Meta's Future in VR Hangs in the Balance, Says CTO Amid Heavy Losses
Business/Tech

Meta's Future in VR Hangs in the Balance, Says CTO Amid Heavy Losses

Meta's Reality Labs faces critical challenges as the company grapples with significant financial losses in its virtual reality division, prompting concerns about its future.

Meta is potentially reaching a turning point in its venture into virtual reality, as outlined by Chief Technology Officer Andrew “Boz” Bosworth in an internal memo.

In the memo, Bosworth emphasized the need for Meta’s Reality Labs division to show substantial progress in 2025; otherwise, the entire undertaking may be regarded as a “legendary misadventure.”

“We need to drive sales, retention, and engagement across the board but especially in MR [mixed reality],” Bosworth mentioned. Translation: We must boost sales, keep users engaged, particularly in mixed reality.

The division has faced staggering financial losses, amounting to nearly $50 billion from 2020 to 2024. Despite this, some promising signs have emerged, including a 40% increase in sales in 2024. However, Bosworth noted that this success is insufficient for long-term sustainability.

As Reality Labs prepares for new product launches, including several AI-powered wearables, the future remains uncertain. If 2025 does not yield favorable results, a challenging 2026 could follow.

This acknowledgment of potential failure from a top executive is unusual for Meta, indicating a significant recognition of the hurdles ahead as VR continues to evolve.

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