Meta layoffs hit Seattle-area VR studio Camouflaj, developer behind ‘Batman’ game

A series of layoffs across Meta’s virtual reality division has affected Bellevue, Wash.-based studio Camouflaj (Republique, Batman: Arkham Shadow).

This week opened with reports that Meta had shuttered several game developers in its studio network, including Twisted Pixel (Marvel’s Deadpool VR) and Armature (Resident Evil 4 VR), both of which were headquartered in Texas.

Rumors subsequently entered circulation on Wednesday that the same wave of layoffs had affected Camouflaj. Several outlets, including Aftermath and The Verge, confirmed Thursday that while Camouflaj is still in operation, it’s been reduced to a “handful of employees.” The studio has around 30 employees, according to LinkedIn data.

In addition, a planned sequel to 2024’s Batman: Arkham Shadow has been cancelled, and the project’s developer Sanzaru has been shut down.

GeekWire has reached out to Meta and Camouflaj for further comment.

This wave of dismissals is reportedly a downstream effect from a 10% headcount reduction at Meta’s Reality Labs division. This follows a decision to shift Meta’s efforts away from VR and the Metaverse and towards AI research and wearables.

Camouflaj began as an independent studio led by Microsoft veteran Ryan Payton, which made headlines in 2012 for using crowdfunding to start work on its debut project. Republique, an episodic stealth game set in a fictional totalitarian state, was initially an exclusive for iOS devices. It was later released for PC, Mac, Android, and PlayStation 4.

Camouflaj later retooled Republique as a virtual reality game, which marked a shift by the company towards developing VR projects. Its next game, made with Sony Interactive Entertainment and Marvel Studios, was 2020’s Iron Man VR for PlayStation and Meta Quest. Camouflaj was then acquired by Oculus in 2022.

Its latest game, Arkham Shadow, is an official entry in the long-running “Arkham series” of Batman video games. Set early in Batman’s crime-fighting career, before many of his trademark villains had assumed their costumed identities, Shadow pits a young Batman against a villain known as the Rat King.

It’s worth noting that while Meta was not the only significant player in the virtual reality sector, it did command a large part of the overall market due to its standalone headsets. If Meta plans to back out of VR to any further degree, it could potentially pose an existential threat to the format. Valve’s recent announcement of a new VR headset does offer some hope to VR fans, however.