Meta is set to shut down Horizon Worlds, its virtual reality social network that was central to its metaverse ambitions, with the app being removed from the Quest store by the end of March and fully discontinued on VR by June 15. This decision follows recent layoffs in the Reality Labs division, which has been struggling with user engagement and significant financial losses, reporting an operating loss of $6.02 billion in Q4 2022.
The shift reflects Meta’s broader strategy to pivot away from costly VR investments and focus on artificial intelligence. Horizon Worlds has failed to attract a substantial user base, peaking at only a few hundred thousand active users monthly, which raises concerns about the viability of the metaverse as a profitable venture. The transition to a mobile-only platform aims to streamline operations and potentially tap into a larger audience.
For market professionals, this development underscores the challenges facing tech companies in the VR space and highlights Meta’s strategic redirection. For a deeper dive into the implications of this shift, I recommend exploring the full article.
Source: cnbc.com