Meta has laid off over 100 employees in its Reality Labs division, which focuses on augmented reality and virtual reality projects including the Meta Quest. The layoffs affected teams within Oculus Studios, known for developing games for Quest, as well as hardware teams. A Meta spokesperson stated that these changes aim to enhance efficiency for future mixed reality experiences while maintaining content quality for current users. The Supernatural fitness app team, acquired by Meta for $400 million in 2023, was notably impacted by these cuts. Despite the layoffs, Meta is committed to investing in mixed reality, yet the division has seen significant financial losses, with over $1 billion monthly over the past two years.

What are the implications of Meta's layoffs for the future of VR and AR gaming?

The layoffs at Meta suggest a shift in strategy towards more efficient team structures, which may impact the development pace and creativity of future VR and AR games. While the company insists on continuing investments in this field, the reduction in workforce could slow the innovation cycle that gamers expect from leading VR platforms.

Meta, formerly known as Facebook, has been a key player in the virtual reality space since acquiring Oculus in 2014. With the launch of the Quest headsets and successful applications like Beat Saber and Supernatural, Meta aimed to cement its place in the gaming and fitness sectors through immersive experiences. The ongoing changes reflect the company's navigation through competitive pressures and financial challenges while trying to reshape the future of gaming technology.