Meta Shuts Down Twisted Pixel and Sanzaru Games
Meta has closed two of its VR game studios, Twisted Pixel Games and Sanzaru Games, as part of a broader shake-up inside the Reality Labs division. The move arrives alongside reports that the company is preparing to trim its VR workforce by roughly 10% as it tightens costs and reallocates resources toward artificial intelligence initiatives.
Both studios have ceased operations, with staff laid off as part of the restructuring. Team members from each studio shared news of the closures on social platforms, signaling an abrupt end for two teams that played prominent roles in Meta’s recent VR slate.
Twisted Pixel rose to prominence with kinetic action titles like Splosion Man before pivoting into VR, while Sanzaru became a flagship developer for Meta’s premium VR ambitions through the Asgard’s Wrath series. Their shutdowns represent a significant contraction of first-party VR game development under Meta’s umbrella.
The decision reflects ongoing financial headwinds at Reality Labs, the division tasked with building Meta’s VR, AR, and mixed reality hardware and software. Despite massive investment, the broader “metaverse” push has yet to deliver the scale of consumer traction once envisioned, and the company appears to be consolidating around areas with nearer-term returns—particularly AI.
This is not the first time Meta has wound down a major VR studio. Ready at Dawn, another high-profile developer acquired for the company’s VR efforts, was closed two years ago. Taken together, these moves suggest a sustained shift away from building large, internally led VR game productions.
What the closures signal
- Twisted Pixel and Sanzaru’s shutdowns underscore a strategic refocus within Meta, with investment increasingly oriented toward AI and core platform technology over in-house VR game development.
- Reports of an additional 10% reduction in VR headcount indicate deeper belt-tightening across Reality Labs.
- The closures continue a multi-year recalibration of the company’s metaverse ambitions as it weighs costs against adoption trends.
For the VR industry, the loss of two experienced studios may have ripple effects. Both teams contributed to the maturation of VR game design, particularly in high-production-value experiences aimed at showcasing new hardware. Their absence could narrow the pipeline of first-party tentpoles from Meta, placing greater emphasis on third-party partnerships and community-driven content.
At the same time, a pivot toward AI mirrors broader trends across the tech sector, where generative tools and machine learning have become central priorities. How that strategy ultimately intersects with VR and mixed reality—whether through smarter system software, creation tools, or new types of interactive experiences—remains to be seen.
As restructuring continues, more details about project handoffs, support plans, and the status of in-development work may emerge. For now, the closures mark a decisive, if sobering, moment in Meta’s evolving approach to immersive entertainment.
