Skip to content

ThePawn02

Gaming and Streaming Content

  • eSports
  • Guides
  • Headlines
  • News
  • Reviews
  • Uncategorized
Primary Menu
  • Home
  • Watch Live
  • News
  • eSports
  • Blog
  • Reviews
  • Guides
  • Guild Login
    • Guild Mentality
    • The Zealots
    • Malign
  • Socials
    • Youtube Channel
    • Twitch Channel
    • Kick.com
    • Twitter
    • Instagram
    • Facebook
Subscribe
  • Home
  • 2026
  • January
  • Meta Shuts 3 VR Studios and Lays Off Hundreds of Devs as It Pivots From Virtual Reality and the Metaverse to AI
  • Headlines

Meta Shuts 3 VR Studios and Lays Off Hundreds of Devs as It Pivots From Virtual Reality and the Metaverse to AI

Meta Shuts 3 VR Studios and Lays Off Hundreds of Devs as It Pivots From Virtual Reality and the Metaverse to AI
ThePawn.com January 14, 2026 3 minutes read
Meta Shuts 3 VR Studios and Lays Off Hundreds of Devs as It Pivots From Virtual Reality and the Metaverse to AI

Meta is laying off around 10% of staff at its Reality Labs division as part of sweeping cuts set to affect more than 1,000 people. This includes the closure of a number of VR-first studios, such as Twisted Pixel, the studio behind Deadpool VR, Resident Evil 4 VR developer Armature Studio, and Asgard’s Wrath maker, Sanzaru Games. According to Bloomberg, the cuts come as Meta pivots away from the Metaverse towards AI, phones, and wearable tech.

The cuts come just over four years after Facebook changed its name to Meta and went big on virtual reality and the Metaverse.

Letters reportedly went out yesterday (Tuesday, January 13) morning, and developers from the impacted studios shared their shock on social media throughout the day.

“I’ve just been laid off. It appears the entire Twisted Pixel games studio has been shut down. Sanzaru Games, too,” one now former member of staff said, while a designer wrote: “unfortunately, I was part of the layoffs today at Meta, and will be seeking a new role. To my Twisted Pixel Games family: it was an honor to work alongside you for 3.5 years and ship Marvel’s Deadpool VR. We made something really special together and no one can ever take that away.”

Twisted Pixel is the studio behind a number of popular Xbox Live Arcade games, such as 2009’s The Maw and ‘Splosion Man. It became a part of Microsoft Studios in 2011, and went on to release Xbox 360 Kinect-exclusive shooter The Gunstringer, and Xbox One game LocoCycle, before becoming an independent company again in 2015 and moving into VR game development.

Meta only acquired Armature and Twisted Pixel in late 2022, and Sanzaru in 2020. However, it is now seemingly shedding much of its internal VR business as Meta scrambles to recover billion-dollar losses and pivot to AI.

In a statement, Meta confirmed the three studio closures: “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.”

According to Reuters, CEO Mark Zuckerberg prioritized and spent heavily on the Metaverse, only for the business to burn more than $60 billion since 2020. The Reality Labs business also produces Meta’s Quest mixed-reality headsets. According to CNBC, Meta isn’t abandoning VR entirely. It is now courting developers who build games for Roblox to build experiences for Horizon Worlds.

Vikki Blake is a reporter for IGN, as well as a critic, columnist, and consultant with 15+ years experience working with some of the world’s biggest gaming sites and publications. She’s also a Guardian, Spartan, Silent Hillian, Legend, and perpetually High Chaos. Find her at BlueSky.

feedzy_import_tag feedzy_import_tag

About the Author

ThePawn.com

Administrator

Visit Website View All Posts

Post navigation

Previous: PlayStation Plus January 2026 Game Line-up Leaked, Includes Resident Evil Village
Next: Bobby Kotick Claims Activision, Call of Duty, and Consoles Are Doing So Poorly It Proves He Was Right to Sell Activision Blizzard to Microsoft for $69 Billion

Related News

‘This is a Bad Idea’: Harry Potter Movie Trio Were Pitched a Wizard of Oz Adaptation With Emma Watson as Dorothy and Daniel Radcliffe as the Cowardly Lion
  • Headlines

‘This is a Bad Idea’: Harry Potter Movie Trio Were Pitched a Wizard of Oz Adaptation With Emma Watson as Dorothy and Daniel Radcliffe as the Cowardly Lion

ThePawn.com February 20, 2026 0
Ubisoft Insists MIA Splinter Cell Remake Still in Development Despite Fresh Layoffs
  • Headlines

Ubisoft Insists MIA Splinter Cell Remake Still in Development Despite Fresh Layoffs

ThePawn.com February 20, 2026 0
Resident Evil Requiem Has a Bizarre Ultra-Limited Edition With Exercise Equipment in Japan — and It Sold Out Almost Instantly
  • Headlines

Resident Evil Requiem Has a Bizarre Ultra-Limited Edition With Exercise Equipment in Japan — and It Sold Out Almost Instantly

ThePawn.com February 20, 2026 0

Latest YouTube Video

Check out these awesome streamers

ThePawn02 on twitch

From Gamewatcher

  • How to Get Meat and Meat Bites in Starsand Island
  • Ranking Games With an Unconventional Storytelling Approach: From High on Life 2 to Portal
  • Transport Fever 3 Preview
  • Disciples: Domination Review
  • Nioh 3 Review

From IGN

  • Pokémon TCG: Everything You Need to Know About First Partner Illustration Collection Series 1
  • Magic Market Watch: Fresh Unbans Spring Some Massive Surprises Post Lorwyn Eclipsed
  • Nier: Automata Has Now Sold 10 Million Copies
  • Capcom Pledges 'Firm Action' Following Widespread Resident Evil Requiem Leaks, Begs Fans Not to 'Ruin' Excitement for Others
  • Bluepoint Is Yet Another PlayStation Acquisition Horror Story

From eSports Insider

  • KESPA highlights the economic power of esports events in South Korea
  • Immutable Gamers Race for Bigger $60K Weekly Rewards After Dynamic Tier Upgrade
  • VALORANT Masters Santiago 2026 preview: format, schedule, teams, and more
  • VALORANT joins 2026 Esports Nations Cup line-up
  • VALORANT player Xiesta signs a four-year contract with Gen.G

.

You may have missed

Security researchers claim Persona, the provider behind Discord’s UK age verification ‘experiment’, performs ‘269 individual verification checks’ on user data, including those for terrorism and espionage
  • News

Security researchers claim Persona, the provider behind Discord’s UK age verification ‘experiment’, performs ‘269 individual verification checks’ on user data, including those for terrorism and espionage

ThePawn.com February 20, 2026 0
Arc Raiders proves it has one of the most wholesome fanbases once again, as a stranger spends 15 minutes painstakingly escorting a downed raider to safety
  • News

Arc Raiders proves it has one of the most wholesome fanbases once again, as a stranger spends 15 minutes painstakingly escorting a downed raider to safety

ThePawn.com February 20, 2026 0
Capcom Begs Fans Not To Share Resident Evil Requiem Footage As Spoilers Start Leaking
  • News

Capcom Begs Fans Not To Share Resident Evil Requiem Footage As Spoilers Start Leaking

ThePawn.com February 20, 2026 0
Pokémon FireRed And LeafGreen On Switch Has A Sick Special Edition Most People Can’t Get
  • News

Pokémon FireRed And LeafGreen On Switch Has A Sick Special Edition Most People Can’t Get

ThePawn.com February 20, 2026 0
Privacy Policy
  • Home
  • Watch Live
  • News
  • eSports
  • Blog
  • Reviews
  • Guides
  • Guild Login
  • Socials
  • Twitch
  • YouTube
  • Instagram
  • Twitter
  • Facebook
  • Kick.com
Copyright © All rights reserved. | MoreNews by AF themes.