Meta, the parent company of Facebook, is reportedly revamping its approach to virtual reality (VR) content funding, a move that has led to budget cuts for some external studios. This shift in strategy comes amidst reports of declining sales in the VR market over the past year.
The change has had tangible effects on the VR development landscape. Some studios have been forced to reduce their workforce, while others have had to postpone projects. Two notable examples are Monks, a Dutch studio known for creating environments for Horizon Worlds, and Atlas V, a Paris-based production company specializing in VR films and experiences.
This strategic pivot isn't limited to external partners. Meta's internal VR efforts have also been affected, as evidenced by the closure of its own VR studio, Ready at Dawn, earlier this year.
Moving forward, Meta appears to be focusing its resources on two main areas:
- Lifestyle applications, which will be supported through a new mixed reality accelerator program
- Select games that the company believes have the potential for broad appeal
While acknowledging that some deals have slowed this year due to a strategy review, a Meta spokesperson stated that there isn't a complete freeze on developer funding. In fact, the company plans to increase its overall spending on developer funding compared to the previous year, though specific allocation details were not provided.
This recalibration of Meta's VR strategy highlights the evolving nature of the VR market and the challenges companies face in navigating this emerging technology landscape. As the industry continues to mature, it's likely we'll see further adjustments from major players as they seek to align their investments with market demands and technological advancements.