"Imagine changing your popular brand to capitalize on an emerging tech trend that never emerged. Mark Zuckerberg did just that, and now Meta is backing away from the virtual reality business in which it invested billions. In 2025, Meta's Reality Labs division, responsible for the company's various VR projects, posted a $4.2 billion loss in the first quarter. AI is in, the metaverse is out, and around 1,000 jobs are reportedly being shed from Reality Labs."
"A decision to end the sale of Meta Quest headsets to businesses is further evidence of Meta's pivot. In an update, Meta wrote: "We are stopping sales of Meta Horizon managed services and commercial SKUs of Meta Quest, effective February 20, 2026." For existing customers, Meta Horizon services licenses will become free, and those with Meta Quest 3 and 3S headsets will be able to access the services until January 4, 2030."
"Horizon Workrooms, a virtual reality conferencing system, was introduced in 2021 and failed to set the world alight. At the time, Rupert Goodwins, writing for The Register, said: "It encapsulates a paucity of imagination and self-awareness that goes beyond the risible and the banal into the truly horrific." Meta's abrupt shuttering of the service further demonstrates the change in direction amid weakened demand for headsets."
Meta is retreating from its heavy virtual reality bet after substantial losses and weak consumer demand. Reality Labs posted a $4.2 billion loss in Q1 2025 and roughly 1,000 jobs are reportedly being cut. Meta will end sales of Meta Horizon managed services and commercial Meta Quest SKUs effective February 20, 2026; existing customers will receive free Horizon licenses and Quest 3/3S users can access services until January 4, 2030. Meta Horizon Workrooms will be discontinued with users given until February 16 to find alternatives. The company is shifting emphasis to AI as bulky headsets decline in relevance.
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