Meta Pulls Back Metaverse Plans as Horizon Worlds Faces Shutdown
Meta scales down metaverse ambitions after heavy losses, shutting Horizon Worlds VR while insiders blame leadership disconnect from real user needs.
In a significant shift in strategy, Mark Zuckerberg-led Meta has begun stepping back from its ambitious metaverse vision, marking a turning point for one of the tech industry’s most talked-about experiments. The company recently confirmed that it will discontinue the VR version of Horizon Worlds by June 2026, following a series of layoffs within its Reality Labs division.
The metaverse concept was first introduced by Zuckerberg in 2021 as a futuristic digital ecosystem where users could socialise, work, and interact in virtual environments. So central was this vision that the company rebranded from Facebook to Meta — a rare move that reflected its long-term commitment. However, after investing billions of dollars over several years, the company is now scaling back its efforts.
Meta announced that Horizon Worlds, originally built for Quest VR headsets, will no longer be supported on VR devices after June 15, 2026. The app will be removed from the Quest store by the end of March, and features tied to its subscription service — including digital items, avatars, and in-app purchases — will also be discontinued. While the VR experience is being phased out, the platform will remain accessible as a mobile-only application.
The decision follows mounting financial pressure on Meta’s Reality Labs, the division responsible for virtual and augmented reality projects. Since 2020, the unit has reportedly incurred losses of nearly $80 billion, raising concerns among investors and analysts about the sustainability of the company’s metaverse ambitions. Earlier this year, Meta cut more than 1,000 jobs in Reality Labs as part of broader restructuring efforts, with reports suggesting further layoffs could follow amid rising investments in artificial intelligence.
Reasons behind Metaverse Fall
Insights from a former Reality Labs employee have added another layer to the story. Vasuman Moza, who previously worked on metaverse initiatives, pointed to internal challenges as a key reason behind the project’s struggles. He blamed leadership gaps, particularly within middle management, for failing to align products with actual user behaviour. Moza wrote, The Metaverse had real legs but was obliterated by middle management completely out of touch with how young people actually use technology.”
He further shared his own experience, highlighting how potentially useful tools were sidelined during development. According to Moza, “I built a V1 tool that game developers genuinely needed, and the moment it was done, it got shipped to a team in London (to die)” He added, “I was reassigned to a ‘higher-priority project’ that zero developers asked for.”
Reflecting on broader issues within the division, Moza suggested that such missteps were widespread. He concluded, “Multiply that by every team, and you'll understand why this never took off yet cost 80 billion.”
