Meta, the company behind Facebook and Oculus, has been slowly loosening its grip on the VR gaming space as it begins a sharp pivot into AI and AR wearables. In 2020, the tech giant began an acquisition spree of studios whose titles had performed successfully on Oculus platforms, many of which it has since closed following this continued pivot away from gaming. Now, it appears that the studio has closed Oculus Studios developers Twisted Pixel Games, Sanzaru Games, and Armature Studios.
The first of these studios that Meta acquired was Sanzaru Games, who had developed the VR RPG Asgard’s Wrath. Under Meta, they would go on to ship Asgard’s Wrath II, nominated for Best AR/VR Game at the 2024 Game Awards, a AAA flagship game for the Meta Quest 3 that is often considered one of the greatest and most feature rich virtual reality games ever made.

Twisted Pixel was acquired in 2021, and is perhaps the most surprising of the closures given that the studio had just shipped Marvel’s Deadpool VR less than two months ago, a game Meta billed as its big “Holiday 2025” title. Armature Studios was acquired in October 2022 after the success of its Resident Evil 4 VR port/remake for Meta Quest 2. It had never shipped a game under the Oculus Studios banner.
These closures come alongside news that Meta is laying off roughly ten percent of the Reality Labs division (formerly known as Oculus). The fitness software Supernatural will also no longer be receiving new content as the team has been restructured to support the current version of the game.
The closure of all three of these studios is noteworthy to those outside of the VR space, as all three have storied histories originating before virtual reality. Twisted Pixel was one of the forefathers of indie gaming, having developed early Xbox Live Arcade titles The Maw and ‘Splosion Man.
Sanzaru Games had a history of working with Sony, having developed The Sly Collection before going on to develop Sly Cooper: Thieves in Time for PS3 and PS Vita. Armature Studio was a popular port studio, but also developed the Xbox One console exclusive ReCore and handheld spin-off Batman: Arkham Origins Blackgate.
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