Meta Cuts Back on VR Studios Following Reality Labs Restructuring

Meta has closed down three of its virtual reality studios as part of a broader 10% reduction in staff at its Reality Labs division. According to an internal memo obtained by Bloomberg, the affected studios include Twisted Pixel Games, known for Marvel's Deadpool VR, Sanzaru Games, which developed Asgard's Wrath, and Armature Studio, responsible for the Resident Evil VR port. Additionally, Within, the company behind the VR fitness app Supernatural, will cease development of new features and content, although support for the existing product will be maintained. A Meta spokesperson has confirmed the accuracy of the information. Former employees of the affected studios have taken to social media to discuss the closures. Meta had acquired these studios in recent years, with Sanzaru joining in 2020, Twisted Pixel and Armature in 2022, and Within in 2023, despite initial objections from the Federal Trade Commission. The move is part of Meta's plan to reallocate resources, shifting focus from the metaverse towards wearables, a strategy announced last month, which could impact up to 1,000 employees at Reality Labs. The company plans to reinvest the savings from these cuts to drive the growth of its wearables segment this year.