Meta has announced a significant shift in focus for its virtual world platform, Horizon Worlds. The tech giant plans to transition Horizon Worlds towards becoming "almost exclusively mobile," explicitly separating it from the Quest VR platform. This move comes amid losses of nearly $80 billion incurred by Meta's Reality Labs division for VR and smart glasses development since 2020, indicating a reevaluation of Meta's virtual reality aspirations.
Last month, Meta reportedly reduced its workforce within the Reality Labs division by approximately 1,500 employees, representing about 10% of the unit's staff, and shut down several VR game studios. Additionally, the VR fitness app Supernatural, which Meta acquired in 2023, will no longer produce new content but will move into "maintenance mode."
Originally launched as a virtual reality platform in 2021, Horizon Worlds later expanded to the web and mobile platforms. In a blog post on Thursday, Meta revealed its intention to capitalize on a larger market by adopting a mobile-first approach for Horizon Worlds, positioning it to challenge popular platforms such as Roblox and Fortnite.
Samantha Ryan, Reality Labs' VP of content, stated, "We're in a strong position to deliver synchronous social games at scale, thanks to our unique ability to connect those games with billions of people on the world's biggest social networks." She added that while Meta remains committed to virtual reality hardware, its primary focus now lies with Horizon Worlds and similar initiatives.
Notably, Meta is still participating in technology events such as TechCrunch Founder Summit 2026, where over 1,000 founders and investors gather for a day centered on growth strategies.
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In a recent development, Meta, formerly Facebook, has announced a shift in its strategy from virtual reality (VR) headsets to artificial intelligence (AI) wearables. This change was revealed by Meta's CEO Mark Zuckerberg during the company's latest earnings call.
Zuckerberg stated that sales of Meta's AI glasses have tripled within the last year, calling them "some of the fastest-growing consumer electronics in history." He also emphasized that Meta is now focused on developing AI wearables and advancing its own AI models, effectively abandoning its metaverse ambitions.
Meta's new direction could signal a significant shift in the tech industry, with a potential emphasis on AI technology over virtual reality experiences. Register for TechCrunch Founder Summit 2026 to gain insights from industry leaders navigating this rapidly evolving landscape.
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