Meta Shuts Down Key VR Studios, Shifting Focus to Wearables

Meta has closed several VR studios, raising concerns about the future of VR gaming, but new opportunities may still arise.

Meta Shuts Down Key VR Studios, Shifting Focus to Wearables
Sarah Collins

Sarah Collins

Computing Editor

Specializes in PCs, laptops, components, and productivity-focused computing tech.

Meta appears to be distancing itself from VR gaming, as evidenced by the recent closure of Twisted Pixel, Sanzaru, and Armature, the studios behind Marvel's Deadpool VR, Asgard’s Wrath, and Resident Evil 4 VR, among other projects.

Additionally, Supernatural, the popular VR fitness app that was central to many users' exercise routines, will no longer receive updates or new content, according to announcements made in the Supernatural Facebook group and emails sent to users. While it will remain operational, concerns linger about the future of its licensed music catalog and whether partnerships will continue.

This shift follows last year's news that Meta had “paused” its Horizon OS collaborations with Asus and Lenovo.

In a statement to Engadget, a Meta spokesperson confirmed, “We said last month that we were shifting some of our investment from Metaverse toward Wearables. This is part of that effort, and we plan to reinvest the savings to support the growth of wearables this year.”

When I reached out to Meta regarding claims of abandoning VR, a representative stated, “Meta doesn’t have anything to share on this.”

While Meta may not have much to say, it’s evident that the company is not prioritizing VR as it once did.

The Oculus Quest 2 marked a significant moment for VR, especially during the COVID-19 lockdowns, and it sold exceptionally well, surpassing all previous Oculus headset sales within months. However, the Meta Quest 3 has not made the same impact, despite being a remarkable device.

Now, Meta seems to have a new focus on AI and wearables, such as the Ray-Ban Meta glasses, as it reallocates investments towards this emerging sector.

Is VR gaming dead?

Despite these developments, VR gaming is not yet dead. Valve's Steam Frame headset is set to launch in 2026, and while it may not be as affordable as the Quest 3, it promises to combine the functionality of a Steam Deck with VR capabilities, which could lead to a successful entry into the market.

If companies like Valve or Google bolster their XR gaming initiatives, there’s potential for growth. The Supernatural team has valuable expertise in XR fitness, and Google’s existing services like YouTube Music could enhance workout options.

While the recent news is disappointing for Quest fans, there remains hope for a revitalized VR landscape in the coming years, even if it emerges from different sources.

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