Meta is making a massive shift in its VR strategy, and it’s bad news for fans of in-house games. The company just closed three of its biggest VR studios: Armature, Sanzaru, and Twisted Pixel. On top of that, Meta confirmed that its popular fitness app, Supernatural, will no longer receive new workouts or feature updates.
Employees from the affected studios shared the news on social media after the layoffs hit. This move marks a major retreat for Meta’s gaming division. Twisted Pixel recently released Marvel’s Deadpool VR, and Sanzaru was the team behind the massive hit Asgard’s Wrath. Armature was also a heavy hitter, responsible for bringing Resident Evil 4 to the Quest back in 2021.
Users of the fitness app Supernatural received a blunt message on Facebook regarding the changes. The company explained that, due to organizational shifts, the app is entering a permanent maintenance mode. While existing members can still use the app, the daily fresh content that made the subscription worth it is gone for good.
Meta says this isn’t about giving up on VR entirely, but rather about where the money goes. A spokesperson told Engadget that the company is moving its investment from “Metaverse” projects toward “Wearables.” They plan to use the savings from these closures to push the growth of wearable tech throughout the year.
This pivot creates significant uncertainty for the Quest ecosystem. Meta hasn’t announced a new headset since the Quest 3S launched in 2024. Just last month, the company also hit the brakes on partnerships with Asus and Lenovo, who were supposed to build their own headsets using Meta’s operating system. Now, Meta is scaling back its own game development too.
Internally, Meta is trying to calm fears. Oculus Studios director Tamara Sciamanna told staff in a memo that the company still cares about video games. However, she noted that Meta will now focus on supporting third-party developers rather than developing its own titles. For players, this means the future of the Quest might rely entirely on outside studios rather than Meta’s own creative teams.
