In a blog post on December 19, 2022, Andrew Bosworth, head of Meta's Reality Labs division, declared that the company remains fully committed to its metaverse vision in 2023, even after one of the hardest years in its history. Meta will continue to allocate 20% of its budget to Reality Labs and focus on AR development as well as the next-generation VR headset.
Steadfast Commitment Amid Economic Headwinds
Bosworth wrote: “I can say with confidence that after one of the hardest years in the history of the company, Meta remains as committed to our vision for the future as we were on the day we announced it.” This statement directly countered concerns that the company might scale back its metaverse ambitions due to the economic downturn. Meta (formerly Facebook) rebranded itself in October 2021 to pivot toward building a virtual space for socializing, community, and business. Bosworth argued that a long-term vision is essential to avoid “disastrous short-term thinking.”
Despite laying off 11,000 employees in November 2022, Meta continues to dedicate 20% of its spending to Reality Labs. Some investors have urged the company to abandon the metaverse project, but Bosworth defended the investment level as “making sense for a company committed to staying at the leading edge of one of the most competitive and innovative industries on earth.”
Focus on AR R&D and Hardware in 2023
According to Bosworth, roughly half of Reality Labs' resources are now funneled into augmented reality (AR) research and development. In 2023, Meta plans to ship a successor to the Meta Quest 2 headset and intensively develop the Horizon Worlds platform, including growing its communities. The company aims to maintain its leadership in the VR/AR space as competitors such as Apple and Microsoft accelerate their own metaverse initiatives.
Market observers note that Meta's continued investment signals its determination not to fall behind in the metaverse race, even as short-term returns remain uncertain. The success of this strategy will hinge on user adoption of VR/AR hardware and the maturation of the content ecosystem. As of late 2022, the Meta Quest 2 remained the best-selling VR headset, though competition from devices like the Pico 4 is intensifying.
Bosworth concluded that 2023 will be a year of major metaverse developments for Meta, with the company aiming to push the boundaries of what virtual and augmented reality can offer to consumers and businesses alike.