Meta's VR Studio Shutdowns: Deadpool, Asgard's Wrath, and Resident Evil 4 Affected (2026)

Meta has made a significant move by shutting down three of its acquired VR game studios: Twisted Pixel Games, Sanzaru Games, and Armature Studio. This decision comes as part of a broader strategy shift at Meta, where funding for VR is being redirected towards smart glasses, influenced by the strong sales momentum of these devices last year. The closures of these studios are the first casualties of this shift, and it's likely that more changes are on the horizon. Twisted Pixel Games, known for titles like Deadpool VR and Wilson's Heart, was acquired by Meta in 2022. Sanzaru Games, responsible for Asgard's Wrath and Marvel Powers United VR, was acquired by Facebook in 2020. Armature Studio, which brought PC titles to consoles and developed Resident Evil 4 VR, was also acquired by Meta in 2022. These closures are part of a larger trend at Meta, where funding for VR is being redirected towards smart glasses, a move that has sparked controversy and raised questions about the future of VR at the company. The closures of these studios are a stark reminder of the challenges facing the VR industry, and the need for innovation and adaptation in the face of changing market dynamics.

Meta's VR Studio Shutdowns: Deadpool, Asgard's Wrath, and Resident Evil 4 Affected (2026)
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