Technology company formerly known as Facebook, Inc. meta We just confirmed that three of our own VR studios are closing due to layoffs. These closures also include Sanzaru Games, the developer of: Asgard's Wrath And its sequels are two of the highest-rated Meta Quest exclusives.
Founded in 2006 by former Activision employees, Sanzaru Games debuted in 2008. ninja reflexesA party game for the Nintendo Wii and DS that received mixed reviews from critics. A year later, Sanzaru Games developed a PS2 port. Secret Agent ClankPSP Ratchet and Clank Spin-off. Sanzaru continued to work closely with Sony in the early 2010s to deliver both. cunning collection and Sly Cooper: Thieves in TimeWith PS Vita port god of war collection.
It was released in 2019 by Sanzaru Games and Oculus Studios. Asgard's WrathA critically acclaimed exclusive action RPG. Following launch Asgard's WrathSanzaru Games was acquired by Facebook/Meta and joined Oculus Studios in February 2020. Under this new banner, Sanzaru Wrath of Asgard 2 In 2023, the Meta Quest 3 exclusive, which currently holds a top critic average of 91 on OpenCritic, became the second highest-rated VR game after OpenCritic. Half-Life: Alyx.
On the morning of January 12, 2026, the New York Times reported that Meta was planning to lay off approximately 10-15% of the employees working in its Reality Labs division. This division includes Oculus Studios. This report appears to be true, as on January 13th Meta confirmed the closure of three studios under the Reality Labs banner: Sanzaru Games, Armature, and Twisted Pixel. News of the layoffs was first reported by @andyTHPS of X, a former Vicarious Visions developer who worked at Twisted Pixel until January 13th. “It looks like the entire Twisted Pixel game studio has closed down, as has Sanzaru Games,” Andy wrote.
Gematsu reported on the layoffs, confirming that Twisted Pixel, Sanzaru, and Armature were indeed all terminated. Gematsu also received the following official statement from Meta regarding the closure:
“We announced last month that we were shifting a portion of our investments from Metaverse to wearables. This is part of that effort and we plan to reinvest the savings to support the growth of wearables this year.”
Sanzaru is currently responsible for two of the most acclaimed Meta Quest VR games, but Armature and Twisted Pixel have also proven themselves more than anything over the years. Founded in 2008, Armature is best known for its development. Batman: Arkham Origins Blackgate Xbox One Console Exclusive RecoreA PS Vita port was also produced. Metal Gear Solid HD Collection and injusticeAnd most importantly, you are responsible for receiving favorable reviews. resident evil 4 It's a port of Meta Quest 2 with a top critic average of 86 on OpenCritic. Armature never released a game during the Meta era.
Twisted Pixel also has a long history in video games, having been founded in 2006. Twisted Pixel is probably best known for: 'Splosion Man and sheep explosion manare two of the most acclaimed and iconic games of the Xbox Live Arcade era. Twisted Pixel was acquired by Meta in November 2021, with the studio's only games released under this banner being last year's Marvel's Deadpool VR. but Deadpool VR Although it's far from the most revered meta-quest title, it still received decent critical reviews, averaging a top critic score of 78 on OpenCritic at the time of this writing. However, despite their individual success, Armature, Twisted Pixel, and Sanzaru Games have all officially closed, and none are likely to return in the future.
Source: Gematsu
