Meta is adjusting its priority on VR hardware: shifting more resources toward wearables and AI businesses while deprioritizing consumer-grade VR hardware.

Meta's third-quarter earnings call revealed that Reality Labs generated $443 million in revenue, a 6% year-over-year decline. The drop was primarily driven by lower Quest headset sales, though strong growth in AI smart glasses helped offset the impact. Zuckerberg stated he remains bullish on VR's long-term potential but is prioritizing investments in AI for now. Meta VR Glasses are expected to launch in spring 2027, while the future positioning of the Quest platform remains unclear.