Key Takeaways
1. Meta is cutting over 1,000 jobs in its Reality Labs division and closing three game studios, including Twisted Pixel.
2. The layoffs are part of a strategic shift to redirect funding from the metaverse to wearables, with plans to reinvest savings in 2026.
3. Along with Twisted Pixel, other studios closed include Armature and Sanzaru, impacting notable VR titles.
4. Despite studio closures, Meta remains committed to gaming, focusing future investments on third-party developers and partners.
5. Meta still has five operational gaming studios, including Beat Games and BigBox, which are expected to continue creating games for Meta Quest headsets.
Meta has recently made the decision to cut several jobs within its Reality Labs division. This move has also resulted in the closure of three game studios, with Twisted Pixel being one of them. Twisted Pixel is known for developing the video game Deadpool VR, which was launched on November 18, 2025.
Job Cuts and Shifts in Focus
According to a report from Bloomberg, over 1,000 jobs are affected by this layoff. The changes stem from Meta’s strategic choice to redirect its funding from the metaverse towards wearables. This information comes from an internal memo and statements from a company spokesperson. The report indicates that the savings from these layoffs will be reinvested to foster the growth of wearables in 2026.
Studio Closures
Besides Twisted Pixel Games, the layoffs have also resulted in the closure of Armature, the studio that created the VR version of Resident Evil 4, and Sanzaru, known for Asgard’s Wrath and Marvel Powers United. Deadpool VR is priced at $49.99 and is exclusive to Meta’s Quest 3 and Quest 3S headsets. It has earned a rating of 4.6 out of 5 stars on the Meta Store.
Future of Gaming at Meta
Even with the shutdown of these studios, Meta insists that it remains committed to video games, calling gaming a crucial part of its ecosystem. However, the company’s future investments will now primarily target third-party developers and partners.
The closure leaves Meta with five gaming studios still operational, which are Beat Games, BigBox, Camouflaj, Glassworks, and Ouro. It is hoped that these studios will keep on creating games for the Meta Quest 3 and Meta Quest 3S (with the 256GB version listing for $359.99 on Amazon).
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