Metaverse's swan song also affects game studios

This Tuesday, the wave of layoffs at Reality Labs, Meta Platforms' metaverse division, is rolling in. This division was supposed to lead the data group, formerly known as Facebook, into the future, to the real profits in virtual realities. 100 billion dollars later, a reshuffle is now underway: the company is focusing on AI, and the division on body-worn devices, or wearables.

Meta Platforms confirmed this on Tuesday. Over 1,000 employees are being let go at Reality Labs. Investments in virtual reality (VR) are being scaled back to make the venture "sustainable," as Meta's Chief Technology Officer Andrew Bosworth stated in an internal memo, according to Bloomberg.

Another internal memo announced that he is closing three company-owned computer game studios that have brought computer games into VR: Armature (known for the VR version of Resident Evil 4), Sanzaru (e.g., Asgard’s Wrath, Marvel Powers United), and Twisted Pixel (including Deadpool VR and Defector). Furthermore, the fitness app Supernatural, acquired for hundreds of millions of US dollars, is being put on life support: the VR service will continue to run for the time being, but there will be no new content or features.

The Metaverse is dead, long live the Metaverse

Bosworth wants to stick with the metaverse itself, at least in name. He wants it to be successful on mobile phones in the future. This is understandable, as the bulky VR headsets never found their mass market. But what the metaverse is without VR remains open.

The manager is sticking with glasses - but with AI and Augmented Reality instead of Virtual Reality. The Ray-Ban sunglasses with camera and AI assistant are selling well, so their production is to be multiplied. They are the result of a cooperation between Meta and the European eyewear manufacturer EssilorLuxottica.

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