Meta has reportedly initiated major layoffs within its AR and VR-focussed Reality Labs division, with around 10% of the workforce being cut, and at least three major game development studios shut down: Sanzaru Games, Armature Studio, and Twisted Pixel Games.
Per reporting from Bloomberg and posts on LinkedIn, dozens of developers are now out of work, as Meta’s AR/VR operations are slimmed.
Meta shuts down three VR-focussed studios – quick links
Meta turns its investment focus to wearables
In an internal post seen by Bloomberg, Andrew Bosworth, Chief Technology Officer of Meta, described a move away from an investment in the metaverse, into new avenues.
‘We said last month that we were shifting some of our investment from metaverse toward wearables,’ Bosworth reportedly said. ‘This is part of that effort, and we plan to reinvest the savings to support the growth of wearables this year.’
Tamara Sciamanna, director of Oculus Studios, reportedly confirmed that video games remain a priority investment for Meta, with the studio shut downs being part of a shift to ensure long-term sustainability.
‘These changes do not mean we are moving away from video games,’ Sciamanna reportedly said. ‘Gaming remains the cornerstone of our ecosystem. With this change we are shifting our investment to focus on our third-party developers and partners to ensure long-term sustainability.’
What to know about Sanzaru Games, Armature Studio, and Twisted Pixel Games
Per Bloomberg, a separate memo confirmed the closure of Sanzaru Games, Armature Studio, and Twisted Pixel Games, which had been working on various VR projects.
Sanzaru Games is most known for the award-winning Asgard’s Wrath VR game franchise, although it has a much longer history within the games industry. It was established in 2006, and has contributed to an array of popular games, including the Sly Cooper franchise (alongside Sucker Punch Productions), and the Spyro Reiginted Trilogy (alongside Toys for Bob).
Twisted Pixel Games was also founded in 2006, and worked on an array of original and licensed titles in its life span. It created The Maw and ‘Spolsion Man, and its most recent game was Marvel’s Deadpool, a VR title released in November 2025.
Armature Studio was founded in 2008, and made a name for itself porting various licensed titles, as well as developing its own games, like Batman: Arkahm Origins Blackgate. The studio’s most recent title was the Resident Evil 4 VR port for Meta Quest devices.
All three studios have reportedly been shuttered as part of sweeping changes at Meta, with developers laid off. Many have taken to LinkedIn to confirm their job losses, and to farewell the talented folks now out of work.
Also on ScreenHub: Mystery Sims game Project Rene is now a ‘mobile-first’ social life sim
EA and Maxis have released a far-ranging blog post detailing the future of The Sims in 2026 and beyond, with an array of important updates couched within. While the general tone is one of reassurance, with the Sims team keen to inform players it remains committed to developing diverse, creative games with meaningful storytelling, there’s also plenty to learn about what’s next for the studio’s major projects.
As shared, EA and Maxis are currently working on ‘new Sims experiences’ for PC, console, and mobile. The exact nature of these experiences is yet to be detailed, although it does appear they’re backed by ambition and the promise of ‘[opening] up a larger world of possibilities.’
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