Imagine changing your popular brand to capitalize on an emerging tech trend that never emerged. Mark Zuckerberg did just that, and now Meta is backing away from the virtual reality business in which it invested billions.

In 2025, Meta's Reality Labs division, responsible for the company's various VR projects, posted a $4.2 billion loss in the first quarter. AI is in, the metaverse is out, and around [1]1,000 jobs are reportedly being shed from Reality Labs.

A decision to end the sale of Meta Quest headsets to businesses is further evidence of Meta's pivot. In an update, Meta [2]wrote : "We are stopping sales of Meta Horizon managed services and commercial SKUs of Meta Quest, effective February 20, 2026."

[3]

For existing customers, Meta Horizon services licenses will become free, and those with Meta Quest 3 and 3S headsets will be able to access the services until January 4, 2030.

[4]

The company also [5]announced that Meta Horizon Workrooms would be discontinued, with users given until February 16 to make alternative arrangements.

[6]Microsoft mops up Mesh after another metaverse misfire

[7]Zuck ghosts metaverse as Meta chases AI goldrush

[8]Metaverses are flopping – hard – says Gartner

[9]Metaverse? Apple thinks $3,500 AR ski goggles are the betterverse

Horizon Workrooms, a virtual reality conferencing system, was [10]introduced in 2021 and failed to set the world alight. At the time, Rupert Goodwins, writing for The Register , [11]said : "It encapsulates a paucity of imagination and self-awareness that goes beyond the risible and the banal into the truly horrific."

Meta's abrupt shuttering of the service further demonstrates the change in direction amid weakened demand for headsets. Figures for 2025 showed a marked decrease in appetite for VR, with Apple's considerably pricier Vision Pro devices also [12]struggling .

The future of Meta's virtual reality ambitions now rests largely with consumers. The immersive virtual worlds that prompted Zuckerberg to push through the rebrand feel more remote than ever. Instead, Meta is betting on AI as bulky headsets become things of the past. ®

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[1] https://www.bloomberg.com/news/articles/2026-01-13/meta-begins-jobs-cuts-after-shifting-focus-from-metaverse-to-phones

[2] https://work.meta.com/help/1964851097790493/

[3] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/personaltech&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=2&c=2aWpuvHTX7jwD_MtPnvYcDwAAAIQ&t=ct%3Dns%26unitnum%3D2%26raptor%3Dcondor%26pos%3Dtop%26test%3D0

[4] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/personaltech&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=4&c=44aWpuvHTX7jwD_MtPnvYcDwAAAIQ&t=ct%3Dns%26unitnum%3D4%26raptor%3Dfalcon%26pos%3Dmid%26test%3D0

[5] https://www.meta.com/en-gb/help/quest/2464765133873078/

[6] https://www.theregister.com/2025/12/02/microsoft_mesh_axed/

[7] https://www.theregister.com/2025/05/01/metas_metaverse_mention/

[8] https://www.theregister.com/2023/06/28/metaverse_adoption_slow_gartner/

[9] https://www.theregister.com/2023/06/05/apple_vision_pro/

[10] https://www.theregister.com/2021/08/19/facebooks_oculus_horizon/

[11] https://www.theregister.com/2021/08/23/horizon_workrooms_promises_a_virtual/

[12] https://www.theregister.com/2026/01/02/apple_vision_pro_meta_quest_sales_drop/

[13] https://whitepapers.theregister.com/