Meta Cuts Staff in Reality Labs and Shuts Down VR Game Studios

Published on January 14, 2026 | Translated from Spanish
Meta Reality Labs logo next to Oculus Quest virtual reality headsets on a dark background, symbolizing the metaverse division and layoffs.

Meta Reduces Staff in Reality Labs and Closes VR Video Game Studios

The company Meta carried out a new round of layoffs, affecting approximately ten percent of the workers in its Reality Labs division. This area is responsible for building the metaverse. The cuts have led to the closure of several virtual reality video game development studios owned by the company. 🎮

Development Studios That Are Disappearing

According to reports from former employees, such as ex-designer Andy Gentile, entire studios are closing their doors. These teams were responsible for some of the most recognized titles for Meta's VR platforms. Their disappearance raises questions about the company's future strategy in the interactive entertainment sector.

Affected Studios and Projects:
  • Twisted Pixel Games: Developed the game Deadpool VR for Marvel.
  • Sanzaru Games: Creator of the successful franchise Asgard's Wrath, exclusive to Meta's headsets.
  • Armature Studio: Adapted the classic Resident Evil 4 for the platform's virtual reality.
It seems the metaverse is now a place where developers can lose their jobs. An irony that Zuckerberg surely didn't plan when he talked about building the future.

The Reason Behind the Restructuring

This decision is part of a broader effort by Meta to organize its resources more efficiently. The Reality Labs division has recorded substantial financial losses in recent quarters, despite the huge investments in researching and producing hardware and software for the metaverse.

Key Objectives of the Measure:
  • Optimize operations and reduce structural costs.
  • Focus efforts and investment on the core projects of its long-term vision for the metaverse.
  • Reevaluate commitment to specific areas, such as the VR video game ecosystem.

Impact on Meta's Video Game Strategy

The closure of studios with successful and critically acclaimed titles suggests a possible change of course in Meta's strategy. Although the company has not detailed its plans, the decision raises doubts about its immediate commitment to attracting and retaining players in its virtual reality ecosystem.

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