A New Batman: Arkham Game Has Reportedly Been Canceled

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Recent reports indicate that a sequel to Batman: Arkham Shadow was being developed but has been canceled. This news comes shortly after Meta’s Reality Labs underwent significant layoffs, leading to the closure of three VR development studios, one of which – Sanzaru Games – was reportedly behind the Batman: Arkham Shadow sequel.

Released in October 2024 exclusively for the Meta Quest 3 and 3S, Batman: Arkham Shadow is the second VR installment and tenth game in the Batman: Arkham series. Developed by Camouflaj, the studio behind Marvel’s Iron Man VR, the game was highly praised by critics for successfully bringing the atmosphere of the classic Rocksteady Batman: Arkham games to virtual reality. Batman: Arkham Shadow has earned multiple awards, including a Game Award, a New York Game Award, and a D.I.C.E. Award, and currently boasts a perfect 100% critics’ recommendation score on OpenCritic.

Batman: Arkham Shadow Sequel Has Reportedly Been Canceled

According to a New York Times report on January 12th, Meta is planning to cut 10-15% of its staff in its Reality Labs division, moving its focus away from virtual reality and towards augmented reality and artificial intelligence. The following day, Meta confirmed it had closed three studios within Reality Labs: Sanzaru Games, Armature, and Twisted Pixel. Sanzaru is known for creating the popular Asgard’s Wrath and its sequel, the highest-rated game on the Meta Quest. Armature developed the well-received Resident Evil 4 for Meta Quest 2, and Twisted Pixel recently released Marvel’s Deadpool VR. However, new information suggests these layoffs may be even more extensive than initially reported.

According to former employees who spoke to Aftermath, Sanzaru Games was developing a sequel to Batman: Arkham Shadow before the studio closed, likely halting the game’s progress. Aftermath also reported that Camouflaj, the original developer of Batman: Arkham Shadow, was significantly impacted by Meta’s layoffs, leaving only a small team to work on user experience for future Meta devices.

So, I was reading UploadVR today, and they basically confirmed what Aftermath was saying – a sequel to Batman: Arkham Shadow was actually in development at Sanzaru Games. It’s super disappointing, but apparently it’s been completely canceled now that the studio shut down. The article also said Camouflaj got hit really hard by Meta’s layoffs. From what UploadVR’s sources are saying, only three VR studios are still actively working at Meta: Beat Games, BigBox, and Ouro Interactive. It’s a tough time for VR development right now, honestly.

Talk about a potential sequel to Batman: Arkham Shadow began in September 2025 when Mark Rolston, who voiced Commissioner Gordon, hinted at a new project during Fan Expo Chicago. Because voice actors are typically involved once a game is well into development, this suggests that the rumored sequel was likely in active production before it was recently cancelled.

Kotaku confirmed with Meta that Camouflaj was part of the recent layoffs, but the studio will remain open. Meta also provided a broader statement about cuts happening within its Reality Labs division, which Kotaku included in their reporting.

Last month, we announced we were moving some of our funding away from the Metaverse and towards Wearables. This action is a continuation of that plan, and we’ll use the money saved to help our Wearables business grow this year.

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2026-01-15 23:38