Meta Faces Critical Year for the Future of Its Metaverse Initiative

2025 will determine whether Meta’s Horizon Worlds and mixed reality efforts are a visionary success or a costly misstep, according to internal communications.

Meta CTO Andrew Bosworth has labeled 2025 as a make-or-break year for the company's metaverse ambitions, particularly its Horizon Worlds platform.
Reality Labs, Meta’s AR/VR division, has accumulated over $60 billion in losses since 2020, including a $5 billion loss in Q4 2024 despite a 40% growth in sales that year.
Bosworth emphasized the importance of Horizon Worlds' mobile launch and increased engagement in mixed reality to sustain Meta’s long-term plans.
The metaverse initiative has struggled with user adoption, with Horizon Worlds’ reported user base dropping significantly since its launch and no recent updates on active user numbers.
Meta appears to be shifting focus toward AI-powered wearables and augmented reality, with smaller teams expected to drive innovation and execution in 2025.