Meta’s CTO Addresses Speculation on VR’s Viability at the Company
Meta’s Chief Technology Officer has responded to growing concerns regarding the future of virtual reality (VR) within the organization. Recent reports from major news outlets, including Bloomberg and The New York Times, have indicated that Meta is contemplating significant budget cuts—potentially as high as 30%—for its metaverse teams. In light of this, Meta released an official statement clarifying that the company is “shifting some of our investment from Metaverse toward AI glasses and Wearables.” The statement emphasized that this adjustment is not indicative of any larger changes.
### Meta Clarifies Investment Focus
The company has confirmed its decision to reallocate resources from the metaverse to enhance its focus on AI glasses and wearables, following speculation about a potential 30% reduction in the budget for segments of Reality Labs. During an “ask-me-anything” session on Instagram, Andrew Bosworth, Meta’s CTO, was posed with the question, “Is VR dead for Meta now? You seem to have moved on to glasses and AI?” In his response, Bosworth firmly stated that VR is not dead. He expressed that the narrative suggesting a zero-sum situation is misleading, explaining that Meta has the capacity to invest in multiple areas, including VR, glasses, and AI, which they have consistently done over the years.
### Bosworth on Future Investments and Market Dynamics
Bosworth’s remarks align with Meta’s earlier confirmation regarding the shift in funding but aim to counter the notion that a decrease in spending means a complete withdrawal from VR initiatives. He explained that during their annual budget review, teams are asked to evaluate their efficiencies and market conditions. If growth is slower than anticipated, adjustments are made to maintain a sustainable burn rate. Conversely, if the market is expanding faster than expected, Meta aims to capitalize on that growth. This approach reflects a strategic mindset rather than an abandonment of VR.
### Meta’s Future in AR/VR
In a leaked memo, Bosworth outlined that 2025 will be a pivotal year for determining whether Meta’s investments in hardware and the metaverse are visionary or a significant misstep. This funding shift comes after a previous memo from Bosworth highlighted that 2025 is crucial for demonstrating success in driving sales and engagement within the metaverse space. He emphasized that mobile access to Horizon Worlds must succeed for the long-term vision to materialize.
### Sales Performance of Quest and Horizon Worlds
Despite a strong launch of the Quest 3S, which became the best-selling console on Amazon US during the Christmas season, sales of Quest devices have since experienced a decline in the first half of 2025. While there was a brief recovery in Q3, this was attributed to retailers stocking up for the holiday season rather than sustained market demand. Simultaneously, Meta has been actively promoting its Horizon Worlds platform, launching substantial creator competitions aimed at expanding its user base, though progress has been underwhelming.
### Surge in Ray-Ban Meta Glasses Sales
In contrast to the stagnation seen in Quest and Horizon Worlds, sales of Ray-Ban Meta glasses have surged, with figures showing more than a 200% increase compared to the previous year. This surge is indicative of a growing consumer interest in smart glasses. In a recent earnings call, Meta’s partner, EssilorLuxottica, revealed that 2 million units of Ray-Ban Meta glasses had been sold by February, and sales have continued to rise dramatically throughout 2025.
### Meta Delays New Headset Development
Looking ahead, Meta has announced a delay for its ultralight headset, which is now set to launch in the first half of 2027. Despite this delay, the company is reportedly starting work on a gaming-focused Quest 4, which is expected to offer significant upgrades over its predecessor while being priced higher. This demonstrates Meta’s commitment to continuing its development in the VR and gaming sectors.
