Meta allegedly disgruntled over financial losses incurred by its VR sector
New and Tensed Times for Meta's VR/AR Developers
Meta's ambitions in the VR/AR realm are as strong as ever, with plans to release new headsets and AR glasses within the next few years. However, the going gets tougher for those working on the next big metaverse projects. A recent report suggests that Meta has instructed its VR/AR teams to trim their budgets by a fifth. Despite these cost-cutting measures, the company still expects the development of a Meta Quest 4 headset, a superior Quest Pro model, and AR glasses sans the Ray Bans logo in the upcoming three years.
The tech titan is increasingly leaning towards AI, with whispers of launching its Llama 400B semi-open source AI model by the end of this month. Despite this shift, Meta hasn't forsaken its VR/AR-centric Reality Labs division. However, the division has been notorious for burning through billions of dollars on various projects. As per The Information, the team is being urged to shave off around 20% of their expenses, which seems substantial given the division's quarterly loss of $3.85 billion.
The division's financial troubles were allegedly confirmed by Meta's chief financial officer, Susan Li, to the staff. Since 2019, the division has reportedly lost a staggering $55 billion. Yet, Meta's metaverse dreams persist, and we're yet to learn where these financial slashes will land.
For now, the calendar still bears some promising products, with a pair of AR glasses making their debut as early as next year. These glasses, devoid of Ray Bans branding, will reportedly weigh around 70 grams, featuring somewhat hefty frames and an LCD screen in the right lens. Detailing is scant on how Meta will balance wearability and performance. However, the company is reportedly focusing on bolstering the glasses' AI imaging capabilities.
The future holds the highly anticipated sequel to the Meta Quest 3 in 2026. While we've appreciated the improvements in the Meta Quest 3, Meta reportedly plans to launch two versions—one budget-friendly and the other premium—in an attempt to cater to various consumer needs.
A new version of the Quest Pro is rumored to launch in 2027, pitted against Apple's Vision Pro. Despite Apple's and Meta's pursuit of the metaverse market, both companies are grappling with making their devices appealing, given their premium pricing and performance-vs-size trade-offs. In the VR race, both companies are now contending not just their technological prowess but also their willingness to maintain their investments in a waning metaverse market.
- Amidst the tightening budgets, Meta is still pushing forward with the development of the Meta Quest 4 headset, the superior Quest Pro model, and AR glasses, despite the Reality Labs division's troubles in achieving profitability.
- The upcoming AR glasses, scheduled to debut as early as 2023, will reportedly feature an LCD screen in the right lens, and the company is focusing on bolstering their AI imaging capabilities.
- Rumors suggest that Meta will release two versions of the Meta Quest 3 in 2026, a budget-friendly and a premium model, aiming to cater to diverse consumer needs.
- In the ongoing VR race, Meta and Apple are both vying for market dominance, not only on their technological prowess but also on their commitment to invest in the potentially waning metaverse market, despite the premium pricing and performance trade-offs of their devices.