Meta’s Metaverse Crisis 📉: Will It Crash? 💥

Tech & Science

Meta may reduce its metaverse budget by as much as 30 percent next year, according to a Bloomberg report. While the exact cuts remain unfinalized, sources indicate they would affect the unit responsible for Meta’s Quest virtual reality headsets, alongside its social platform, Horizon Worlds. Following a shift in focus towards developing AI superintelligence, evidenced by recent high-profile hires including former Apple UI designer Alan Dyeto lead the design of “hardware, software and AI integration for its interfaces,” CEO Mark Zuckerberg asked Meta executives to target 10% budget reductions across the board as part of the annual planning process. However, the metaverse division, operating within Meta’s Reality Labs, was directed to implement even deeper cuts, citing a lack of industry-wide competition surrounding the technology compared to initial expectations. Bloomberg reports that Reality Labs has incurred over $70 billion in losses since early 2021, and Meta’s most recent earnings report revealed continued cash outflows from the division. As a potential consequence of these cuts, Meta could begin laying off metaverse staff as early as January.