Meta, formerly known as Facebook, is currently marking the 10th anniversary of its acquisition of VR company Oculus, which laid the foundation for Meta’s development in the VR space. The purchase of Oculus in 2014 by Mark Zuckerberg was a pivotal moment that has since driven Meta’s mission to lead the next stage of computing. Over the years, Oculus has evolved into Meta’s standalone VR headsets known as Quest, which have revolutionized the VR landscape with their untethered technology. Meta has also introduced new forms of digital connection through VR spaces, games, smart glasses, and the Horizon VR social experience powered by AI.
Despite Meta’s significant advances in VR technology, the company has faced criticism over the years for the slow pace of progress. Meta has invested over $50 billion in VR development, with $17 billion spent in 2023 alone. This massive investment surpasses the entire GDP of many countries around the world. While VR adoption is gradually increasing, Meta has yet to generate profits from its VR ventures and continues to incur financial losses. The company’s long-term strategy involves focusing on boosting VR engagement and take-up, even if it means facing major financial setbacks in the short term.
In response to competition from other tech giants like Apple, Meta is planning to release advanced AR glasses in the near future. The cost of developing VR and AR hardware is significant, and companies like Meta may need to pass on some of these costs to consumers. Meta’s approach to offering expensive AR glasses for preview before a consumer release reflects its commitment to driving adoption of VR and AR technologies. Despite the financial risks associated with these investments, Meta is banking on the evolving technology and changing consumer behaviors to eventually lead to widespread adoption of VR and AR within the next decade.
Meta has long maintained that the concept of the metaverse is a long-term vision that will take time to materialize for the majority of people. While the company faces skepticism and uncertainty about the future of VR, Meta’s efforts to innovate and advance in the VR space may eventually pay off in the long run. In five years, the trajectory of Meta’s VR ventures will become clearer, and in 10 years, the company could be celebrated for its visionary approach to the metaverse. Despite the potential financial risks involved, Meta’s commitment to advancing VR technology and driving adoption of AR and VR experiences indicates a belief in the future potential of these technologies within the tech landscape. The broader trends emerging in the tech industry suggest that VR and AR technology are likely to play a significant role in the future, reinforcing Meta’s strategic direction in investing in these emerging technologies despite the challenges and uncertainties that lie ahead.