Meta Maintains That Virtual Reality Still Has a Future
Meta Platforms has pushed back against suggestions that virtual reality is losing relevance, insisting that the technology remains a central part of the company’s long-term strategy. The position comes after reports indicated that the business was exploring significant reductions within its Reality Labs division, which oversees virtual reality and metaverse development. Despite heavy financial losses over recent years and a high-profile rebrand from Facebook to Meta, the company has maintained that its ambitions in immersive computing have not been abandoned.
The firm invested tens of billions of dollars in virtual reality initiatives, a period that weighed heavily on its financial performance before a recovery driven by rapid advances in artificial intelligence. While that shift towards AI has improved investor confidence, it has also fuelled speculation that Meta may be stepping back from VR in favour of more immediately profitable technologies. Company leadership has rejected that interpretation, arguing that Meta is large enough to pursue multiple major bets at the same time.
Speaking in his capacity as chief technology officer, Andrew Bosworth addressed what he described as a recurring narrative that frames the company’s investments as a zero-sum choice. According to Bosworth, Meta continues to allocate resources across virtual reality, augmented reality glasses and artificial intelligence, and has done so consistently for years. He explained that the company’s annual budgeting process focuses on efficiency rather than abandonment, with each team expected to assess whether it can deliver results more effectively using improved tools and AI-driven workflows.
Bosworth outlined that internal decisions are guided by market realities. If a market develops more slowly than anticipated, spending is adjusted to reduce losses. If adoption accelerates, the company seeks to increase investment to avoid falling behind competitors. He characterised this approach as standard business practice rather than a signal that Meta has lost faith in immersive technologies.
Internally, the tone has been more urgent. Bosworth informed Reality Labs employees that the year 2025 would be decisive in determining how their work is ultimately judged. He described the period as the most critical of his tenure at the division, emphasising the need to improve sales, user retention and engagement across all products, with particular focus on mixed reality. At the time, Meta was still using the term mixed reality to encompass virtual reality, a naming convention it has since moved away from.
Bosworth also highlighted the importance of Horizon Worlds expanding successfully onto mobile platforms, describing it as essential to the company’s long-term plans. That expansion has so far failed to gain significant traction. Headset sales have reportedly declined, and performance indicators heading into the holiday season have been weak. In contrast, Meta’s augmented reality smart glasses have shown stronger consumer appeal, attracting interest from shoppers and generating more positive momentum.
The broader public perception of Meta’s metaverse ambitions has also shifted. Chief executive Mark Zuckerberg previously became closely associated with virtual worlds, often appearing in demonstrations that drew criticism for their limited realism and social engagement. Some commentators have since portrayed the metaverse as an empty or unconvincing digital space. Over the past year, however, Zuckerberg has found greater visibility and influence outside that context, benefiting from developments in AI and changes in his public positioning.
Despite mixed results and ongoing scepticism, Meta’s leadership continues to argue that virtual reality remains a long-term project rather than a failed experiment. While the pace of adoption has been slower than originally hoped, the company maintains that immersive technologies still have a role to play alongside artificial intelligence and wearable devices, even as internal teams face increased pressure to demonstrate tangible progress.
