More than 50% of Reality Labs spending is on the research and development of AR glasses, a product line which Meta has yet to launch. The rest of the spending is on Quest headsets and the Horizon software platform, which are both still relatively early technologies far from maturity.

Reality Labs spending has been increasing every year, but according to The Information’s report Meta executives, including Mark Zuckerberg, now want to start to rein in spending and begin the long path to profitability as the XR sector matures. They reportedly told Reality Labs hardware teams to cut spending by 20% by 2026, with “much of those cuts happening this year”. […]

As The Information notes, this is far from a retreat from AR/VR for Meta, and can be seen more as a sign of a transition for Reality Labs from mainly being a research and development division to eventually one day becoming a profitable business.