Meta is laying off approximately 10 percent of its Reality Labs metaverse division, with significant cuts affecting several of its virtual reality (VR) gaming studios. According to reports from The Verge AI, the closures include the shuttering of Twisted Pixel Games, Sanzaru Games, and Armature Studio, with the latter two being notable for their work on popular VR titles such as "Asgard's Wrath" and the "Resident Evil 4" VR port, respectively.
This restructuring comes as Meta continues to reassess its investments in the metaverse, a digital space where users can interact virtually. The move signals a shift in priorities within the tech giant, reflecting challenges in scaling up VR technologies and maintaining profitability in this nascent market. The closures are particularly impactful for developers who have dedicated years to creating immersive VR experiences.
According to an internal memo viewed by Bloomberg, the decision to close these studios was part of broader cost-cutting measures within Reality Labs. Developers from Twisted Pixel and Sanzaru have taken to social media to share their disappointment. Andy Gentile, a former level designer at Twisted Pixel, lamented, "It appears the entire Twisted Pixel Games studio has been shut down along with Sanzaru and Armature too." Similarly, Dan Greenfield, a former senior artist at Twisted Pixel, stated, "Unfortunately, Twisted Pixel Games has been closed as a result of strategy changes at Meta."
The impact extends beyond just these studios. Meta also announced that the team behind the VR fitness app Supernatural will no longer develop new content or features, though the existing product will still receive support. This decision reflects a strategic pivot towards more sustainable and profitable ventures within the VR space.
The closures are part of a larger trend of Meta divesting from certain VR projects. In recent years, the company has acquired several VR studios, including Within (developer of Supernatural) in 2023, Twisted Pixel and Armature in 2022, and Sanzaru in 2020. Despite these acquisitions, Meta has faced difficulties in achieving widespread adoption and commercial success for its VR offerings. The closure of Echo VR developer Ready at Dawn in 2024 further underscores the challenges Meta faces in this arena.
Tracy Clayton, a spokesperson for Meta, confirmed the accuracy of Bloomberg's reporting. She stated, "We said last month that we were shifting some of our investment focus to areas where we see the most potential for growth and impact."
The layoffs and studio closures signal a recalibration of Meta's approach to the metaverse. While the company remains committed to the long-term vision of virtual spaces, it is evident that there will be ongoing adjustments as it navigates the complexities of this emerging field. For now, the future of VR gaming within Meta hangs in the balance as the company continues to refine its strategy.
According to The Verge AI, the closures highlight the evolving landscape of the metaverse and the challenges companies face in realizing their visions. As Meta restructures, the industry watches closely to see how this reshaping will affect the future of virtual reality.