Meta has shut down three of Oculus Studios’ internal developers, new reporting has revealed. Twisted Pixel Games, Sanzaru Games, and Armature Studio have all been impacted.
Outlets suchs as The New York Times indicated that cuts were coming to Meta’s Reality Labs business, which encompasses first-party VR game development. On Tuesday, developers from the three aforementioned studios posted on X and other social media websites, indicating that they had lost their jobs.
UploadVR confirmed that the entirety of Twisted Pixel Games, Sanzaru Games, and Armature Studios were impacted as part of this round of Meta layoffs. In a statement to Polygon, Meta’s Tracy Clayton says these cuts were made so the company could focus on Wearables like its Ray-Ban Meta AI glasses.
It’s a significant gutting that massively reduces Meta’s AAA first-party development capabilities for its Quest headsets. All three studios shut down today are also quite well known, and had storied histories prior their their acquisitions by Meta.
Twisted Pixel Games initially gained fame thanks to Xbox Live Arcade titles like ‘Splosion Man and Comic Jumper: The Adventures of Captain Smiley. It had worked on VR games for the past decade, just releasing Marvel’s Deadpool VR in November 2025.
Sanzaru Games was the studio behind Asgard’s Wrath 2, which was a free pack-in title for the Meta Quest 3. Before that, it worked on the original Asgard’s Wrath in VR and some Sony 3D platformer spin-offs like Secret Agent Clank and Sly Cooper: Thieves in Time.
Finally, Armature Studio was founded by former Retro Studios developers and is best known for the Xbox One console exclusive ReCore. Its most recent game was an impressive VR port of Resident Evil 4 in 2021.
As it stands, Beat Saber developer Beat Games and Batman: Arkham Shadow developer Camouflaj are still in operation, so Meta’s first-party development capabilities aren’t completely gone. Still, it’s a heavy blow to VR game development as Meta is the most prominent player in the virtual reality space.