Meta pivots from metaverse, closes VR studios

Meta is cutting roughly 10 percent of its Reality Labs metaverse division, and the company is closing several internal VR game studios as part of the reductions. An internal memo reviewed by Bloomberg — which Meta confirmed to The Verge — says Twisted Pixel Games (maker of Marvel’s Deadpool VR), Sanzaru Games (known for Asgard’s Wrath), and Armature Studio (which worked on the Resident Evil 4 VR port) are being shut down. The team behind the VR fitness app Supernatural will stop developing new content and features, though the existing app will continue to be supported.

Former studio employees have posted about layoffs and closures on LinkedIn and other social posts cited in reporting. Meta previously acquired the Supernatural developer Within in 2023 (after an FTC dispute), Twisted Pixel and Armature in 2022, and Sanzaru in 2020; the company had already closed Ready at Dawn (Echo VR) in 2024. In a broader statement about Reality Labs reductions, Meta spokesperson Tracy Clayton said the company is shifting some investment from the metaverse toward wearables and plans to reinvest savings to support wearables growth this year.

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