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Home Metaverse

Meta kills its VR metaverse after $84 billion in losses – Hypergrid Enterprise

March 21, 2026
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Meta kills its VR metaverse after  billion in losses – Hypergrid Enterprise
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Replace Mar. 19:  Meta CTO Andrew Bosworth stated on an Instagram AMA that Meta has reversed its determination. The hyperlink to the Instagram put up is lifeless, however he additionally posted an replace on Threads, which continues to be up.  “We’ve determined to retain current Horizon Worlds in VR for the foreseeable future,” he wrote. “I do know this can be a little bit of whiplash just some days after we introduced one thing completely different, however Horizon has some actual followers within the VR neighborhood they usually inspired us to rethink our determination.

 

 

Meta introduced this week that it’s pulling the plug on the digital actuality model of Horizon Worlds, the platform that was as soon as the centerpiece of Mark Zuckerberg’s metaverse guess.

Beginning June 15, customers will not be capable to construct, publish, or replace VR worlds, or entry Meta Horizon Worlds on Meta Quest headsets, in line with Meta’s announcement.

The platform will survive solely as a standalone cellular app.

It’s a outstanding finish for a undertaking that prompted Zuckerberg to rename his complete firm.

Zuckerberg’s AI-generated seaside. (Picture courtesy Meta.)

When Meta modified its identify from Fb in October 2021, Zuckerberg referred to as the metaverse “the subsequent frontier,” writing: “Our hope is that inside the subsequent decade, the metaverse will attain a billion individuals, host tons of of billions of {dollars} of digital commerce, and assist jobs for hundreds of thousands of creators and builders.”

Properly, that didn’t go the best way he deliberate. In his video again then asserting the metaverse, which I compelled myself to observe, Zuckerberg got here off a bit lizard-like,

You possibly can watch his complete keynote presentation beneath, if you would like a bit of blast from the previous:

What’s going away, and when

By March 31, Horizon Worlds and Occasions will disappear from the Quest Retailer, and Meta’s personal showcase worlds — Horizon Central, Occasions Area, Kaiju, and Bobber Bay — will go darkish in VR, in line with Meta’s announcement.

Horizon-specific Meta Horizon Plus perks, together with Meta Credit, Digital Clothes, and In-World Purchases, can even be faraway from the subscription.

Customers who’ve already downloaded Horizon Worlds can preserve taking part in in VR till June 15, after which the app will likely be faraway from Quest completely.

This week’s announcement wasn’t the primary shoe to drop.

In February, Meta completely shut down Horizon Workrooms — the VR assembly platform pitched to workplace employees as a substitute for Zoom — and deleted all person information. The corporate additionally stopped promoting business Quest headsets and stopped accepting new prospects for its Quest for Enterprise program, in line with a enterprise impression evaluation by Snazzy Options.

The January Actuality Labs layoffs reduce over 1,000 workers and shuttered VR studios, together with Ouro Interactive, an in-house studio in-built 2023 particularly to create first-party Horizon Worlds content material, in line with Bloomberg.

The invoice comes due

Actuality Labs misplaced $19.19 billion in 2025 alone, bringing cumulative losses since 2020 to $83.6 billion, in line with Meta’s This autumn and full-year 2025 earnings report.

Samantha Ryan, Meta’s VP of content material at Actuality Labs, framed the shutdown as a “doubling down” reasonably than a retreat, saying in a February weblog put up that Meta can be “doubling down on the VR developer ecosystem whereas shifting the main focus of Worlds to be nearly completely cellular.”

“By breaking issues down into two distinct platforms, we’ll be higher capable of clearly give attention to every,” she added.

Ryan additionally insisted that Meta stays dedicated to VR. She stated that Meta was nonetheless “the one largest investor within the VR trade” and nonetheless believed in VR “as a vital know-how on the trail to the subsequent computing platform.”

An unimaginable promote for enterprise

The failure of Horizon Workrooms, Meta’s enterprise VR assembly platform, was completely predictable.

Should you’re in a Zoom assembly, you’ll be able to verify your e mail, pull up your calendar, share your display, use a whiteboard, and entry recordings and transcripts. Everybody already has Zoom put in. Everybody already has a digicam.

If you wish to maintain that very same assembly in VR, you first want to seek out your headset. Cost it. Obtain no matter updates have collected. Keep in mind tips on how to use it. Determine tips on how to share the assembly invite. Be certain that all of your co-workers have their gear. Train not less than one in every of them tips on how to use theirs.

Founder Mark Zuckerberg asserting that Fb is altering its company identify to Meta…

Then, when you’re really within the assembly, the screens are exhausting to learn. You don’t have easy accessibility to your desktop apps. Typing is troublesome or unimaginable. You possibly can’t verify your telephone if one thing pressing is available in.

It’s not sensible for 99.9 % of enterprise use instances.

I’ve actually tried to do work in VR. I actually have. I’ve tried to tug my staff members in. I’ve even given out free headsets. It’s a really exhausting promote. There’s actually no upside to doing work in VR. It’s all draw back..

And for the uncommon case the place VR may make sense — say, reviewing a bodily product mockup with a distributed staff — you’d must add that mockup to Meta’s servers. Meta would have entry to each dialogue about it, each doc associated to it, each inner element of your product improvement course of. For any firm severe about mental property, that alone is a dealbreaker.

That is what Horizon Workrooms by no means solved. The buyer model had the identical issues. Wagner James Au, a longtime digital worlds journalist, informed The American Prospect that Horizon Worlds didn’t get “the social side proper,” noting that “these are digital communities they usually must be welcoming. They should have individuals you need to hang around with within the expertise.”

What Second Life and OpenSim obtained proper — type of

In the meantime, Second Life, which launched in 2003, earlier than the iPhone existed, continues to be working.

So are tons of of OpenSim grids, lots of them operated by volunteers on a shoestring funds. The hypergrid, a community of interconnected OpenSim worlds the place avatars can teleport between grids whereas preserving their look, belongings, and buddy lists, was by no means going to lose $19 billion in a single 12 months. It additionally was by no means going to get shut down by a quarterly earnings name.

The distinction with Meta is stark. Second Life’s digital financial system strikes roughly $650 million per 12 months, and Linden Lab has paid out $1.1 billion to creators over the platform’s lifetime — 14 of whom turned millionaires from promoting digital trend and actual property, in line with an evaluation of the platform’s historical past by sport developer Philip Ludington.

Meta, by comparability, by no means constructed a functioning creator financial system. Whereas Second Life customers retain copyright to their content material, Meta Horizon Worlds gave Meta sole management over content material and utilization rights. It was a closed ecosystem run by a single entity.

The income break up made issues worse. When Meta examined in-app purchases, creators obtained solely 52.5 % of pre-tax income after platform charges. Philip Rosedale — now CTO of Linden Lab, and Second Life’s authentic founder — referred to as Meta’s payment construction self-defeating, telling PC Gamer: “It looks as if an effective way to dissuade creators from really taking part in its financial system, however frankly I’d count on nothing much less from them.” He famous on the time that Linden Lab had paid out $86 million to Second Life creators in a single 12 months.

Second Life’s magic sauce was not its know-how.

Meta thought higher graphics and VR immersion would assist it succeed. Sansar thought VR-native design would do it. Excessive Constancy thought next-gen infrastructure would do it. Decentraland thought blockchain possession would do it. None of it labored, as a result of Second Life’s benefit isn’t know-how however reasonably 23 years of collected tradition, financial infrastructure, and relationships constructed inside a shared world, says Ludington.

OpenSim has one thing even tougher to duplicate: it’s totally open supply, decentralized, and owned by nobody. No company board can determine to close it down. No quarterly earnings report can kill it. It’s extra like the best way the Web works, and why I’m an enormous fan. And in addition why I’ve been writing about OpenSim for the previous 17 years.

Personally, I believe a closed metaverse isn’t the best way to go.

What Meta is shutting down, and what’s staying

Plenty of headlines this week stated “Meta kills its metaverse.” Together with mine. That’s the way you get the clicks, proper?

However that’s not fairly the total image.

Shutting down in VR:

Horizon Worlds — however simply the VR model: Gone from the Quest Retailer by March 31; the app itself faraway from all Quest headsets on June 15, in line with Meta’s announcement.
Horizon Workrooms: Meta’s VR workplace assembly platform shut down in February, with all person information deleted, in line with PC Gamer.
Quest for Enterprise: Meta stopped promoting business Quest headsets and accepting new enterprise prospects in February, in line with PC Gamer.
Meta’s personal first-party VR content material: Meta acknowledged in its developer weblog that 86 % of the time Quest customers spend of their headsets is already with third-party apps — that means its personal content material was largely irrelevant to how individuals really used the system. The corporate has now closed three in-house VR studios completely.
The Horizon Feed and Worlds button in Quest’s interface: The headset’s new Navigator UI boots to a grid of put in apps, with the Horizon social feed eliminated, in line with Engadget.

Nonetheless out there:

Quest headsets: Nonetheless being bought. Meta says it has “a strong roadmap of future VR headsets that will likely be tailor-made to completely different viewers segments,” in line with its developer weblog. A next-generation gaming headset is in improvement, in line with Tom’s Information.
Third-party VR video games: Beat Saber, Superhot VR, Gorilla Tag, and hundreds of others stay totally out there on Quest. Meta says it invested practically $150 million in VR developer packages in 2025 and that new releases together with Laborious Bullet, The Thrill of the Struggle 2, and UG every earned hundreds of thousands in income, in line with Meta’s developer weblog.
Horizon Worlds as a cellular app: Survives on iOS and Android, repositioned as a Roblox-style cellular sport platform. Meta says it grew cellular month-to-month energetic customers greater than 4 instances over in 2025, and that 4 cellular creators hit $1 million in lifetime income, in line with the developer weblog.

Maria Korolov
Hypergrid Enterprise editor and writer Maria Korolov is a science fiction novelist. Throughout the day, Maria Korolov is an award-winning freelance know-how journalist who covers synthetic intelligence, cybersecurity and enterprise digital actuality. See her Amazon creator web page right here and observe her on Twitter, Fb, or LinkedIn, and take a look at her newest movies on the Maria Korolov YouTube channel. E mail her at [email protected]. Her first digital world novella, Krim Occasions, made the Amazon best-seller record in its class. Her second novella, The Misplaced King of Krim, is out now. She can also be the writer of MetaStellar, a brand new on-line journal of speculative fiction.
Maria Korolov
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