Meta closes its Deadpool VR game development studio as part of a restructuring of Reality Labs.
In an effort to streamline its Reality Labs division, Meta laid off hundreds of employees and closed three game studios, including Twisted Pixel, the developer behind Deadpool VR.
Meta has just implemented a large-scale workforce reduction targeting its Reality Labs division, resulting in the closure of three virtual reality game development studios. This move is confirmed as part of a strategic restructuring plan aimed at optimizing the company's operations in the virtual reality (VR) and augmented reality (AR) sectors.
Twisted Pixel and the end of the Deadpool VR project.
Among the affected entities, Twisted Pixel is the most notable name in the gaming community. This studio was responsible for developing Deadpool VR, one of the projects expected to enrich the content ecosystem for Meta's virtual reality devices. The closure of this studio means that the future of projects related to the Deadpool brand on the VR platform is becoming uncertain.
Besides Twisted Pixel, two other game studios are also on the list of those to be dissolved. According to reports, this restructuring has resulted in hundreds of job losses at Reality Labs. This is a drastic move by the corporation amidst high operating costs for developing the Metaverse.
Restructuring pressure at the Reality Labs division
Reality Labs, a core component of Meta's long-term vision, is facing significant financial challenges. Mass layoffs and studio closures indicate Meta is shifting from a scaling strategy to one focused on operational efficiency and more profitable core projects.
Although the staff cuts have raised concerns about a potential slowdown in the VR gaming sector, Meta has shown a willingness to sacrifice smaller studios to focus on larger goals in its roadmap for developing next-generation virtual reality hardware and software. Currently, the identities of the two remaining studios being closed have not been disclosed.
