Meta's Reality Labs cuts spark fears of a 'VR winter'

Meta's recent cuts in its Reality Labs division, which focuses on virtual reality (VR), have raised concerns about a potential 'VR winter'. The company laid off 10% of its Reality Labs employees, primarily affecting VR-related projects such as the Quest VR headsets and Horizon Worlds. Meta is shifting its focus from VR to artificial intelligence (AI) and smart glasses, leading to a significant reduction in VR investments. Industry experts suggest that the VR market may be niche, with limited appeal to the general consumer, and that the industry is undergoing a major transition. Despite these changes, Meta maintains that it is still heavily investing in VR, although the pace of growth is slower than anticipated.