Meta Ends VR Studio Era: Metaverse Cuts Hit Deadpool, Asgard’s Wrath Developers
10% layoffs in Reality Labs shutter studios behind Marvel’s VR hits and Resident Evil 4 VR.
Meta Shuttering Key VR Development Studios
Meta has confirmed layoffs across its Reality Labs division, affecting studios responsible for major VR titles like Marvel’s Deadpool VR, Asgard’s Wrath, and Resident Evil 4 VR. According to insider reports, developers from Twisted Pixel Games, Sanzaru Games, and Armature Studio have confirmed their studios are being closed. The cuts align with Meta’s strategy to pivot investments from the metaverse to wearable hardware.
Strategic Shift to Wearables
“We’re shifting investment from the metaverse to wearables,” stated Meta spokesperson Tracy Clayton. The company acquired the shuttered studios in 2020–2022 but closed Ready at Dawn (developer of Echo VR) in 2024. The layoffs—targeting 10% of Reality Labs—reflect a broader industry trend of refocusing resources on emerging hardware markets.
Developer Reactions Emerge
Former Twisted Pixel level designer Andy Gentile and other laid-off staff confirmed the closures via social media. While Meta has not commented directly on specific studio shutdowns, the move underscores the volatility of metaverse-driven investments as consumer adoption lags expectations.
