Meta is reportedly rethinking its VR funding strategy
According to a report, Meta is rethinking its VR content funding, which has forced some studios to lay off staff.
The Information writes that Meta has changed its strategy for funding VR content, cutting funding to a number of outside studios, resulting in layoffs and project delays. The site cites "weakening sales" over the past year as the reason.
To back up its claim, The Information cites two examples of affected third-party studios: Dutch studio Monks, which develops worlds for Horizon Worlds, and Paris-based production house Atlas V, which specializes in VR films and experiences and released its first full VR game in 2023 with Wallace & Gromit in The Grand Getaway. The Information also mentions the closure of Meta's own VR studio Ready at Dawn this summer as part of the same strategy shift.
Meta is now said to prioritize so-called lifestyle apps through a new mixed reality accelerator as well as certain games that it believes could have a broader appeal.
A Meta representative acknowledged that some deals have slowed this year after the company initiated a strategy review process, but said the review has not resulted in an overall freeze on developer funding. Meta intends to spend more on developer funding this year than last, the spokesman said. He declined to give details on how those funds would be allocated.
No, Meta isn't turning away from VR
We do not know how many studios are affected by the cuts, so we can only make limited statements about the extent of the measures. According to the Meta spokesperson, however, this is not a fundamental departure from developer funding.
It is to be expected that a company like Meta will evaluate its funding strategy and make adjustments, especially if the results are not as successful as expected.
The change in strategy also comes in the wake of cost-cutting measures Meta is currently implementing at Reality Labs. The Information reported his summer that Meta's VR/AR division has been ordered to cut costs by 20 percent by 2026. Again, this does not mean that Meta is pulling out of the VR or AR business, just a shift in priorities.
If you are a studio or developer affected by Meta's cuts, please reach out to me at tomislav@mixed.de.
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