Meta's metaverse leaves virtual reality | TechCrunch

TechCrunch

by Aisha Malik

February 20, 2026

AI-Generated Deep Dive Summary

Meta has announced a significant strategic shift in its Horizon Worlds platform, moving away from the metaverse concept and focusing almost exclusively on mobile platforms. This decision marks a departure from virtual reality (VR) as the company reorients its efforts toward AI-driven wearables and advancements in artificial intelligence. The move comes after substantial financial losses—nearly $80 billion since 2020 in Meta's Reality Labs division, which develops VR and smart glasses. The pivot is evident in several recent actions, including layoffs of approximately 1,500 employees from Reality Labs (about 10% of the workforce) and the closure of several VR game studios. Additionally, the acquisition of the VR fitness app Supernatural has been scaled back to a maintenance mode, with no new content planned. These changes underscore Meta's strategic realignment away from immersive virtual environments toward more practical applications in AI. Horizon Worlds initially launched as a VR platform in 2021 but has since expanded to web and mobile versions. By prioritizing mobile, the platform aims to compete with popular platforms like Roblox and Fortnite, leveraging Meta's extensive social network reach. Samantha Ryan, Reality Labs' VP of content, emphasized that this shift positions Horizon Worlds to tap into a broader market by focusing on synchronous social games. Despite this strategic pivot, Meta remains committed to VR hardware development, with a roadmap for future headsets tailored to different audience segments. The company is also doubling down on AI, as evidenced by CEO Mark Zuckerberg's statement envisioning a future where most glasses are AI-driven. Sales of Meta's AI glasses have tripled in the past

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Originally published on TechCrunch on 2/20/2026