Meta has fully shut down three of its digital actuality recreation studios, shedding many builders within the course of, as the corporate pivots to AI and wearable tech.
On January 13, a number of builders from Twisted Pixel and Sanzaru Video games posted on-line that that they had been laid off from the studios. A Meta spokesperson confirmed the layoffs and Bloomberg’s reporting, confirming that three studios had been closed: Sanzaru (Asgard’s Wrath 2), Twisted Pixel (Deadpool VR), and Armature (Resident Evil 4’s VR port). The corporate additionally supplied this assertion to Kotaku through e-mail:
“We said last month that we were shifting some of our 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.”
On-line, affected employees posted concerning the layoffs, offering the primary public affirmation that the studios concerned had been being fully shut down.
“Welp. As many will hear soon, several Meta game studios were closed today, including Sanzaru. It was an amazing team of powerhouse talent, and I’m really glad to have gotten to know everyone there,” posted senior-level designer Ray West on LinkedIn on Tuesday.
“I’ve just been laid off. It appears the entire Twisted Pixel games studio has been shut down. Sanzaru Games, too,” posted another developer on Twitter.
“Unfortunately, I was part of the layoffs today at Meta, and will be seeking a new role,” said Twisted Pixel VR gameplay designer Kathryn Yu on Bluesky.
This follows reporting on Monday that Meta was trying to pivot away from VR and the metaverse to AI and augmented actuality tech after that part of the company lost $4 billion. Meta is reportedly trying to reduce 10 to fifteen p.c of Actuality Labs, its VR sector, which incorporates 15,000 workers in addition to quite a few recreation studios like Sanzaru. These groups had been creating unique Meta Quest video games, like last year’s Deadpool VR, which was developed by Twisted Pixel.
Sanzaru was acquired by Meta in 2020 following the discharge of Asgard’s Wrath, a well-liked and critically acclaimed RPG, in 2019. It developed a sequel that launched as a free pack-in recreation with the launch of the Quest 3 in December 2023. Twisted Pixel beforehand labored on video games like Splosion Man and Lococycle earlier than being purchased by Meta in 2021 to work on VR titles. Armature was a port studio that labored on video games like Borderlands, Fortnite, and Bayonetta. The studio developed Batman: Arkham Origins Blackgate for the PS Vita, as properly. It was bought by Meta in October 2022. Its last shipped project was the excellent VR port of Resident Evil 4.
Replace: 1/13/26, 2:20 p.m. ET: The article has been up to date to incorporate a remark from Meta confirming the shutdowns and layoffs. The headline was up to date to replicate this affirmation as properly.
