Meta Scraps Plans for High-End Mixed-Reality Headset
Meta has decided to cancel the development of its high-end mixed-reality headset, La Jolla, which was initially intended to compete with Apple's Vision Pro. The decision was made following a product review meeting with CEO Mark Zuckerberg, where it was concluded to halt the project at Reality Labs. La Jolla was designed with advanced micro OLED displays, similar to those in the Vision Pro, but encountered significant cost challenges in its development. The goal of pricing the device below $1,000 proved difficult due to the expensive display technology.
This move also reflects broader market trends, as both Apple's Vision Pro and Meta's own Quest Pro have faced challenges due to their high prices. Despite this setback, Meta remains committed to the VR and MR market, shifting its focus to more affordable options such as the rumored Quest 4 and a budget-friendly version of the Quest 3. Additionally, Meta is reportedly working on developing new AR glasses, set to be unveiled at the upcoming Connect event on September 25.
Andrew Bosworth, Meta's CTO, emphasized that such decisions are typical in tech development, with multiple prototypes constantly in progress. The company is also exploring the possibility of licensing its Horizon OS to third-party hardware makers, with potential deals in progress, although a previous agreement with LG did not materialize. Meta may revisit the high-end headset concept if consumer interest in the space grows; however, the Quest 4 is anticipated to launch in 2026.
Key Takeaways
- Meta cancels development of its mixed-reality headset, La Jolla, originally planned for 2027.
- The device aimed to compete with Apple's Vision Pro but encountered high costs due to micro OLED displays.
- Meta's decision follows sluggish sales of Apple's $3,500 Vision Pro and its own $1,500 Quest Pro.
- The company is not exiting VR/MR; rumors suggest a Quest 4 and budget-friendly Quest 3 are in the works.
- Meta explores licensing Horizon OS to third-party hardware makers, with potential deals like Jio.
Analysis
Meta's decision to scrap La Jolla reflects cost pressures and market realities, impacting suppliers and competitors like Apple. In the short-term, this shift focuses Meta's attention on more affordable VR/MR devices, potentially bolstering market share. In the long-term, licensing Horizon OS could diversify revenue streams and expand ecosystem influence. Market dynamics and consumer affordability remain crucial, guiding Meta's strategic pivots in the evolving VR/MR landscape.
Did You Know?
- Micro OLED Displays:
- Explanation: Micro OLED displays, smaller and more energy-efficient than traditional OLEDs, are commonly used in high-end VR and MR headsets due to their high pixel density and low power consumption, enabling sharper images and longer battery life. However, their complex and expensive manufacturing process presents a significant cost factor in the production of devices like Meta's La Jolla and Apple's Vision Pro.
- Horizon OS:
- Explanation: Horizon OS is Meta's proprietary operating system for its VR and MR devices, providing a platform for users to interact with digital content and each other in immersive environments. Licensing Horizon OS to third-party hardware makers aims to expand Meta's ecosystem and create a more diverse range of compatible devices, increasing market penetration and user base.
- Mixed-Reality (MR):
- Explanation: Mixed-Reality (MR) blends real-world and digital elements, allowing users to interact with virtual and physical environments simultaneously. Devices like Meta's La Jolla and Apple's Vision Pro aim to provide seamless integration of digital and physical worlds for applications ranging from gaming to professional training and collaboration.