A report from the on Monday revealed that Meta would be laying off 10% of its Reality Labs division, the branch of its business under which it works on products like the Metaverse, and also houses its internal VR teams under Oculus Studios , including Deadpool VR developer Twisted Pixel Games and Asgard's Wrath 2 developer Sanzaru Games .

Today, as developers began sharing the news that they had been impacted by the cuts, we learned that at least two whole studios, the aforementioned Twisted Pixel Games and Sanzaru Games, would be shut down , with the entirety of their teams laid off.

The first signal came from Andy Gentile , a designer at Twisted Pixel, who shared on his that not only had he been laid off, but the entire studio, along with Sanzaru Games, had been shut down.

It's unclear how many people have been impacted by the cuts, but more developers have come forward to confirm the news of the two studios shutting down, including a senior level designer at Sanzaru, Ray West, who , " Welp. As many will hear soon, several Meta game studios were closed today, including Sanzaru. It was an amazing team of powerhouse talent, and I'm really glad to have gotten to know everyone there. "

Twisted Pixel is known for titles like Deadpool VR, 'Splosion Man, and Path of the Warrior, while Sanzaru was highly regarded for its Asgard's Wrath titles, the second of which is commonly known as one of the best VR titles to release in recent years.

Sanzaru also has a place in the hearts of many longtime PlayStation fans, as it was also the team that ported the first three Sly Cooper games to the PlayStation 3 and PlayStation Vita, and even developed the fourth entry in the franchise, Sly Cooper: Thieves in Time. Sanzaru was also responsible for ports of the God of War Collection and Secret Agent Clank.

Both studios were founded in 2006, which means that Meta is shuttering them just as they were set to hit their 20th anniversaries. A milestone that not many studios get to hit anymore in today's unstable video game industry. It's altogether an unfortunate start to 2026, and a sign that the mass layoffs that have plagued the industry for the last few years aren't going away anytime soon.

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