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Meta kills its VR metaverse after $84 billion in losses – Hypergrid Business

by admin
March 19, 2026
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Meta kills its VR metaverse after $84 billion in losses – Hypergrid Business
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Zuckerberg’s AI-generated seaside. (Picture courtesy Meta.)

Meta introduced this week that it’s pulling the plug on the digital actuality model of Horizon Worlds, the platform that was as soon as the centerpiece of Mark Zuckerberg’s metaverse wager.

Beginning June 15, customers will now not have the ability to construct, publish, or replace VR worlds, or entry Meta Horizon Worlds on Meta Quest headsets, according to Meta’s announcement.

The platform will survive solely as a standalone cell app.

It’s a exceptional finish for a undertaking that prompted Zuckerberg to rename his whole firm.

When Meta modified its title from Fb in October 2021, Zuckerberg referred to as the metaverse “the following frontier,” writing: “Our hope is that inside the subsequent decade, the metaverse will attain a billion folks, host tons of of billions of {dollars} of digital commerce, and help jobs for tens of millions of creators and builders.”

Nicely, that didn’t go the way in which he deliberate. In his video again then asserting the metaverse, which I forced myself to watch, Zuckerberg got here off a bit lizard-like,

You’ll be able to watch his whole keynote presentation under, if you’d like just a little blast from the previous:

What’s going away, and when

By March 31, Horizon Worlds and Occasions will disappear from the Quest Retailer, and Meta’s personal showcase worlds — Horizon Central, Occasions Area, Kaiju, and Bobber Bay — will go darkish in VR, in keeping with Meta’s announcement.

Horizon-specific Meta Horizon Plus perks, together with Meta Credit, Digital Clothes, and In-World Purchases, will even be faraway from the subscription.

Customers who’ve already downloaded Horizon Worlds can maintain enjoying in VR till June 15, after which the app shall be faraway from Quest completely.

This week’s announcement wasn’t the primary shoe to drop.

In February, Meta completely shut down Horizon Workrooms — the VR assembly platform pitched to workplace employees as a substitute for Zoom — and deleted all consumer information. The corporate additionally stopped promoting business Quest headsets and stopped accepting new prospects for its Quest for Enterprise program, according to a business impact analysis by Snazzy Solutions.

The January Actuality Labs layoffs lower over 1,000 workers and shuttered VR studios, together with Ouro Interactive, an in-house studio inbuilt 2023 particularly to create first-party Horizon Worlds content material, according to Bloomberg.

The invoice comes due

Actuality Labs misplaced $19.19 billion in 2025 alone, bringing cumulative losses since 2020 to $83.6 billion, in keeping with Meta’s This fall and full-year 2025 earnings report.

Samantha Ryan, Meta’s VP of content material at Actuality Labs, framed the shutdown as a “doubling down” somewhat than a retreat, saying in a February blog post that Meta could be “doubling down on the VR developer ecosystem whereas shifting the main focus of Worlds to be nearly solely cell.”

“By breaking issues down into two distinct platforms, we’ll be higher in a position to clearly give attention to every,” she added.

Ryan additionally insisted that Meta stays dedicated to VR. She stated that Meta was nonetheless “the only greatest investor within the VR business” and nonetheless believed in VR “as a essential know-how on the trail to the following computing platform.”

An not possible promote for enterprise

The failure of Horizon Workrooms, Meta’s enterprise VR assembly platform, was completely predictable.

Should you’re in a Zoom assembly, you may verify your e mail, pull up your calendar, share your display, use a whiteboard, and entry recordings and transcripts. Everybody already has Zoom put in. Everybody already has a digicam.

If you wish to maintain that very same assembly in VR, you first want to seek out your headset. Cost it. Obtain no matter updates have amassed. Keep in mind the way to use it. Work out the way to share the assembly invite. Be certain that all of your co-workers have their tools. Educate a minimum of certainly one of them the way to use theirs.

Founder Mark Zuckerberg asserting that Fb is altering its company title to Meta…

Then, when you’re truly within the assembly, the screens are onerous to learn. You don’t have quick access to your desktop apps. Typing is tough or not possible. You’ll be able to’t verify your cellphone if one thing pressing is available in.

It’s not sensible for 99.9 % of enterprise use circumstances.

I’ve actually tried to do work in VR. I actually have. I’ve tried to tug my workforce members in. I’ve even given out free headsets. It’s a really onerous promote. There’s actually no upside to doing work in VR. It’s all draw back..

And for the uncommon case the place VR may make sense — say, reviewing a bodily product mockup with a distributed workforce — you’d should add that mockup to Meta’s servers. Meta would have entry to each dialogue about it, each doc associated to it, each inner element of your product growth course of. For any firm critical about mental property, that alone is a dealbreaker.

That is what Horizon Workrooms by no means solved. The buyer model had the identical issues. Wagner James Au, a longtime digital worlds journalist, informed The American Prospect that Horizon Worlds didn’t get “the social side proper,” noting that “these are digital communities they usually should be welcoming. They should have folks you wish to hang around with within the expertise.”

What Second Life and OpenSim acquired proper — sort of

In the meantime, Second Life, which launched in 2003, earlier than the iPhone existed, remains to be operating.

So are tons of of OpenSim grids, lots of them operated by volunteers on a shoestring price range. The hypergrid, a community of interconnected OpenSim worlds the place avatars can teleport between grids whereas protecting their look, belongings, and buddy lists, was by no means going to lose $19 billion in a single 12 months. It additionally was by no means going to get shut down by a quarterly earnings name.

The distinction with Meta is stark. Second Life’s digital financial system strikes roughly $650 million per 12 months, and Linden Lab has paid out $1.1 billion to creators over the platform’s lifetime — 14 of whom grew to become millionaires from promoting digital vogue and actual property, according to an analysis of the platform’s history by game developer Philip Ludington.

Meta, by comparability, by no means constructed a functioning creator financial system. Whereas Second Life customers retain copyright to their content material, Meta Horizon Worlds gave Meta sole management over content material and utilization rights. It was a closed ecosystem run by a single entity.

The income break up made issues worse. When Meta examined in-app purchases, creators obtained solely 52.5 % of pre-tax income after platform charges. Philip Rosedale — now CTO of Linden Lab, and Second Life’s authentic founder — referred to as Meta’s charge construction self-defeating, telling PC Gamer: “It looks like an effective way to dissuade creators from truly collaborating in its financial system, however frankly I’d count on nothing much less from them.” He famous on the time that Linden Lab had paid out $86 million to Second Life creators in a single 12 months.

Second Life’s magic sauce was not its know-how.

Meta thought higher graphics and VR immersion would assist it succeed. Sansar thought VR-native design would do it. Excessive Constancy thought next-gen infrastructure would do it. Decentraland thought blockchain possession would do it. None of it labored, as a result of Second Life’s benefit isn’t know-how however somewhat 23 years of amassed tradition, financial infrastructure, and relationships constructed inside a shared world, says Ludington.

OpenSim has one thing even more durable to duplicate: it’s totally open supply, decentralized, and owned by nobody. No company board can resolve to close it down. No quarterly earnings report can kill it. It’s extra like the way in which the Web works, and why I’m an enormous fan. And in addition why I’ve been writing about OpenSim for the previous 17 years.

Personally, I believe a closed metaverse isn’t the way in which to go.

What Meta is shutting down, and what’s staying

Plenty of headlines this week stated “Meta kills its metaverse.” Together with mine. That’s the way you get the clicks, proper?

However that’s not fairly the total image.

Shutting down in VR:

  • Horizon Worlds — however simply the VR model: Gone from the Quest Retailer by March 31; the app itself faraway from all Quest headsets on June 15, according to Meta’s announcement.
  • Horizon Workrooms: Meta’s VR workplace assembly platform shut down in February, with all consumer information deleted, according to PC Gamer.
  • Quest for Enterprise: Meta stopped promoting business Quest headsets and accepting new enterprise prospects in February, in keeping with PC Gamer.
  • Meta’s personal first-party VR content material: Meta acknowledged in its developer weblog that 86 % of the time Quest customers spend of their headsets is already with third-party apps — that means its personal content material was largely irrelevant to how folks truly used the gadget. The corporate has now closed three in-house VR studios completely.
  • The Horizon Feed and Worlds button in Quest’s interface: The headset’s new Navigator UI boots to a grid of put in apps, with the Horizon social feed eliminated, according to Engadget.

Nonetheless accessible:

  • Quest headsets: Nonetheless being offered. Meta says it has “a strong roadmap of future VR headsets that shall be tailor-made to totally different viewers segments,” in keeping with its developer weblog. A next-generation gaming headset is in growth, according to Tom’s Guide.
  • Third-party VR video games: Beat Saber, Superhot VR, Gorilla Tag, and hundreds of others stay totally accessible on Quest. Meta says it invested almost $150 million in VR developer packages in 2025 and that new releases together with Exhausting Bullet, The Thrill of the Battle 2, and UG every earned tens of millions in income, in keeping with Meta’s developer weblog.
  • Horizon Worlds as a cell app: Survives on iOS and Android, repositioned as a Roblox-style cell recreation platform. Meta says it grew cell month-to-month energetic customers greater than 4 occasions over in 2025, and that 4 cell creators hit $1 million in lifetime income, in keeping with the developer weblog.
Maria Korolov
Hypergrid Enterprise editor and writer Maria Korolov is a science fiction novelist. In the course of the day, Maria Korolov is an award-winning freelance technology journalist who covers artificial intelligence, cybersecurity and enterprise virtual reality. See her Amazon author page here and follow her on Twitter, Facebook, or LinkedIn, and take a look at her newest movies on the Maria Korolov YouTube channel. E mail her at [email protected]. Her first digital world novella, Krim Times, made the Amazon best-seller listing in its class. Her second novella, The Misplaced King of Krim, is out now. She can also be the writer of MetaStellar, a brand new on-line journal of speculative fiction.
Maria Korolov
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