The metaverse, as initially envisioned by Meta, appears to be in a state of flux. What began as a bold bet on virtual reality as the future of social interaction is now undergoing a significant recalibration. Just days after announcing plans to discontinue access to its Horizon Worlds virtual environment on Meta Quest headsets, the company reversed course, a move prompted by strong pushback from its user base. This reversal highlights the complex relationship Meta has with its metaverse ambitions – a desire to innovate while acknowledging the current limitations of the technology and the preferences of its community.
The initial decision to sunset Horizon Worlds for VR sparked disappointment among dedicated users, who voiced their concerns online. Responding to the outcry, Meta CTO Andrew “Boz” Bosworth announced via an Instagram AMA that the company would maintain VR access for existing Horizon Worlds games. “We have decided, just today in fact, we will keep Horizon Worlds working in VR for existing games,” Bosworth stated, adding that modern VR games aren’t currently planned, as “the creator and consumer energy were already big on mobile.” This pivot underscores a broader shift within Meta, one that prioritizes accessibility and user engagement over a rigid adherence to a singular vision.
The story of Meta’s metaverse is, in many ways, a cautionary tale of hype versus reality. Since rebranding from Facebook in 2021, the company, then led by Mark Zuckerberg, invested heavily in virtual and augmented reality, pouring billions into its Reality Labs division. As of 2021, Reality Labs had burned through approximately $73 billion, according to Seeking Alpha, with the expectation that the Quest headsets would eventually become profitable through a thriving virtual economy. That economy, however, has yet to materialize.
A Shift to Mobile and Beyond
Meta’s strategic shift isn’t a complete abandonment of the metaverse concept, but rather a re-evaluation of its delivery method. The company has openly acknowledged the stronger traction it’s seeing on mobile platforms. In a recent interview with Alex Heath, Bosworth explained that social games like Super Strike, a multiplayer shooter, are gaining more momentum on mobile than in VR. This aligns with a broader trend in the gaming industry, where mobile gaming continues to dominate in terms of revenue and user base.
This shift has been accompanied by significant restructuring within Meta. In January, the company announced a reduction of approximately 1,500 employees, primarily within the Reality Labs division, as reported by Gizmodo. The layoffs impacted several game studios acquired by Meta in recent years, including those responsible for VR titles like Asgard’s Wrath II and Deadpool VR. Support for popular apps like the Supernatural VR exercise game was also discontinued. These cuts signal a more focused approach, prioritizing projects with clearer paths to profitability.
The Reality Labs Investment
Beyond Horizon Worlds, Meta’s broader “extended reality” (XR) ambitions are channeled through Reality Labs, which also encompasses the development of augmented reality (AR) technologies like the Meta Ray-Ban Display smart glasses. While the Ray-Ban glasses represent a step towards more integrated AR experiences, they haven’t yet achieved mainstream adoption. The company continues to explore new technologies aimed at making AR and XR headsets less isolating, as Bosworth indicated in his Instagram AMA.
The challenges facing Meta are reflected in recent sales figures. Headset sales experienced a “tremendous” decline from 2024 into 2025, according to market research firm IDC, which reported a 16% decrease in Meta’s headset shipments last year, as noted by The Register. This downturn coincides with increased competition in the VR/AR space, particularly from Apple’s Vision Pro, though the Vision Pro’s high price point limits its accessibility.
Horizon Worlds: A Saved, But Evolving, Project
While the reversal regarding Horizon Worlds provides a temporary reprieve for its dedicated users, Meta’s plans for the platform remain limited. The company isn’t currently developing new VR games for Horizon Worlds, focusing instead on leveraging the existing user-generated content and exploring mobile integration. This suggests that Horizon Worlds will likely evolve into a more niche experience, catering to a dedicated community rather than becoming a mainstream social platform.
Bosworth acknowledged that Horizon Worlds “was never going to be popular” in its initial form and that even shortly after its 2022 launch, it fell short of projected monthly active users, according to the Wall Street Journal. The relatively affordable Meta Quest 3S headsets, while offering a compelling VR experience, haven’t been enough to drive widespread adoption. Perhaps, the company is realizing, VR is best positioned as a specialized technology for enthusiasts rather than a replacement for traditional social interaction.
Looking ahead, Meta’s metaverse strategy appears to be diversifying. The company is increasingly focused on integrating AI into its products and services, and exploring the potential of AR glasses to deliver more seamless and contextual experiences. The next major update from Meta regarding its XR strategy is expected during its Q2 2025 earnings call, where investors will be closely watching for further details on the company’s roadmap.
What remains clear is that the metaverse, in its original conception, is undergoing a significant transformation. Meta’s journey serves as a reminder that even the most ambitious technological visions require adaptability, user feedback, and a realistic assessment of market conditions.
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