Meta discontinues Horizon Worlds VR access as it accelerates shift from metaverse to AI

3 Sources

Share

Meta is pulling Horizon Worlds from Quest VR headsets by June 15, ending virtual reality access to its flagship metaverse product. The move follows $80 billion in Reality Labs losses and signals a decisive strategic pivot to AI, with resources redirected toward AI-powered products like Ray-Ban Meta glasses instead of immersive virtual worlds.

Meta Abandons VR Access for Flagship Metaverse Product

Meta announced that Horizon Worlds, the social virtual reality platform that once embodied Mark Zuckerberg's vision of the metaverse, will no longer be accessible on Quest VR headsets starting June 15

1

. The app will disappear from the Quest store on March 31, and users who have already downloaded it will lose virtual reality access by mid-June

2

. The platform will survive only as a mobile-only experience, repositioned to compete with gaming platforms like Roblox and Fortnite rather than serve as an immersive destination for virtual worlds

3

.

Source: TechSpot

Source: TechSpot

Consumers will no longer be able to build, publish, or update VR worlds after June 15, though access to Horizon Worlds will continue through the Meta Horizon mobile app

1

. Meta also confirmed that Hyperscape Capture, a beta feature allowing Quest headset owners to capture and share 3D scans of real-life locations, will be removed by March 24

2

.

Source: Bloomberg

Source: Bloomberg

Reality Labs Division Faces Massive Losses and Layoffs

The decision comes as the Reality Labs division continues to bleed money, posting its worst quarter ever with a $6.02 billion operating loss in Q4, representing a 21% year-over-year increase

2

. Since 2020, Reality Labs has accumulated nearly $80 billion in losses, raising questions about the viability of Meta's metaverse strategy

3

. Horizon Worlds itself never gained meaningful traction, attracting only a few hundred thousand monthly active users despite consuming billions of dollars in development costs

3

.

In January, Meta began eliminating approximately 1,500 jobs from Reality Labs, representing about 10% of the division's total staff

2

. The vast majority of those facing layoffs were working in the metaverse unit on VR headsets and virtual social networks

2

. The company also shut down several VR game and content studios, and quietly wound down Supernatural, a fitness app Meta acquired for $400 million in 2021

3

.

Source: Quartz

Source: Quartz

Strategic Pivot to AI Reshapes Company Priorities

Chief Technology Officer Andrew Bosworth, who leads Reality Labs, told staff that Meta would focus on mobile phone experiences instead of fully immersive virtual worlds accessed via headsets

1

. This resource reallocation reflects a broader investment shift within the company. Reports from December indicated Zuckerberg was planning to slash Reality Labs' budget by 30% as Meta redirected resources toward AI glasses and wearable products

2

.

The metaverse pivot has been quietly unwound since ChatGPT's arrival in late 2022 changed the competitive landscape

3

. Meta's AI research division, led by scientist Yann LeCun, provided a credible foundation for the company to build AI-powered products

3

. As ad revenue improved and the stock recovered, Meta's market value nearly tripled from its 2022 lows by 2024

3

.

Ray-Ban Meta Glasses Emerge as Hardware Success

While the metaverse strategy falters, Meta's Ray-Ban Meta glasses have become a rare hardware success story. Zuckerberg recently stated that sales of the smart glasses tripled in the past year

3

. Resources at Reality Labs have been diverted from VR gaming to these wearable products that advance Zuckerberg's AI ambitions

1

.

Meta maintains it has not abandoned VR entirely, with Reality Labs VP of Content Samantha Ryan stating in February that the company is "doubling down on the VR developer ecosystem" while transitioning Horizon Worlds to mobile

3

. New Quest headsets remain in development, though the company's emphasis has clearly shifted

3

. The closure of Horizon Worlds on VR headsets marks more than a product decision—it signals the end of the vision that prompted Facebook to rebrand itself as Meta in 2021, when Zuckerberg described the metaverse as "the next frontier"

3

.

Today's Top Stories

TheOutpost.ai

Your Daily Dose of Curated AI News

Don’t drown in AI news. We cut through the noise - filtering, ranking and summarizing the most important AI news, breakthroughs and research daily. Spend less time searching for the latest in AI and get straight to action.

© 2026 Triveous Technologies Private Limited
Instagram logo
LinkedIn logo