Meta retreats from metaverse after virtual reality check

Imagine changing your popular brand to capitalize on an emerging tech trend that never emerged. Mark Zuckerberg did just that, and now Meta is backing away from the virtual reality business in which it invested billions.

In 2025, Meta's Reality Labs division, responsible for the company's various VR projects, posted a $4.2 billion loss in the first quarter. AI is in, the metaverse is out, and around 1,000 jobs are reportedly being shed from Reality Labs.

A decision to end the sale of Meta Quest headsets to businesses is further evidence of Meta's pivot. In an update, Meta wrote: "We are stopping sales of Meta Horizon managed services and commercial SKUs of Meta Quest, effective February 20, 2026."

For existing customers, Meta Horizon services licenses will become free, and those with Meta Quest 3 and 3S headsets will be able to access the services until ...