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Meta closes three VR studios following 10% cut to Reality Labs metaverse division

Meta VR studio closures are part of a broader reduction in the company's Reality Labs metaverse division. Three game studios are shutting down, while the Supernatural fitness app will no longer receive new features or content. Meta says support for the app's existing product will continue.

Image credit: Twisted Pixel Games

What the Meta VR studio closures involve

An internal memo confirmed the closures of Twisted Pixel Games, Sanzaru Games, and Armature Studio. Each studio has worked on notable virtual reality projects:

  • Twisted Pixel Games: Marvel's Deadpool VR.
  • Sanzaru Games: Asgard's Wrath.
  • Armature Studio: a VR port of Resident Evil.

Within, the developer of Supernatural, is also affected by the changes. The app will not receive new features or content, but Meta says it will continue supporting the existing product. That distinction is useful for current users: the announcement concerns future development, not an immediate end to the app's existing service.

How the changes fit into Reality Labs cuts

The studio closures follow a 10% cut to Meta's Reality Labs metaverse division. Overall layoffs at Reality Labs could affect up to 1,000 employees. Meta has described the broader strategy as shifting some investment away from the metaverse and toward wearables.

The company said savings from the effort are intended to support the growth of wearables this year. The announcement therefore connects the studio changes to a wider reallocation of investment, rather than describing them as isolated closures. Meta spokesperson Tracy Clayton confirmed that the reported contents of the internal memo were accurate.

When Meta acquired the studios

Meta acquired Sanzaru Games in 2020, then acquired Twisted Pixel Games and Armature Studio in 2022. Within was acquired in 2023. The acquisition of Within initially faced an objection from the Federal Trade Commission.

Former employees also shared news of the studio closures on social media. Among them were former Twisted Pixel level designer Andy Gentile and former Sanzaru senior level designer Ray West.

What players and Supernatural users should know

The announced changes have different implications depending on the project. The three game studios are closing, while the statement about Supernatural specifically says that new features and content will stop and existing-product support will continue. Users looking for practical updates should check official service communications for details about ongoing support, since the announcement does not specify its duration or scope.

For players, the closures mark a change in Meta's VR development operations, but the available information does not detail the status of every individual game or project. Avoid assuming that all existing titles will be removed; the announcement focuses on studio closures and the future development of Supernatural.

Conclusion

The Meta VR studio closures affect Twisted Pixel Games, Sanzaru Games, and Armature Studio as Reality Labs reduces investment in its metaverse division. Within will stop adding Supernatural features and content, while Meta says support for the existing product will continue. The company plans to redirect savings toward wearables this year.

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