tech

January 24, 2026

Meta's Reality Labs cuts sparked fears of a 'VR winter'

Meta's deprioritizing virtual reality in favor of artificial intelligence and Internet-connected smart glasses raised concerns about the future of the industry.

Meta's Reality Labs cuts sparked fears of a 'VR winter'

TL;DR

  • Meta is shifting investment from virtual reality (VR) to artificial intelligence (AI) and smart glasses.
  • The company laid off 10% of its Reality Labs employees, impacting VR-related projects.
  • Meta's past significant investment in VR, including the acquisition of Oculus, is noted.
  • Developers express concern over Meta's reduced focus on VR hardware, potentially leading to a stale market.
  • Meta executives state they are not abandoning VR but are right-sizing investments due to slower-than-hoped growth.
  • Market research indicates a strong growth in AI glasses while VR/mixed-reality headset shipments are expected to decrease.
  • The VR headset market is described as niche, with limited broad consumer appeal.
  • Some developers see potential in upcoming VR hardware from companies like Valve, Samsung, and Apple.
  • Apple's Vision Pro has found some traction in the enterprise market, despite slow consumer demand.
  • Meta is ending its Horizon managed services program for businesses, signaling further VR cutbacks.

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