Meta has encountered a myriad of obstacles over the years, yet the most recent layoffs have marked a turning point for numerous individuals. Between 2019 and 2024, Meta’s app store stood out as a premier platform, integrating user-friendly policies with robust developer partnerships. However, discontent among developers escalated following the launch of App Lab in 2024. The company’s evolving objectives and pursuit of trends have led to substantial upheaval, ultimately resulting in the shutdown of the majority of first-party game development studios on January 13, 2026.
The layoffs have impacted not just Meta’s in-house teams but also external developers. Cloudhead Games and Skydance Games have encountered considerable obstacles, with the latter halting a Harry Potter VR project. Analysts suggest that Meta’s strategies have harmed the VR gaming sector, which previously viewed Meta as a beacon of hope.
Meta seems to be transitioning away from first-party game development towards a marketplace model akin to Valve’s strategy. The organization is also focusing on hardware advancements, intending to boost its smart glasses production. This strategic shift has left numerous developers pondering their prospects with Meta, given the diminishing funding for both AAA and indie projects.
The VR gaming landscape is experiencing a downturn, with fewer widely recognized titles anticipated. Developers are now required to navigate a more unpredictable terrain, meticulously prioritizing their investments and platform selections. Despite these hurdles, the VR community continues to engage with beloved games like Walkabout Mini Golf while looking forward to the subsequent wave of innovation and financial support.