Batman: Arkham Shadow developer reported to have been hit with layoffs too

A new report states that Meta also fired most of the staff and cancelled its future projects.
Text: Ben Lyons
Published 2026-01-15

Just recently, we covered the news that Meta had decided to layoff and close three of its virtual reality video game development studios, including Marvel's Deadpool VR maker Twisted Pixel and Asgard's Wrath creator Sanzaru Games. Seemingly, these weren't the only studios that faced the judgement of Meta, as a new report claims that even Batman: Arkham Shadow developer Camoflaj has been gutted too.

As per Aftermath, Meta employees have supposedly spoken out and stated that as part of the recent layoffs, Camoflaj was hit extremely hard, to the point that only a "handful of employees" remains at the studio. Meta even pulled the plug on the developer's upcoming projects, cancelling its future ideas.

The studio did manage to survive this purge and remains active, but after such a heavy hit, you do have to wonder what the future holds for the company.

As for the future of Batman: Arkham Shadow, a VR title that proved to be a massive hit with critics and the fans that played it, the report claims that a sequel was in production but not at Camoflaj. Rather the responsibilities were handed to Sanzaru, which has since been gutted and shut down. It's unclear if this means that the series is returning to Camoflaj, or if it's the end of VR Batman adventures. Considering how much VR investment has just been pulled by Meta, the latter seems more likely.

This report is corroborated by former Camoflaj employees taking to LinkedIn to confirm they have been laid off, but what we are yet to hear is the official complete impact and just how many developers have been let go from the company.

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