Meta Shuts Down Twisted Pixel and Sanzaru Games

Another shift away from VR games that comes after years of heavy losses and unfulfilled metaverse ambitions.
Text: Marcus Persson
Published 2026-01-14

Meta has confirmed that both Twisted Pixel Games and Sanzaru Games have been shut down as part of a larger restructuring within the company's Reality Labs division. It has also been reported that Meta is looking to cut an additional 10% of its workforce within VR in order to save costs and shift more towards AI.

Twisted Pixel, which was responsible for (among other things) Marvel's Deadpool VR and Splosion Man, as well as Sanzaru, the developer of the Asgard's Wrath series, have both been confirmed to have closed their doors, with all employees being let go. Some of them took to social media to share the sad news.

Reality Labs has been suffering significant losses for several years and has been part of the larger so called "metaverse dream", which, as we know, has not exactly been the runaway success that Meta and Zuckerberg initially hoped for. This is not the first time Meta has shut down VR teams. Ready at Dawn was shut down just two years ago in the same manner, but this truly marks Meta's clear shift away from VR games.

We wish all those who've been affected the best of luck in the future

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