Meta closes three VR studios following 10% cut to Reality Labs metaverse division

Meta has shuttered three VR studios following a 10% cut to its Reality Labs metaverse arm.

As Bloomberg reports, an internal memo announced the closures of Twisted Pixel Games (Marvel’s Deadpool VR), Sanzaru Games (Asgard’s Wrath), and Armature Studio (Resident Evil VR port).

Within, the developer of VR fitness app Supernatural, will not produce new features or content for the app as part of the closures. Support for the “existing product” will continue.

Meta spokesperson Tracy Clayton confirmed to The Verge that the content seen by Bloomberg was accurate.

Former employees have posted about the closure of the studios on social media, including former Twisted Pixel level designer Andy Gentile and former Sanzaru senior level designer Ray West.

Meta acquired Sanzaru in 2020, Twisted Pixel and Armature in 2022, and Within in 2023. The latter acquisition was initially objected to by the Federal Trade Commission.

In response to the overall layoffs at Reality Labs, which could affect up to 1,000 employees, Meta referred to its announcement last month that it would be “shifting some of [its] investment from Metaverse toward wearables.”

“This is part of that effort, and we plan to reinvest the savings to support the growth of wearables this year.”