Meta shuts down studio behind Deadpool VR video game

Meta has reportedly laid off several staff under its Reality Labs division. The job cut has also led to the shutdown of three game studios, including Twisted Pixel, the developers of the video game, Deadpool VR, released on November 18, 2025.

First reported by Bloomberg, the cut affects more than 1,000 jobs and is a result of Meta's decision to shift its investment from metaverse to wearables, according to an internal memo and a statement from a spokesperson. The report says the plan is to reinvest the savings to support the growth of wearables in 2026.

In addition to Twisted Pixel Games, the layoff has also led to the shutdown of Armature, the studio behind the VR version of Resident Evil 4, and Sanzaru, the minds behind Asgard's Wrath and Marvel Powers United. Deadpool VR is a $49.99 game exclusive to Meta's Quest 3 and Quest 3S headsets. It has a rating of 4.6 out of 5 stars on the Meta Store.

Despite the closure of these studios, Meta claims that it isn't moving away from video games, as it describes gaming as the cornerstone of its ecosystem. However, its investments will now focus on third-party developers and partners.

The closure of these studios leaves Meta with five gaming studios, which include Beat Games, BigBox, Camouflaj, Glassworks, and Ouro. Hopefully, these studios will continue to develop games for the Meta Quest 3 and Meta Quest 3S (256GB version available on Amazon for $359.99).