tech
January 19, 2026
Well, there goes the metaverse!
The metaverse is on its last legs as VR is eclipsed by AI. But that's not the only thing that went wrong for Meta's VR ambitions.
TL;DR
- Meta is reportedly laying off approximately 1,500 employees from its Reality Labs division and closing several VR game studios.
- This decision marks a significant reversal from Meta's previous commitment to the metaverse, rebranded in 2021.
- The company is shifting its focus to artificial intelligence and other hardware, like its Ray-Ban smart glasses.
- The metaverse division reportedly lost money excessively and never turned a profit, with Meta having invested $73 billion into Reality Labs.
- Issues such as poor product execution, middling consumer demand, and safety concerns in virtual environments contributed to the metaverse's struggles.
- Meta's smart glasses, particularly the Ray-Ban line, are experiencing increased consumer interest and outselling traditional models in some retail stores.