Batman: Arkham Shadow Sequel Cancelled as Meta Layoffs Gut Camouflaj

Batman: Arkham Shadow was one of the hit games from 2024, despite being a VR Meta Quest exclusive and not releasing until December. Voice actor Mark Rolston accidentally confirmed a sequel when he leaked he would be set to play Commissioner Gordon. However, not only has the sequel been cancelled, but developer Camouflaj has ended development on all VR games going forward.

As part of Meta's recent layoffs to 10% of its Reality Labs division, which hit Camouflaj with “significant” layoffs, both the sequel to Batman: Arkham Shadow and all future VR games from the developer have been cancelled. While Camouflaj was not shut down entirely like Twisted Pixel Game and Sanzaru Games were due to layoffs, the damage has still been done.

Part of the cancellation of the Arkham Shadow sequel was due to Sanzaru Games working alongside Camouflaj on the project, which ended after Sanzaru was shut down, which contributed to the sequel project being stopped.

Despite some of the best VR games in recent years coming from studios under Meta, the layoffs and closures seem to point out that Meta is no longer investing in VR games, with the company even stepping away from the Metaverse focus they have the last few years to invest in AI. With hopes high after Asgard’s Wrath 2, from Sanzaru Games, and Arkham Shadow really pushing VR games forward, the medium has failed to hit the highs that were expected for several years.

It will be interesting to see the future for Camouflaj. Will they move on to make their own games, or will they simply become a support studio for the few remaining teams in Meta’s Reality Labs working on upcoming titles in VR?

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