Meta has initiated a dramatic overhaul of its internal VR development apparatus, confirming the immediate closure of three established studios: Sanzaru Games, Twisted Pixel, and Armature Studio. These shutdowns are part of a wider series of massive job cuts—reportedly affecting over 1,000 roles, or about 10 percent of the workforce—within the company’s crucial virtual reality branch, Reality Labs.
This widespread restructuring signals a major strategic pivot for the tech giant. Meta is actively scaling back deep investment in the Metaverse and first-party VR content, instead shifting substantial resources toward the development of AI wearables and advanced mobile features. A company spokesperson confirmed that the financial savings generated by these recent layoffs and studio closures will be funneled directly into bolstering these growing wearable technology initiatives.
The closures mark the end for several key contributors to the Meta Quest ecosystem. Sanzaru Games, acquired in 2020, was behind the critical hit *Asgard’s Wrath 2*. Armature Studio, which joined Meta in late 2022, was lauded for its port of *Resident Evil 4 VR*. Twisted Pixel, also acquired in 2022, developed titles like *Marvel’s Deadpool VR*. Despite shuttering these internal teams, Meta management emphasizes that their commitment to VR gaming remains, though future content strategy will rely heavily on supporting existing third-party developers and external partnerships.