Meta is reportedly laying off around 10% of its Reality Labs workforce, impacting over 1,000 employees, as it shifts focus from VR projects to AI, phones, and wearable technology. This decision includes the closure of significant VR studios like Twisted Pixel, which created Deadpool VR, Armature Studio, known for Resident Evil 4 VR, and Sanzaru Games, the team behind Asgard's Wrath. Despite these layoffs and studio closures, Meta reassured that it remains committed to virtual reality while reallocating resources to support the expansion of wearables. Critics suggest that this move follows substantial financial losses estimated at over $60 billion since 2020, causing Meta to reevaluate its investments.

Why is Meta shutting down its VR studios? nMeta is shutting down its VR studios to redirect investments from the Metaverse toward AI and wearable technology as they face significant financial losses. n

Twisted Pixel is recognized for its innovative titles in the gaming world, including the iconic The Maw and 'Splosion Man, and gained prominence after becoming part of Microsoft Studios. Meta acquired Armature Studio and Twisted Pixel in 2022, and Sanzaru Games in 2020, aiming to enhance their VR portfolio. However, the shift towards wearables reflects the company's new strategic direction in light of ongoing financial challenges.