Meta is set to slash its spending on the metaverse by as much as 30% in a bid to cut costs. The decision comes after years of investment in virtual reality technology, which has failed to gain widespread traction among consumers.
The move was revealed during Meta's annual budget planning for 2026, where company insiders discussed significant cuts to the metaverse team. This is reportedly due to the technology not living up to expectations, with many investors viewing it as a drain on resources.
Industry experts point out that even though consumers are still buying virtual reality headsets and playing traditional games, they're not willing to spend substantial amounts of money in virtual worlds like Meta Horizon Worlds. The idea of spending hours browsing through fake shopping malls or stores is seen as too gimmicky by many.
As a result, Meta has hemorrhaged billions of dollars since 2021, with the Reality Labs division losing over $70 billion during that time. Mark Zuckerberg, the company's CEO, has largely avoided talking about the metaverse in public and earnings calls.
So, where will Meta's spending money go instead? The answer is AI and hardware. According to reports, the company is focusing on further developing large AI models and chatbots, as well as hardware products that integrate with these technologies, like Ray-Ban smart display glasses.
It seems that even Mark Zuckerberg has come to realize that the metaverse idea needs time – possibly decades – to become a reality. For now, it's going to have to take a backseat to more pressing priorities for Meta.
The move was revealed during Meta's annual budget planning for 2026, where company insiders discussed significant cuts to the metaverse team. This is reportedly due to the technology not living up to expectations, with many investors viewing it as a drain on resources.
Industry experts point out that even though consumers are still buying virtual reality headsets and playing traditional games, they're not willing to spend substantial amounts of money in virtual worlds like Meta Horizon Worlds. The idea of spending hours browsing through fake shopping malls or stores is seen as too gimmicky by many.
As a result, Meta has hemorrhaged billions of dollars since 2021, with the Reality Labs division losing over $70 billion during that time. Mark Zuckerberg, the company's CEO, has largely avoided talking about the metaverse in public and earnings calls.
So, where will Meta's spending money go instead? The answer is AI and hardware. According to reports, the company is focusing on further developing large AI models and chatbots, as well as hardware products that integrate with these technologies, like Ray-Ban smart display glasses.
It seems that even Mark Zuckerberg has come to realize that the metaverse idea needs time – possibly decades – to become a reality. For now, it's going to have to take a backseat to more pressing priorities for Meta.
Like, I'm not surprised at all about this news 
... The way they've been hyping up the metaverse since 2021 has just been so cringe 
... Anyone remember that hype around Horizon Worlds? 
It's basically gone now. And the numbers are crazy - $70 billion hemorrhaged in Reality Labs alone 
That's a lot of cash for something that hasn't delivered on its promises.
... The whole "spending hours browsing through fake shopping malls" thing? 
Not exactly the most convincing pitch. But hey, at least Meta's being realistic now 
...
Developing AI and hardware products, apparently 
... Ray-Ban smart display glasses? 
That's actually kinda cool 
... Maybe they'll finally make a dent in the market with that tech. Decades to become a reality? 
I guess that's one way to look at it 
... Time will tell, I s'pose 
. 30% cut is huge tho. seems like they're finally realizing it's not as hyped as everyone thought 
. not surprised though, been saying this since 2021 
Nowadays, it seems like nobody has that much time or interest in spending hours in virtual worlds. And honestly, I don't blame 'em. There are just so many other cool things you can do with your time.
