2024's Batman: Arkham Shadow was one of the best games to release that year, despite it being a VR Meta Quest 3 exclusive and not arriving until December. A sequel was accidentally confirmed by one of its voice actors, Mark Rolston, who was set to play Commissioner Gordon in the coming sequel. But a new report from UploadVR reveals that Meta's recent 10% layoff to its Reality Labs division hit developer Camouflaj with "significant" layoffs, cancelling the sequel, and marking the end of Camouflaj developing VR games entirely.
Twisted Pixel Games and Sanzaru Games were both shuttered by Meta as part of the recent layoffs, which saw 1,000 people get laid off across the Reality Labs branch of Meta. While Camouflaj was one of the few that didn't get entirely shut down, according to the report, the studio "has seen significant layoffs, and will no longer be developing VR games."
The report also adds that Sanzaru Games was working on the Arkham Shadow sequel alongside Camouflaj, though that work ended once Sanzaru was shuttered, which also contributed to the sequel project getting cancelled.
With the teams behind two of the best VR games to release in recent years either shut down or pushed out of making VR games entirely, it's a clear sign from Meta that it is no longer invested in making VR games. It's also a sign of Meta stepping away from its Metaverse focus and instead investing in AI.
VR hasn't grown to be the next frontier of gaming in the way that many touted it would for years, as it remains a niche part of tech and the gaming industry, but it's still upsetting to see the teams that were making genuine strides in pushing the medium forward have been pushed out of it. Sanzaru Games' Asgard's Wrath 2 was regarded as one of the best VR games ever made when it arrived in 2023. Arkham Shadow was a new step forward for what combat could look like in VR.
Hopefully, this isn't the end for Camouflaj entirely, and we still see them move on to make their own games, rather than becoming a support studio for the few remaining teams under Meta's Reality Labs division still making VR games.
About the author: David has been writing about videogames, technology, and culture since 2020, with a focus on reporting daily news across multiple publications, including GameDaily.Biz, GameSkinny, and PlayStation Universe before joining Wccftech in 2025. David started contributing as Canada/US reporter for Wccftech's gaming section in 2025. Besides being up-to-date on the industry's movements, he loves interviewing developers, reviewing games, and writing intricate essays about the symbolism and layered meanings to be found in rich narratives as he's done for publications like GamesIndustry.Biz, LostInCult, and others. Outside of games he loves movies, music, theatre, his hometown, and his family, though not necessarily in that order.
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