Meta Cuts 10% of VR Staff to Focus on Mobile Game Development
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
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Source: Newsfilter
- Layoff Announcement: Meta plans to cut about 10% of its workforce, impacting over 1,000 jobs in virtual reality, indicating a significant shift in its metaverse strategy that may affect hardware production capabilities.
- Strategic Shift: The company is reallocating resources from VR to artificial intelligence, raising its 2025 capital expenditure forecast to between $70 billion and $72 billion, reflecting a strong commitment to AI technology and anticipated future growth.
- Mobile Game Development: Meta is courting Roblox developers to create mobile experiences for Horizon Worlds, aiming to attract a younger audience by emulating Roblox's success, despite Horizon's active user base being significantly lower than Roblox's.
- Market Challenges: Meta's Reality Labs has logged over $70 billion in cumulative losses since 2020, with the latest quarterly report showing a $4.4 billion loss, highlighting ongoing challenges in the VR space and an urgent need to pivot towards mobile markets.
Analyst Views on META
Wall Street analysts forecast META stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for META is 832.06 USD with a low forecast of 655.15 USD and a high forecast of 1117 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
43 Analyst Rating
36 Buy
6 Hold
1 Sell
Strong Buy
Current: 641.970
Low
655.15
Averages
832.06
High
1117
Current: 641.970
Low
655.15
Averages
832.06
High
1117
About META
Meta Platforms, Inc. is building human connections, powered by artificial intelligence and immersive technologies. The Company's products enable people to connect and share with friends and family through mobile devices, personal computers, virtual reality (VR) and mixed reality (MR) headsets, augmented reality (AR), and wearables. It also helps people discover and learn about what is going on in the world around them, enabling people to share their experiences, ideas, photos, videos, and other content with audiences ranging from their closest family members and friends to the public at large. The Company's segments include Family of Apps (FoA) and Reality Labs (RL). FoA segment includes Facebook, Instagram, Messenger, WhatsApp and Threads. RL segment includes its virtual, augmented, and mixed reality related consumer hardware, software and content. Its product offerings in VR include its Meta Quest devices, as well as software and content available through the Meta Horizon Store.
About the author

Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.





