter the time zones or continents. CitizenCon Direct was a standout moment for us, with dozens of watch parties happening around the world simultaneously. Despite the distance between us, it genuinely felt like we were more connected than ever.

Thank you for the time, patience, and passion you continue to share with us. Whether you joined us at an event, helped test a build on the PTU, organized a gathering, or simply spent time experiencing the universe with others, you are at the center of our ambition and what makes this entire journey possible.

EYE ON THE HORIZON

Looking ahead to 2026, our focus remains clear. We’ll continue improving stability and depth in Star Citizen while expanding and connecting core systems that shape how you play, from Engineering to Inventory, Crafting, Social Tools, and other foundational features, alongside expanding the playable universe itself.

Server Meshing will become dynamic, allowing the mesh to reconfigure in real-time based on player activity and server load. This evolution is foundational to supporting the large-scale group experiences we've always envisioned and will enable us to expand the universe even further. Our goal is to have thousands of players in the same shared universe instance. Components of the Server Meshing systems are also being leveraged to deliver instanced areas and experiences, allowing our designers to craft balanced content that integrate seamlessly into the universe.

As we expand outward, we're also building deeper. Genesis planets represent our next step in planetary tech, offering breathtaking worlds with significantly improved graphical fidelity and denser, more dynamically assembled biomes. These planets are driven by the rules of nature—and our designers—creating ecosystems that feel alive and authentic. Combined with Starchitect locations throughout, Genesis planets deliver both the environmental depth and the gameplay density we need. Supporting this will be a new AI population management system that creates inhabitants appropriate to their local environment and enables more complex interactions between agents. This approach to building living, breathing planets, is key to scaling the game to the heights we're aiming for.

We're also upgrading core systems that have been with us for years. As part of our Item Recovery work, Inventory, Insurance, and Cross-Patch Persistence are all getting significant improvements. The focus is on making it easier to interact with your belongings while improving the stability and speed of these systems overall. These are integral parts of any MMO experience and getting them right matters.

For Squadron 42, our priority remains quality and polish as we move toward Beta and release. We’re confident in the direction the game is headed and are fully focused on delivering. We know many of you are eager to play, and we’re looking forward to putting it in your hands. We don’t plan on a long, drawn-out marketing campaign as we’ve already done our share of trailers and gameplay previews. When it’s time, you (and the rest of the gaming world) will hear a lot more from us.

Thank you for continuing to share your time, your feedback, and your passion for this universe. Star Citizen and Squadron 42 exist because of all of you, and that is something I will never take for granted.

From all of us at Cloud Imperium Games, we wish you a happy holiday season and a great start to the new year.