Meta CTO acknowledges 'sadness' over Reality Labs cuts

Meta has invested billions in its VR and metaverse initiatives. The company even changed its name to reflect this focus. 

However, following recent cutbacks and product reductions, Meta's CTO acknowledged that the sector's expansion was "slower than we anticipated."

Andrew "Boz" Bosworth addressed questions on his Instagram story on Monday. One inquiry directed at Meta's chief technology officer was: "There's significant pessimism about Quest's and gaming's future. What's the reality?"

Bosworth stated that the pessimism was largely exaggerated.

"There's a true sense of loss here," Bosworth noted, referring to Meta's latest reductions in its Reality Labs unit, which manages Meta's metaverse and VR initiatives.

"There are individuals involved in efforts we were enthusiastic about, efforts we wanted integrated into the structure."

Meta came to realise that its aspirations for Horizon and VR were "excessive," he mentioned. Reality Labs has accumulated more than $70 billion in losses since 2020.

"The investment we made surpasses the ecosystem's growth capacity," he expressed. "That's a genuine loss. It's okay to feel disappointed about these matters."

Meta has discontinued several VR products, such as its virtual workplace and fitness applications.

Nevertheless, Bosworth emphasized that Meta remains "highly optimistic about VR," prioritising content investment more than any other player in the market.

"Indeed, we've stepped back from our pinnacle, but we continue to be a significant positive force in investing in this ecosystem," he remarked.

The Reality Labs division also includes Meta's AI glasses venture, which has been rapidly expanded. 

As Meta's focus on wearables has intensified, some observers have speculated whether this could lead to reduced emphasis on VR.

In December, Bosworth indicated that both products were distinct and that Meta could pursue them simultaneously. In the February update, he confirmed that statement remained valid.

"If VR had been expanding at the pace we all hoped, we might have refrained from implementing these changes, and wearables would continue flourishing," he explained. "It's incorrect to treat these elements as mutually exclusive."

A year ago, Bosworth predicted 2025 would be pivotal for the metaverse. "This year might determine if our entire endeavor will be remembered as the work of innovators or an epic misstep," he penned in a memo.