Meta has shuttered three internal VR studios: Armature, Sanzaru, and Twisted Pixel. This move ends development on popular titles like *Marvel's Deadpool VR* and *Asgard's Wrath*, and the company confirmed its fitness app Supernatural won't receive new content updates. Employees confirmed the closures on social media, signaling a sharp pivot in Meta's gaming strategy.

A Meta spokesperson framed the shutdowns as a strategic shift from the metaverse toward wearables, promising to reinvest savings into that growing sector. This follows Meta's recent decision to pause third-party Horizon OS headsets from partners like Asus and Lenovo, raising serious doubts about the company's long-term commitment to virtual reality hardware and software.

While internal memos claim Meta isn't abandoning games, the focus is now on third-party developers rather than in-house production. The company hasn't released a new headset since 2024's Quest 3S. Investors and developers are watching closely to see if this withdrawal from first-party content will stifle the VR ecosystem Meta spent billions trying to build.