Metaverse
Meta's Reality Labs Budget Cut Amid Metaverse Shift
Sunday. July 21 at 1:30 AM
1 min. readMeta is reportedly reducing the budget of its Reality Labs division, responsible for metaverse hardware and software development, by 20% by 2026. This move, as per The Information, aligns with Meta's plan to transition Reality Labs into production mode for upcoming hardware launches. Analysts predict a $3 billion saving from cost-cutting measures. The timing coincides with Meta's upcoming earnings call on July 31, following a $3.8 billion loss by Reality Labs in the last quarter. CEO Mark Zuckerberg hinted at a shift towards AI efforts during Q1 earnings. The cost-cutting may signal a realignment of divisional focus to attract investors. Despite losses totaling $55 billion since 2019, the fate of Reality Labs hinges on consumer reception of future VR and AR products like the next-gen Quest VR headset and Ray-Ban smart glasses. A holographic headset prototype is also in development. Meta's move reflects a strategic shift towards metaverse expansion.