Meta has initiated a major restructuring within its virtual reality division, Reality Labs, resulting in the abrupt closure of three internal gaming studios: Sanzaru Games, Twisted Pixel, and Armature Studio. These highly-regarded developers, acquired by Meta over the last five years to bolster its VR content library, are being shuttered as part of a significant round of layoffs impacting the division.
Reports indicate that Meta is cutting over 1,000 jobs across Reality Labs, which oversees the production of Meta Quest headsets and associated software. The cuts, affecting about 10 percent of the division’s workforce, are a direct result of Meta strategically shifting investment focus away from the metaverse and dedicated VR projects toward emerging areas like AI, wearables, and phone features.
The closures mark the end of celebrated teams known for both legacy and recent VR hits. Sanzaru Games was responsible for the critically acclaimed *Asgard’s Wrath 2* for Quest headsets, while Armature Studio brought the highly popular *Resident Evil 4 VR* to the platform. Twisted Pixel, famous for Xbox 360 classics like *‘Splosion Man*, recently delivered *Marvel’s Deadpool VR*. While the fate of internal studios appears grim, Meta confirmed that the savings generated by these cuts will be reinvested to support external developers and third-party partners, ensuring the long-term sustainability of content on the Quest platform.