The imminent arrival of Valve's Steam Frame means the existing best VR headset rivals have a big fight on their hands in 2026, but instead of lacing up its gloves, it seems as though Meta is already backing away with its tail between its legs. Meta is issuing large-scale lay-offs to its Reality Labs gaming division, shuttering three studios that have made some of the publisher's biggest and most popular games for the Meta Quest 3, 3S, and Quest 2.
Twisted Pixel, the developer behind the recently launched Deadpool VR, has found itself in the line of fire. Sanzaru Games, the studio behind the Asgard's Wrath franchise, and Armature, which produced the widely loved VR port of Resident Evil 4, have also been closed, as reported by UploadVR.
