Table of Contents
- 1. TL;DR: Meta shuts down three VR studios amid Reality Labs cuts
- 2. Meta’s closure of VR studios
- 3. Details of the closed studios
- 4. Impact of layoffs at Reality Labs
- 5. Confirmations about the closure of the studios
- 6. Meta’s acquisitions of the studios
- 7. Refocusing Meta’s strategy
TL;DR: Meta shuts down three VR studios amid Reality Labs cuts
- Meta has shut down three virtual reality studios: Twisted Pixel Games, Sanzaru Games, and Armature Studio.
- The company is refocusing its strategy toward artificial intelligence and wearable devices.
- These closures are expected to significantly affect the developer community and the virtual reality industry.
- The layoffs represent approximately 10% of Reality Labs’ workforce.
- The decision reflects a shift in Meta’s priorities, moving away from the metaverse and virtual reality.
Meta’s closure of VR studios
Meta has made the decision to close three of its virtual reality studios as part of a broader restructuring within its Reality Labs division. This move comes in a context of significant cuts, as the company is looking to reduce costs and redirect its investments toward areas it considers more promising, such as artificial intelligence and wearable devices.
The decision to close these studios has not been easy, but it has been justified by the need to optimize resources and adapt to a constantly changing market. The affected studios are Twisted Pixel Games, known for its work on titles such as Marvel’s Deadpool VR; Sanzaru Games, famous for the Asgard’s Wrath franchise; and Armature Studio, which worked on the adaptation of Resident Evil 4 VR. Each of these studios has made significant contributions to the virtual reality ecosystem, and their closure marks a drastic shift in Meta’s strategy.
Details of the closed studios
Twisted Pixel Games
Twisted Pixel Games, founded in 2006, has been a pillar in the development of virtual reality games. Its most notable title, Marvel’s Deadpool VR, was well received by critics and players. However, despite its success, the company could not sustain itself in Meta’s changing environment, which now prioritizes other areas of development.
Sanzaru Games
Sanzaru Games, known for its work on the Asgard’s Wrath series, has been a benchmark in creating immersive virtual reality experiences. The company was acquired by Meta in 2020, and its closure represents a significant loss for the development of exclusive content on Meta’s platform.
Armature Studio
Armature Studio, which stood out for its work on the adaptation of Resident Evil 4 VR, has also been an integral part of the growth of virtual reality. Its closure reflects the difficulty of mainta
to have development studios in an environment where the company’s priorities have changed drastically.
Impact of layoffs at Reality Labs
The workforce reduction at Reality Labs, which includes the closure of these three studios, represents a considerable blow to the division. It is estimated that approximately 10% of Reality Labs’ workforce will be laid off, which could affect the morale of the remaining employees and the public perception of the company.
These layoffs not only impact the employees directly affected, but they may also have repercussions in the virtual reality developer community. The loss of talent and experience at these studios could slow the development of new technologies and experiences in the virtual reality space.
Confirmations about the closure of the studios
Developers’ statements
Developers from the closed studios have expressed their sadness and frustration at the news. Andy Gentile, a former level designer at Twisted Pixel, shared on social media his dissatisfaction after being laid off. Others, such as Ray West of Sanzaru, also confirmed the closure of their studios, which has led to a wave of support and solidarity within the developer community.
Confirmation from Tracy Clayton
Tracy Clayton, a Meta spokesperson, confirmed the accuracy of the reports about the studio closures. In a statement, Clayton mentioned that the company is “refocusing its approach” and that the cuts are part of a broader strategy to reduce costs and increase investment in areas such as artificial intelligence and wearable devices.
Meta’s acquisitions of the studios
Twisted Pixel and Armature in 2022
Meta acquired Twisted Pixel and Armature in 2022 as part of its expansion in the virtual reality space. Both acquisitions were made in the hope of strengthening its content offering and improving the user experience on its virtual reality platform. However, with the closure of these studios, Meta appears to be reevaluating the viability of its investments in this sector.
Sanzaru in 2020
The acquisition of Sanzaru in 2020 was seen as a strategic move to boost Meta’s exclusive content in the virtual reality space. Despite its initial success, the company could not sustain itself in an environment where Meta’s direction has changed drastically.
Refocusing Meta’s strategy
Meta is in a process of strategic refocusing that prioritizes intelligartificial intelligence and wearable devices over virtual reality and the metaverse. This decision is based on the need to adapt to an evolving market and the financial pressures the company faces.
The company has stated that it plans to reinvest the savings gained from these cuts into the growth of wearable technologies, indicating a significant shift in its long-term focus. This move could have important implications for the virtual reality industry, as Meta has been a key player in this space.
Future of Meta’s virtual reality division
The future of Meta’s virtual reality division is uncertain following the closure of these studios. The company has indicated that it will continue supporting its existing products, such as the VR fitness app Supernatural, but will not develop new content. This could limit innovation and growth in the virtual reality sector, where competition is increasing.
Meta has faced significant losses in its Reality Labs division, which has led the company to reconsider its investments in this area. With the shift toward artificial intelligence and wearable devices, we are likely to see a decrease in investment in virtual reality in the near future.
Reactions from the community and developers
The developer community and players have reacted with sadness and frustration to the closure of these studios. Many have expressed their support for the laid-off employees and have shared their positive experiences with the games developed by Twisted Pixel, Sanzaru, and Armature.
The loss of these studios has also raised concerns about the future of virtual reality and Meta’s ability to remain a leader in this field. The community is watching closely how events unfold and what impact this restructuring will have on the virtual reality ecosystem.
Impact of VR studio closures at Meta and the future of virtual reality
Meta’s restructuring and its focus on artificial intelligence
Meta’s restructuring and its focus on artificial intelligence indicate a significant change in the company’s direction. This move could have long-term implications for the virtual reality industry, as Meta has been a key player in this space. The community is concerned about how these changes will affect innovation and the development of new virtual reality experiences.
Consequences for the virtual reality industry
The closure of these studios could have significant consequences for the virtual reality industry as a whole. The loss of talent and experience in content development could slow growth and innovation in this field. In addition, Meta’s shift toward artificial intelligence and wearable devices could change the competitive dynamics in the market.
Reactions from employees and the tech community
Laid-off employees and the tech community have expressed their dissatisfaction and concern about the future of virtual reality. Many have shared their experiences and offered support to those who have lost their jobs. The community is watching closely to see how events unfold and what impact this restructuring will have on the virtual reality ecosystem.
This article has explored Meta’s closure of three VR studios, its implications for the industry, and the community’s reactions. As the company shifts toward new priorities, the future of virtual reality at Meta and in the broader market remains uncertain.
Martin Weidemann is a specialist in digital transformation, telecommunications, and customer experience, with more than 20 years leading technology projects in fintech, ISPs, and digital services across Latin America and the U.S. He has been a founder and advisor to startups, works actively with internet operators and technology companies, and writes from practical experience, not theory. At Suricata he shares clear analysis, real cases, and field learnings on how to scale operations, improve support, and make better technology decisions.