Meta Halts Development On Next-Gen VR Headset Amid Market Concerns

According to Cointelegraph, Meta's metaverse ambitions are facing challenges as the company's Reality Labs division has reportedly ceased work on a next-generation headset. This decision came after CEO Mark Zuckerberg expressed concerns during a product update meeting about the product's potential market performance, especially in light of Apple's Vision Pro not meeting expectations. Despite the involvement of major technology firms like Sony, HTC, Meta, and Google, virtual reality hardware remains a niche market. While more than half of the Fortune 100 companies use Apple's Vision Pro spatial computing headsets, and VR/AR headset use in the industrial metaverse is growing, consumer adoption remains limited. Issues such as VR sickness and the reluctance of people to wear headsets in public contribute to this slow uptake. There are ongoing efforts to address these challenges. For instance, Meta and Ray-Ban have seen some success with their partnership to integrate AI technology into stylish eyewear. However, it remains uncertain when or if virtual reality will achieve widespread consumer acceptance akin to the iPhone's impact on the smartphone market. A significant issue is the lack of a 'killer app' for the metaverse in the context of virtual and augmented reality. Developers have often adopted an 'if you build it, they will come' approach to creating VR hardware, but the practical applications of headsets beyond their initial novelty are limited. Consumers are not inclined to choose between VR headsets and more familiar devices like smartphones. In the Web3 industry, developers typically create device-agnostic metaverse experiences to generate interest in their platforms, products, and services. This approach is often driven by financial constraints, as most Web3 developers lack the resources to develop advanced hardware. The gap between the ambitious hardware goals of big tech companies and the more grounded, accessible developments by smaller Web3 firms may contribute to ongoing consumer disinterest in both sectors.