Meta’s recent earnings report revealed that its virtual reality division lost over $19 billion in the last year.
Earlier this month, Meta announced it would scale back its gaming presence, laying off 10% of Reality Labs staff. This led to the supposed cancellation of the Harry Potter VR game, as well as the Batman Arkham Shadow sequel. Now, a new report reveals just how much they have lost in this business.
Meta Faces Heavy Losses Across VR Division
According to a TechCrunch report, Meta’s latest earnings reveal that its virtual reality division incurred a $19.1 billion loss in 2025, up from a $17.7 billion loss the previous year. Of this total, $6.2 billion was lost in the fourth quarter alone. Mark Zuckerberg also mentioned that the company will focus most of its investments on “glasses and wearables” for the Reality Labs division moving forward.
The CEO stated that there will be an increased focus on Horizon, Meta’s VR social ecosystem, trying to make it a “massive success on mobile.” The goal is to turn virtual reality into a profitable ecosystem. Zuckerberg also mentioned that losses are expected to remain similar this year; however, he believes that the losses in 2025 are likely to be the “peak” and will gradually decrease thereafter. Interested readers can find the complete statement below:
“For Reality Labs, we are directing most of our investment towards glasses and wearables going forward, while focusing on making Horizon a massive success on Mobile and making VR a profitable ecosystem over the coming years. I expect Reality Labs losses this year to be similar to last year, and this will likely be the peak, as we start to gradually reduce our losses going forward.”
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Yeah Facebook gaming was a miss. Crazy Oculus was the OG now nothing really.