Meta closes three VR studios as part of the downsizing of metaverse projects

Meta has officially closed its three internal VR studios — Armature, Sanzaru, and Twisted Pixel as part of further downsizing investments in the metaverse. Additionally, the fitness app Supernatural will no longer receive new content.

What is known

Twisted Pixel, which released the game Marvel's Deadpool VR in November, and Sanzaru, known for Asgard's Wrath, confirmed the layoffs on social media. According to Bloomberg, Armature, which adapted Resident Evil 4 for the Meta Quest headset in 2021, has also ceased to exist. Another high-profile project, Supernatural, will no longer be updated, although it will remain available to existing users.

In a statement on Facebook, the developers wrote that due to recent organizational changes, Supernatural will no longer receive new content or functional updates.

Meta confirmed the cuts. A company representative said that Meta is redirecting some investments from the metaverse to the wearable device segment and plans to spend the saved resources on developing this direction in 2026.

The company last released the Quest 3S VR headset back in 2024. And in December 2025, it halted plans to release headsets based on Horizon OS from Asus and Lenovo. Now Meta is also ceasing game development within the company.

Despite this, the company states that the gaming direction will remain part of the strategy. Oculus Studios head Tamara Sciammanna noted in an internal letter that the company is not abandoning video games but is shifting its investment focus to collaborating with third-party developers.

Source: Bloomberg