Link: Meta's decision to deprioritize VR in favor of AI and internet-connected glasses has chilled the VR industry, leading to concerns about its future (Jonathan Vanian/CNBC)

Meta's shift away from virtual reality (VR) towards artificial intelligence (AI) and Internet-connected smart glasses indicates a significant realignment in strategy, especially following a 10% reduction in staff at its Reality Labs, which focuses on VR.

This redirection largely affects VR initiatives, such as the development of Quest VR headsets, with about 1,000 jobs being cut. This situation raises concerns about the future of VR within the company and the industry.

Meta's reduced focus on VR marks a notable pivot, given its historical influence on the VR industry since its acquisition of Oculus in 2014. The company, renamed Meta, originally emphasized its commitment to creating digital worlds known as the metaverse.

Despite these changes, Meta's technology chief Andrew Bosworth conveyed that the company still values the VR sector, adjusting investment sizes based on the slower-than-expected growth.

However, the market dynamics are shifting, with research suggesting a decline in interest for VR headsets, viewed as niche and unwieldy by mainstream consumers, while AI-powered smart glasses see substantial growth.

Internally, Meta continues to possess the largest team dedicated to VR development, suggesting a scaled but ongoing commitment to the technology. Despite the broader industry’s challenges and Meta’s strategic realignment, VR still has potential pathways, especially in enterprise solutions where it demonstrates strong return on investment possibilities. #

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