At Gamescom 2012, Media Molecule announced that they were working on two different projects, with one being "Tearaway". "Dreams" was revealed at PlayStation Meeting 2013, with Evans showing a technical demo onstage, involving three people creating an in-game band. A teaser for the game was released in July 2014. The game was officially announced at Sony Interactive Entertainment's press conference at E3 2015. A beta for the game was originally set to be released in 2016, however, it was delayed to 2017 and then to 2018. The game was made available via early access on 16 April 2019, a first for a Sony game, before being officially released on 14 February 2020. An update that added support for PlayStation VR was announced on 30 June 2020 and was released on 22 July 2020. Online multiplayer is set to be released for the game sometime post-launch.