TechCrunch Industry News Well, there goes the metaverse!
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Jan 21, 2026 The podcast dives into Meta's retreat from the metaverse, highlighting significant layoffs and the shutdown of VR studios. It discusses Meta's costly gamble on VR, with losses topping $73 billion. There's a look at public apathy towards early metaverse products and declining headset sales. Additionally, the conversation shifts towards Meta's new focus on AI and Ray-Ban smart glasses, revealing a strategic pivot as consumer demand evolves. Safety concerns in Horizon Worlds and the unpopular high fees for creators are also explored.
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Metaverse Bet Failed Economically
- Meta abandoned its big metaverse bet after years of heavy losses and weak consumer demand for VR products.
- The company funneled roughly $73 billion into Reality Labs while VR headset shipments declined for three consecutive years.
Rebrand Served Multiple Purposes
- The metaverse rebrand served partly to distance Meta from Facebook's reputational issues.
- Executives pitched virtual worlds as the next social platform to attract younger users in gaming spaces.
Scale Of Spending Was Staggering
- Meta's Reality Labs spending was massive and unsustainable relative to returns and investor tolerance.
- $73 billion equals roughly $1M per day for 200 years, illustrating the scale of the bet.