Meta canceled the Batman: Arkham Shadow sequel, and UploadVR learned of it, implementing significant layoffs at Camouflaj, the developer of the first game.
Unlike Twisted Pixel Games (Deadpool VR), Sanzaru Games (Asgard’s Wrath), and Armature Studio (Resident Evil 4 VR), Camouflaj hasn’t shut down completely. However, the company has drastically reduced its workforce and plans to no longer develop VR games.
Additionally, UploadVR has been able to confirm that Sanzaru is working on a sequel to Arkham Shadow, which ended with the studio’s closure earlier this week.
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Batman: Arkham Shadow was a blockbuster title bundled with the Quest 3S, which has been free with the purchase of a new headset for over a year, and we highly praised it in our review.
In 2024, Camouflaj founder and studio head Ryan Payton told UploadVR that he “would love to” make a sequel. And four months ago, the voice actor for Commissioner Gordon confirmed that a sequel was in the works.
Work on that sequel started at Sanzaru Games rather than Camouflaj, but it has now completely finished and there will be no more sequels.
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Considering Camouflaj’s layoffs, we can confirm that only three game studios remain meaningfully active in Meta.
Beat Saber and Population: One are live service games, and there’s no indication that either will get a sequel. Meanwhile, Ouro Interactive remains fully focused on Horizon Worlds.
The closure of three studios and significant job cuts at Camouflaj are part of a broader strategic shift at Meta, with funding from VR being reallocated to smart glasses and seen as a reaction to the sales momentum the company saw across its various devices last year.
Through at least the first three quarters of this year, Quest headset sales were down compared to 2024. Meanwhile, sales of Ray-Ban Meta glasses skyrocketed, with several variations selling as quickly as they could be manufactured. This week, Bloomberg reported that Meta is considering doubling or even tripling its smart glasses production capacity.
Last month, Meta formally acknowledged that it would be “shifting some of its investments from the Metaverse into AI glasses and wearables,” and layoffs at acquired studios were some of the first casualties of this shift.
