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Meta axes VR jobs as Reality Labs flounders: Over 100 workers, including staff behind the 鈥淪upernatural鈥� fitness app, were cut as the firm pivots away from costly metaverse efforts.

Despite a $5 billion quarterly loss in the division, Meta remains committed to VR, even as rivals like Apple, Google, and Samsung close in.

As Samsung and Google develop mixed-reality glasses, Apple and Meta refine their ecosystems. Cheaper, lighter devices could finally push AR/VR into the mainstream.

Despite economic headwinds and challenges faced by major players, AR and VR adoption is on the rise.

The smartphone remains Gen Z鈥檚 favorite device, as it鈥檚 the quickest way to access digital video and social media. But adoption of CTV and VR continues to rise.

Walmart and Delta have adopted VR for effective, immersive employee training, though high upfront costs may deter smaller companies.

Retailers invest in virtual reality, mobile apps, and AI to improve the customer experience: Walmart, Levi鈥檚, and Family Dollar are among the companies turning to tech to boost sales.

The news: Samsung confirmed it will launch a new XR (extended reality) device in the second half of 2025, likely the long-teased Project Moohan, a device capable of augmented reality (AR) and virtual reality (VR), developed in collaboration with Google and powered by Android XR, per TechRadar.

A music-focused metaverse could also spur VR headset sales as companies like Google and Samsung are looking to bring down headset costs as they compete with Meta Quest and Apple. Key takeaways: Infinite Reality鈥檚 aggressive expansion into shopping and music demonstrate the resurgence of spending on virtual reality.

AR and VR Are Reshaping the Future of Consumer Engagement (蘑菇AV subscription required). Tech Trends to Watch in 2025 (蘑菇AV subscription required). Note: Data was provided to 蘑菇AV by CivicScience. This data is being featured as part of our special coverage of AI in Commerce. Methodology: Data is from a January 2025 蘑菇AV and CivicScience study, conducted by CivicScience.

Advertisers can benefit from targeting precision, immersive ad formats leveraging AR/VR, and the chance to more successfully engage fans before, during, and after live events.

Expanding into robotics risks further straining Meta鈥檚 resources beyond AR/VR wearables. Meta, which gained its AR/VR expertise by acquiring Oculus, could opt to partner or buy robotics startups to leapfrog the competition, but that would also add market pressure to succeed in an all-new segment.

It鈥檚 a good time to pivot: As Google and Samsung push lower-cost VR devices and Vision Pro fades from relevance, pivoting to more affordable smart glasses may be Apple鈥檚 smartest move. Unlike the one-size-fits-all Vision Pro, smart glasses in varied styles and finishes align with Apple鈥檚 fashion-first ethos鈥攁nd open the door to broader pricing tiers.

Take a tech-first approach to engage younger customers by incorporating VR, AI, and gamification. Focus on the local community through charity events, sustainability initiatives, and networking opportunities. Our take: Sixty-two percent of Gen Zers prefer in-person customer service over anything else, and over 28% would choose an FI based on its branches鈥� proximity to their home.

Acquisitions or partnerships with AR/VR developers could help gaming companies expand metaverse opportunities to more consumers. Only 8% of gamers have used a metaverse space, per GWI鈥攖he same percentage as in Q4 2022. However, 57% of those who have tried a metaverse experience would be interested in playing a game there.