To say DC has been having a difficult time trying to take over the video game world would be an understatement. The disastrous release of Suicide Squad: Kill the Justice League cost Warner $200 million, Monolith's Wonder Woman was canceled amidst the studio's closure, Gotham Knights was released to mixed reception, and the list of examples can't really go on because DC hasn't done much with its characters in this form of media as of late. But amidst all the chaos, there was one saving grace in the form of Batman: Arkham Shadow.
The Caped Crusader's latest adventure in the video game world was nothing short of mesmerizing. The free-flow combat that made the franchise so iconic was perfectly reinvented for VR headsets. Furthermore, the attention to detail that Rocksteady once had was perfectly recreated by developer Camouflaj, thanks to the game's numerous Easter Eggs and secrets.
But the very best part? Batman: Arkham Shadow had an amazing story with a twist even the most hardcore of fans couldn't see coming. The game was so successful that Camouflaj started working on a sequel. Unfortunately, it seems like the anticipated title won't get to see the light of day.
Layoffs at Camouflaj reportedly shut down the Batman: Arkham Shadow sequel
Meta recently laid off 10% of staff from its Reality Labs division, which develops virtual and augmented reality experiences for devices such as Meta Quest 3. This is part of an effort to shift the company's focus from the VR Metaverse to AI glasses. Unfortunately, this decision brought the complete closure of video game studios such as Sanzaru Games, Armature Studio, and Twisted Pixel, the latter of which had just shipped a Deadpool VR game. Much to fans' surprise, Batman: Arkham Shadow developer Camouflaj was also hit by the layoffs.
As reported by The Batman Arkham Channel, Camouflaj studio heads were let go, and any games in development were canceled, which includes an Arkham Shadow follow-up. The voice behind Batman himself, Roger Craig Smith, seemingly confirmed the news with the following statement:
As ever with these things…oh, what could have been.
— Roger Craig Smith (@RogerCraigSmith) January 16, 2026
My best to all the folks affected by the recent Meta situation.
Brutal.
Batman: Arkham Shadow was not only released to critical success, but it was also enjoyed by over one million players, reportedly surpassing Meta's internal expectations. To top things off, it even won the best VR/AR game category at the 2025 Game Awards. With that in mind, it's heart-crushing to see how Camouflaj did everything right, yet they didn't get to develop a bigger, better sequel or even stay together.
Lately, concept art and videos of canceled Batman video games have made their way online. It started with a glimpse at WB Games Montréal's Damian Wayne project, closely followed by a set of videos from an unreleased title set in Christopher Nolan's The Dark Knight universe. With a bit of luck, one day we'll get to see the work that Camouflaj was doing on the Batman: Arkham Shadow sequel. In the meantime, let's hope that most developers land on their feet and get to work on other exciting games.
As for the Caped Crusader, he'll be back this year in a big way courtesy of LEGO Batman: Legacy of the Dark Knight. Additionally, rumors suggest that Rocksteady will return to its roots and develop a single-player Batman game, although it remains unclear whether this will take place within the Arkhamverse or not. But as long as the upcoming title is as immersive as Batman: Arkham Shadow was, then it is guaranteed to become a memorable adventure.