Meta’s VR Empire Loses $19 Billion — Why the Metaverse Still Won’t Die
Meta’s virtual reality gamble just cost $19.1 billion — and the bleeding shows no sign of stopping.
Reality Labs, Meta’s VR division, reported a $19.1 billion loss in 2025, up from $17.7 billion the previous year. The unit’s fourth-quarter losses alone reached $6.2 billion, despite generating $955 million in revenue for the period.
Mark Zuckerberg acknowledged the financial strain during a January 2026 earnings call:
"For Reality Labs, we are directing most of our investment towards glasses and wearables going forward... I expect losses this year to be similar to last year."
Meta announced over 1,000 layoffs in January 2026 and plans to shut down VR studios and retire its Workrooms collaboration app. The company’s 2021 metaverse pivot, which prioritized VR and AR, has faced persistent skepticism. As AI becomes a strategic focus, the long-term viability of VR remains an open question.
