TITLE: Meta Closes Twisted Pixel, Sanzaru Games, And Armature Studio
Meta’s massive restructuring of its virtual reality division, Reality Labs, has led to the definitive closure of three high-profile internal game studios: Twisted Pixel, Sanzaru Games, and Armature Studio. These shutdowns are a component of wider job cuts that are reportedly impacting over 1,000 employees across Reality Labs—a division overseeing the Meta Quest ecosystem—representing about 10% of its workforce. Employees began confirming the closures on social media this week.
The layoffs reflect a major strategic pivot for Meta. The company is reportedly shifting investment away from its long-term metaverse vision and internal VR content creation, instead choosing to focus resources on AI wearables and enhanced phone features, a move confirmed by a company spokesperson.
The three studios, all acquired by Meta within the last five years, held strong pedigrees. Sanzaru Games (acquired in 2020) was responsible for the critically-acclaimed *Asgard’s Wrath 2* on Quest, following previous work on the *Sly Cooper* franchise. Twisted Pixel, known for Xbox Live Arcade hits like *‘Splosion Man*, recently delivered *Marvel’s Deadpool VR*. Armature Studio, which joined Meta in 2022, was crucial in developing the highly successful *Resident Evil 4 VR*.
While this move raises questions about the future of Meta’s in-house VR development, the company insists it remains committed to gaming. Moving forward, Meta plans to ensure “long-term sustainability” by refocusing its investment strategy almost entirely on supporting third-party developers and external partners.