Meta’s VR metaverse is ditching VR

Meta appears to be shifting its metaverse strategy, potentially prioritizing augmented reality (AR) and third-party VR content over internally developed VR games. This shift is indicated by layoffs in Reality Labs and the cancellation of certain projects. While Meta continues to invest in VR, there's an increased focus on AR applications, such as the potential integration of facial recognition into Ray-Ban smart glasses.

The Meta Quest Pro, designed for professional use and initially priced at $1,500, was discontinued in January 2025 due to challenges in establishing VR as a viable platform for work. Its short lifespan, even after a price reduction, highlights the difficulties Meta faced in making VR a standard tool for productivity. This led to a strategic recalibration towards other areas like AR.

Meta is shifting its VR content strategy to focus on supporting third-party VR experiences rather than creating first-party flagship titles. While Meta CTO Andrew Bosworth states that the company is still investing heavily in VR content, the closure of several acquired VR game studios suggests a move towards external partnerships. This indicates a preference for curating a diverse range of VR experiences rather than developing exclusive games.

Meta's consideration of adding facial recognition to Ray-Ban smart glasses raises significant privacy concerns. The integration of such technology could lead to potential misuse of personal data and surveillance issues. This has sparked public debate about the ethical implications of AR and the need for robust privacy safeguards.

The 10% staff reduction in Reality Labs is scheduled for January 2026, and the full impact on Meta's AR and VR projects is expected to be seen then. This cutback signals a tightening of budgets and a potential slowdown in AR product development. It raises questions about Meta's long-term vision for its AR and VR projects.