Meta, formerly known as Facebook, is shifting its focus from virtual reality (VR) to augmented reality (AR) as it reassesses its strategy following substantial losses in its VR division. The transition comes on the heels of Meta’s investment of over $70 billion in VR without the anticipated widespread adoption. Despite initial excitement about the metaverse and immersive experiences, reports suggest that many VR users quickly lose interest, leading to underwhelming sales for products like the Quest VR headset.
In recognition of these challenges, Meta plans to reduce its metaverse workforce by up to 30%, reallocating funds to areas showing growth potential, particularly in AI and AR technologies. The company’s smart glasses, developed in partnership with Ray-Ban, have sold approximately 1.3 million units, generating around $400 million in revenue, which represents a 70 percent increase in sales over the past year.
Other tech giants, including Google, Apple, and Amazon, are also pivoting towards AR. Unlike VR, which often disconnects users from their environment, AR enhances real-world interactions with digital overlays and AI assistance. This shift is reflected in recent data indicating that the global market for smart glasses is expected to quadruple by 2030.
Meta has further accelerated its AR ambitions by hiring top talent and acquiring companies focused on AI wearables. With concrete applications for AR emerging across various sectors, from logistics to healthcare, it seems that the technology may soon find its place in everyday use.
Why this story matters
- The shift from VR to AR indicates a significant change in consumer technology trends and preferences.
Key takeaway
- Meta is reallocating resources to focus on AR, which shows stronger growth potential compared to VR.
Opposing viewpoint
- Some experts argue that VR still has untapped potential, particularly in gaming and simulation, and should not be written off completely.
