Meta’s CTO Addresses Concerns Over VR’s Future
In response to recent speculation regarding the status of virtual reality (VR) at Meta, the company’s Chief Technology Officer has clarified the situation. Major news outlets, including Bloomberg and The New York Times, reported that Meta is contemplating budget cuts of up to 30% for its metaverse teams. In light of this, Meta released a statement affirming its strategy to “shift some of our investment from Metaverse toward AI glasses and Wearables.” The company emphasized that while it is reallocating resources, it does not anticipate any sweeping changes beyond this adjustment.
Meta Affirms Investment Shift Towards AI Glasses
Following the news of potential budget reductions, Meta has confirmed its intention to redirect part of its funding from the metaverse to focus on AI glasses and wearables. This announcement came amidst discussions of a possible 30% reduction in the budget for certain areas within Reality Labs. During an interactive Q&A session on Instagram, Andrew Bosworth, Meta’s CTO, addressed a question about whether VR is “dead” for the company. He firmly stated, “No, VR is not dead,” highlighting that the company is actively investing in both VR and new technologies, such as glasses and AI.
Bosworth elaborated on the company’s budget assessment process, explaining that Meta regularly evaluates team performance and market dynamics. He noted that if growth in a segment is slower than anticipated, adjustments are made to ensure efficient spending. Conversely, if a market shows faster growth, the company aims to capitalize on that opportunity. His remarks indicate that while adjustments are being made, Meta remains committed to various technological avenues, including VR.
Meta CTO: 2025 Will Be Pivotal for AR/VR Initiatives
In a recently leaked memo, Andrew Bosworth indicated that the year 2025 will be critical in determining the success or failure of Meta’s hardware and metaverse initiatives. This sentiment follows the company’s recent shift in funding from Horizon Worlds and VR towards smart glasses. Bosworth previously described 2025 as a pivotal year, urging staff to enhance sales and engagement metrics, especially within mixed reality (MR) projects. He stressed the importance of the mobile version of Horizon Worlds in achieving long-term objectives.
Despite a promising launch of the Quest 3S in Q4 2024, which became the top-selling console on Amazon US during the holiday season, sales for Quest devices have shown a decline in the first half of 2025. This trend suggests that while the Quest 3S saw initial success, it has not maintained year-round appeal. However, Meta’s Q3 sales rebound was attributed to retailers preparing for the upcoming holiday season rather than sustained consumer interest.
Ray-Ban Meta Glasses Sales Surge
While Meta’s VR and Horizon Worlds projects appear to be stagnating, the company’s Ray-Ban Meta glasses have experienced remarkable growth, with sales more than tripling compared to the previous year. This surge highlights a significant public and investor interest in smart glasses. During its Q4 2024 earnings call, Meta’s partner EssilorLuxottica reported that sales of the Ray-Ban Meta glasses had reached 2 million units, with a further increase noted in Q2 2025.
Meta Delays Ultralight Headset, Plans for Quest 4
Recent leaks reveal that Meta is postponing the launch of its ultralight headset, which features a tethered compute puck, until the first half of 2027. Despite this delay, the company is simultaneously initiating development on a gaming-focused Quest 4, which promises to be a substantial upgrade over the Quest 3, though at a higher price point. These developments indicate that while some projects face setbacks, Meta continues to innovate in the gaming and VR space.
