Meta Shifts Strategy from Metaverse to AI Wearables Amid Market Skepticism
Meta is scaling back its metaverse investments by up to 30%, redirecting resources toward AI-powered glasses and wearables. The pivot follows stagnant growth in VR platforms like Horizon Worlds and lukewarm adoption of its headsets. Shares ROSE 3% on reports of the spending cuts.
The move underscores broader industry skepticism about the metaverse’s commercial viability. Once central to Mark Zuckerberg’s vision, Meta’s $10B+ bet on VIRTUAL worlds has failed to deliver expected returns. Meanwhile, smart glasses with AI integrations are gaining traction as the next frontier.
Meta’s rebranding in 2021 now appears premature. The company insists no ‘broader changes’ are planned, but the recalibration signals a pragmatic turn toward near-term revenue drivers over speculative tech.
