Meta is reportedly sticking to its plans to release more VR headsets and AR glasses in just a few years, but things are getting a bit tense for those developing the next big Metaverse products. A new report claims that Meta has told its VR/AR team to cut spending by a fifth. The company expects developers to release a new Meta Quest 4 headset, a sequel to the Quest Pro, and new AR glasses without the Ray Bans branding over the next three years.
Meta is shifting its focus to AI. If rumors are true, the company is preparing to release its Llama 400B semi-open source AI model by the end of this month. The Mark Zuckerberg-led tech giant hasn’t given up on its VR/AR-focused Reality Labs division, but The Information reports that staff have been told to cut costs. The division has spent billions of dollars on many projects, but an anonymous source told The Information that the team will need to cut costs by about 20%. That’s a big number considering the division posted a $3.85 billion loss in its most recent quarter. The company just finished a massive layoff last year that cut 10,000 staff, but it’s not yet clear how many positions at Reality Labs have been eliminated.
The company’s chief financial officer, Susan Lee, reportedly told staff that the division has lost $55 billion since 2019. This doesn’t mean Meta has given up on its metaverse dreams, but it’s unclear where the cuts will go. Meta didn’t immediately respond to a request for comment from Gizmodo.
For now, there are products still in development, with some expected to hit stores next year. The first product will be AR glasses, and will not carry the Ray Bans Meta Smart Glasses branding. Sources say the next glasses will be relatively heavy for sunglasses, weighing around 70 grams and with thick frames. The glasses themselves use the usual projection technology seen in the XReal Air 2 Ultra and similar products, with an LCD screen on the right lens.
EssilorLuxottica, the conglomerate behind Ray-Ban, didn’t like the idea of heavy glasses with their branding on them, so it’s good to see that logo gone from Meta’s AR glasses. We’re more interested in how well Meta balances the needs of wearability with battery life, power, and visuals. Meta is focused on bringing AI imaging capabilities to its AR glasses, so we can expect more of that next time.
That’s all for 2025, but in 2026 we may see a sequel to the current $500 Meta Quest 3. We’ve had fun using Meta’s latest headset, and it’s even better now with better Xbox and Steam integration, a better UI and hand tracking. Meta will reportedly release two different versions of the Quest 4, a lower-tier version and a higher-tier version.
Finally, Meta has a new version of the Quest Pro planned for 2027. The device cost $1,500 when it first came out and was unpopular with consumers who are accustomed to spending hundreds, not thousands, of dollars on a VR headset.
The new Quest Pro will compete against the Apple Vision Pro. Apple’s larger headset has also failed to impress since its launch in February, partly due to its $3,500 price tag. A less powerful and cheaper Vision device is reportedly in the works, but it may lack some of the pass-through features of the current high-end device. Currently, there is a large gap between the capabilities and size/price of these devices. The VR race is now not just between Meta and Apple, but also the willingness of each company to continue to pour money into the fading metaverse market.
