Meta is shutting down Horizon Worlds VR in further pivot away from the metaverse

In a significant transformation, Meta has announced the closure of Horizon Worlds, its virtual reality social platform designed for Quest VR headsets. This decision marks a pivotal change in the company’s strategy regarding the metaverse. According to a community blog post released on Tuesday, the Horizon Worlds app will be removed from the Quest store by the end of March, with complete discontinuation of VR access slated for June 15. After this date, the platform will only be available as a standalone mobile application. Meta indicated that this separation aims to allow each platform to evolve independently with enhanced focus. The Horizon Worlds platform will transition to a mobile-only experience, reflecting a broader shift in Meta’s priorities. This development follows recent layoffs at Reality Labs, Meta's division responsible for metaverse initiatives, which saw over 1,000 employees let go, including those working on VR projects. When Meta rebranded from Facebook in October 2021, CEO Mark Zuckerberg envisioned the metaverse as "the next frontier," anticipating it would connect a billion users and generate substantial digital commerce. However, Horizon Worlds has struggled to capture widespread user engagement, peaking at just a few hundred thousand active users monthly, as previously reported by CNBC. Launched in late 2021, Horizon Worlds was intended as an immersive 3D social network where users could create avatars, interact, and participate in games. It remained exclusive to the QuestVR ecosystem until a mobile app was introduced in September 2023, designed to attract users without VR headsets, similar to platforms like Roblox. Despite its ambitious goals, the metaverse has proven to be a costly venture for Meta, with Reality Labs reporting significant financial losses each quarter. In January, the unit disclosed an operating loss of $6.02 billion for the fourth quarter. In light of these challenges, Meta has shifted its attention toward advancing artificial intelligence, signaling a strategic pivot away from its earlier emphasis on virtual reality. Last month, the company outlined plans to restructure its VR efforts, with Reality Labs' VP of content, Samantha Ryan, emphasizing a renewed commitment to the VR developer ecosystem while focusing Horizon Worlds primarily on mobile accessibility. Ryan stated, "By dividing these platforms, we can concentrate more effectively on their individual growth."