Last week, reports emerged indicating that Meta might reduce the budget of its Meta Reality Labs unit by up to 30%. This coincided with news about potential delays in the release of future VR headsets, leading some commentators to assert that the viability of the metaverse—and VR technology in general—was in jeopardy. A statement from IBT emphasized this perspective, while Bob O’Donnell of Technalysis Research suggested that VR had never been a suitable choice for investment.
The conversation surrounding Meta’s plans has been complicated by the interchangeable use of “metaverse” and “VR” in discussions. While Reality Labs is primarily seen as the metaverse unit, it is involved in various technologies including augmented reality and AI wearables, as well as VR hardware and the Horizon Worlds platform. Meta’s Chief Technology Officer, Andrew Bosworth, indicated that the metaverse might eventually extend to multiple sectors, including robotics.
Concerns regarding the future of VR are bolstered by challenges facing the VR gaming market. Last year, Meta shut down its VR studio Ready at Dawn, and other studios such as Toast Interactive and Phaser Lock Interactive have recently faced significant layoffs or closures.
Contrary to the bleak outlook, data suggests that VR is still actively used. Public records noted Meta sold at least 120,000 Quest VR headsets through Amazon in November, outperforming major gaming consoles. Games like “Gorilla Tag” are also performing well, boasting over one million daily active users.
Interestingly, the current user demographic skews younger, primarily consisting of Gen Alpha—those aged 15 and younger. Meta’s games director highlighted this shift, noting an unexpected surge in teenage users coinciding with the release of the Quest 3 device. Some VR studios have adapted by developing games targeting this younger audience, leading to notable user growth.
Overall, while challenges exist, particularly in appealing to the traditional gaming market, the VR landscape remains dynamic, particularly among younger users.
Source: https://www.theverge.com/column/842359/vr-teens-gaming