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Where Meta's ambitions for the metaverse fell short

Where Meta's ambitions for the metaverse fell short

101 finance101 finance2026/01/18 15:03
By:101 finance

Meta’s Shift Away from the Metaverse

In October 2021, Mark Zuckerberg announced that Facebook would become Meta (META), positioning the rebrand as a bold leap toward building the metaverse. The company described this transition as a move beyond traditional screens, aiming to create immersive experiences through augmented and virtual reality, which it saw as the next chapter in social technology.

The vision was ambitious: people would work, socialize, and play in interconnected digital worlds, represented by 3D avatars and accessed via advanced headsets or smart glasses.

However, after investing billions over several years, Meta’s grand plan has faltered.

Recently, the company eliminated 1,500 jobs from its Reality Labs division—the hub of its metaverse efforts—and closed three virtual reality game studios. Plans for third-party VR headsets from ASUS and Lenovo, which were to run on Meta’s VR operating system, have also been suspended.

Meta CEO Mark Zuckerberg presents the Meta Quest 3s at the company's headquarters in Menlo Park, Calif., on Sept. 25, 2024. (Reuters/Manuel Orbegozo)

Rather than pursuing a future reminiscent of “Ready Player One,” Meta is redirecting resources toward its smart glasses and wearable technology initiatives.

Consumer enthusiasm for the metaverse never truly materialized, and the project was often mocked for its awkward, legless avatars and lackluster graphics.

While Meta is stepping back from its original metaverse ambitions, the company’s efforts have paved the way for its current focus on AI-powered smart glasses.

Promises and Pitfalls

From the outset, Meta’s metaverse strategy was overly optimistic. Zuckerberg’s initial presentations showcased dazzling possibilities—people interacting as avatars in vibrant 3D environments, reminiscent of science fiction. But the reality fell short.

Ramon Llamas, research director for mobile devices at IDC, told Yahoo Finance, “The initial pitch was impressive, but there were countless hurdles to overcome before the metaverse could become a reality.” He recalled Zuckerberg acknowledging that many of the necessary innovations had yet to be developed.

Although Meta became a leading seller of VR headsets with its Quest line, its Meta Horizon platform failed to gain widespread adoption. The underwhelming graphics and the infamous legless avatars only added to the company’s challenges.

Meta CEO Mark Zuckerberg wears Ray-Ban Meta Display glasses as he presents the new line of smart glasses at the company's headquarters in Menlo Park, Calif., on Sept. 17, 2025. (Reuters/Carlos Barria)

Another obstacle is the discomfort and bulkiness of current headsets, making them impractical for extended use. Even premium devices like Apple’s have struggled to gain traction.

According to Counterpoint Research, global shipments of VR headsets dropped by 14% in the first half of 2025 compared to the previous year.

Samsung also acknowledged that its recently launched Galaxy VR headset serves primarily as a stepping stone for its broader smart glasses strategy.

Despite the setbacks, Meta’s foray into the metaverse has contributed to the development of its successful Ray-Ban Meta smart glasses and Meta Display glasses.

Meta is betting that smart glasses will become the next major computing platform, potentially freeing the company from reliance on Apple’s or Google’s app store ecosystems, which currently govern its smartphone apps.

However, competitors such as Apple, Google, Samsung, XReal, and others are racing to close the gap with Meta’s advancements.

The Future of the Metaverse

Meta’s pivot does not spell the end for the metaverse concept. Gartner analyst Tuong Nguyen suggests that the metaverse should be seen not as a single product or platform, but as a broader trend reflecting the ongoing evolution of the internet.

Nguyen explains that the metaverse represents the merging of various emerging technologies, including headsets, digital displays, and smart glasses. When this convergence will reach mainstream adoption remains uncertain.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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