The landscape of virtual reality development just experienced a major tremor, as Meta has confirmed the closure of three cornerstone internal Oculus Studios teams. The affected developers are Twisted Pixel Games, Sanzaru Games, and Armature Studio—entities responsible for producing some of the most highly regarded exclusive content available on the Meta Quest platform.
This action sees Meta shedding the talent behind massive VR hits like the ambitious RPG *Asgard’s Wrath 2* (Sanzaru Games) and the groundbreaking, beloved conversion of *Resident Evil 4 VR* (Armature Studio). Reports confirm that the cuts were absolute, impacting the entire staff across all three development houses. News of the layoffs began circulating after developers from the respective studios posted confirmations of their job losses across various social media platforms earlier this week.
This systematic shuttering is understood to be part of ongoing strategic reductions within Meta’s Reality Labs business, the division dedicated to shaping the future of VR and AR. Speaking to Polygon, Meta spokesperson Tracy Clayton confirmed the closures, explaining that the company is undergoing a strategic recalibration. Moving forward, Meta plans to divert resources away from high-budget, first-party VR gaming and instead place a heavy focus on its Wearables category, citing products such as the popular Ray-Ban Meta AI smart glasses as the new priority. It’s a significant shift that signals a refocusing of Meta’s ambitious hardware strategy.