Meta has shuttered three of its major VR game development studios as the company shifts its focus away from metaverse development toward AI-powered wearables and smart glasses. The closures affect Armature Studio, Sanzaru Games, and Twisted Pixel, marking a significant pivot in Meta’s Reality Labs division strategy.
Studios Affected by the Closures
The three shuttered studios were responsible for some of Meta’s most notable VR titles:
- Armature Studio developed the popular Resident Evil 4 port for Quest
- Sanzaru Games created the acclaimed Asgard’s Wrath series
- Twisted Pixel released Marvel’s Deadpool VR, which launched just two months prior in November 2025
The closures represent layoffs affecting roughly 10% of the Reality Labs workforce, equaling approximately 1,000 employees. Additionally, the popular VR fitness app Supernatural will no longer receive content updates, though existing users can continue accessing the current version.
Strategic Shift Away from VR
Meta’s decision reflects a broader reorganization within Reality Labs. The company announced last month it was “shifting some of our investment from Metaverse toward Wearables,” according to a Meta spokesperson. This pivot comes as the company’s Ray-Ban and Oakley smart glasses have seen significantly stronger sales momentum compared to Quest VR headsets in 2025.
“Starting today, VR will operate as a leaner, flatter organization with a more focused road map to maximize long-term sustainability,” wrote Meta Chief Technology Officer Andrew “Boz” Bosworth in an internal memo.
Remaining VR Studios
Meta confirmed that four first-party VR game studios remain operational:
- Beat Games (Beat Saber)
- BigBox (Population: One)
- Camouflaj (Batman: Arkham Shadow)
- Ouro Interactive (Super Rumble, Super Strike)
Long-Term Implications
The closures raise questions about Meta’s long-term commitment to VR gaming, particularly following the company’s decision to pause Horizon OS headsets from Asus and Lenovo last month. However, Meta has stated it remains committed to supporting third-party VR developers and partners.
“These changes do not mean we are moving away from video games,” noted Oculus Studios director Tamara Sciamanna in the internal memo. “With this change we are shifting our investment to focus on our third-party developers and partners to ensure long-term sustainability.”
This marks one of the largest restructurings of Reality Labs since the division was formally established in 2020, as Meta reallocates resources to capitalize on the emerging smart glasses market.