Meta, the tech giant striving to dominate the virtual reality (VR) space, has made a shocking move: its latest round of layoffs, cutting 10% of its Reality Labs metaverse division, includes the closure of some of its beloved VR gaming studios. For gamers and developers alike, this marks a sad moment in the evolution of VR entertainment.

Among the casualties are three notable studios—Twisted Pixel Games, Sanzaru Games, and Armature Studio. These studios are behind some iconic VR titles, including Marvel’s Deadpool VR, Asgard’s Wrath, and the VR port of Resident Evil 4. Their closure was brought to light by Andy Gentile, a former level designer at Twisted Pixel, who shared the devastating news on LinkedIn. "Unfortunately, Twisted Pixel Games has been closed as a result of strategy changes at Meta," Gentile stated, underscoring the toll these cuts have taken not only on innovation but also on people's careers.

Other employees from Meta's VR division have confirmed these shutdowns on social media, posting emotional goodbye messages and reflecting on the work they’ve done in advancing VR gaming. These closures are part of larger layoffs Meta initiated amid its pivot toward AI and attempts to streamline its highly ambitious—yet controversial—metaverse project. The challenges of profitability and mounting skepticism over the metaverse’s viability may have contributed to this cost-cutting decision.

Meta initially presented the metaverse as the next evolution of the internet—a place where virtual worlds would become a hub for work, play, and social interaction. It invested billions into Reality Labs to make this vision a reality. However, over the past few years, the project has faced backlash over its financial losses, questions about its practicality, and fierce competition from companies focusing more directly on VR hardware and gaming experiences.

This news not only sets back Meta’s metaverse dream but raises a broader question about the future of VR. For developers, the closure of these studios is bittersweet; they had pushed the boundaries of what VR could offer to gamers. For players, it’s a concerning sign of turbulence in an industry everyone had hoped was just beginning to hit its stride. Meta may feel this decision will allow it to focus on refining its long-term roadmap, but these layoffs reveal the fragility of what was once considered a groundbreaking path forward.

The loss of top-tier VR gaming talent is a painful reminder of the volatile nature of the tech world, especially in unproven arenas like the metaverse. While fans and developers mourn the closure of these studios, the future of Meta’s bold vision feels increasingly uncertain.