Meta Shuts Down The Studios Behind Deadpool VR, Asgard’s Wrath 2, and Resident Evil 4 VR

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Meta has closed down three development teams within Oculus Studios. These teams – Twisted Pixel Games, Sanzaru Games, and Armature Studio – are no longer operating as part of Meta.

I was really bummed to see the news that Meta was making cuts to its Reality Labs division – that’s the team behind their VR games. It seems like those cuts actually happened quickly, because just yesterday, developers from several of those studios – like the ones working on those games – started posting on X and other social media that they’d been laid off. It’s a tough situation, and I’m sad to see talented people losing their jobs.

Recent layoffs at Meta affected all of Twisted Pixel Games, Sanzaru Games, and Armature Studios, according to UploadVR. Meta spokesperson Tracy Clayton told Polygon the cuts were made to allow the company to prioritize its work on wearable technology, such as the Ray-Ban Meta AI glasses.

This is a major setback that significantly limits Meta’s ability to create high-quality, original games for its Quest headsets. The three studios that closed today were all well-respected and had long, successful histories before being acquired by Meta.

Twisted Pixel Games first became well-known for popular Xbox Live Arcade games such as ‘Splosion Man and Comic Jumper: The Adventures of Captain Smiley. For the last ten years, they’ve been developing virtual reality games, most recently releasing Marvel’s Deadpool VR in November 2025.

Sanzaru Games created Asgard’s Wrath 2, a free game included with the Meta Quest 3. Before that, they developed the first Asgard’s Wrath for virtual reality, as well as several 3D platformer games for Sony, including Secret Agent Clank and Sly Cooper: Thieves in Time.

Armature Studio was created by developers who previously worked at Retro Studios. They’re famous for making ReCore, a game that was only available on Xbox One. More recently, in 2021, they released a well-received virtual reality version of Resident Evil 4.

Even though Meta has shut down some VR studios, Beat Games (the makers of Beat Saber) and Camouflaj (Batman: Arkham Shadow) are still working, meaning Meta hasn’t completely abandoned making its own VR games. However, this is still a significant setback for VR gaming, as Meta is a leading force in the industry.

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2026-01-14 02:39