Meta rumored to halt development of high-end mixed reality gear MR, is the metaverse dream shattered?

Do you remember the global outbreak of the COVID-19 pandemic at the end of 2020, when major cities were locked down for epidemic prevention, and work and entertainment shifted from offline to online? The term "Metaverse" suddenly became a hot topic of the year, and equipment and glasses for entering the Metaverse became in high demand. Facebook even changed its name to Meta to show its ambition for this market.

Let's rewind to 2018, when Facebook faced a scandal due to the Cambridge Analytica data breach, resulting in a sharp decline in users, ads, and traffic. The younger generation turned away from Facebook, finding it boring and shifting to TikTok. Facebook decided to actively transform and focus on the Metaverse and gaming as its main markets for future growth. Mark Zuckerberg, the founder of Facebook, is preparing to bring all existing Facebook users to the Metaverse for social interaction, with the vision of turning Meta into a virtual Metaverse for both work and socializing.

Recently, according to a source on Linkedin, Meta is reportedly abandoning the development of high-end mixed reality equipment. Initially planning to compete with Apple's $3,500 Apple Vision Pro, Meta is now developing an advanced Meta Quest equipment with similar specifications but more affordable pricing, targeting consumers who are avid Metaverse gamers with high purchasing power. However, with Apple Vision Pro sales falling below expectations, Meta is rumored to discontinue the development of high-end, low-cost Mixed Reality equipment.

Apple Can't, Meta Can't Either

Six months after the launch of Apple's Vision Pro, the $3,500 toy for wealthy dads fell short of expectations. Vision Pro is positioned as a "personalized walking smart computer gear."

Vision Pro is not another Meta Quest. Vision Pro enhances the Augmented Reality experience. Meta's Oculus/Quest also has Mixed Reality entertainment features. However, Meta is not originally a computer company, transitioning from social media to metaverse gaming is essentially starting a new company.Fortune also pointed out that Mark Zuckerberg lost $46.5 billion in the metaverse division, apart from burning cash, the technology barrier cannot surpass Apple, and it's even embarrassing that they have to develop devices that meet Apple's specifications.

Vision Pro itself is an original equipment developed by Apple, naturally carrying inherent advantages, supporting Apple's iCloud cloud database and AI machine learning functions, directly connecting to Apple devices. Meta Quest users need to download additional programs to connect to Apple computers. If Apple raises the technology barrier in the future, preventing Quest from connecting to Apple devices, even if Meta develops new hardware and software systems, they cannot win in the device battlefield.

Immersive Experience Comparison

VR enthusiasts slightly favor Vision Pro over Meta Quest, mainly for the UI interface and smooth hand-touch experience. Cooking while wearing glasses feels good, as you can have the recipe next to you while cooking.

Users of Vision Pro are like creators, they can "handcraft" the world they see inside their headsets, placing applications, files, and images in their ideal space and position, turning their hands into a baton, voice control can summon applications and games at will, and AI voice recognition can learn user needs.

The experience of Vision Pro is similar to a lucid dream; during a lucid dream, you can control the plot and storyline of your dream. Youtuber Ryan Trahan tested the headset for 50 hours, during which he tried to do daily activities like drawing and walking. He found that many apps are not compatible with Apple's Vision Pro yet; you can't call an Uber, but playing AR games is a good experience, as you can catch fairies and beasts with your hands.

The Uncertain Future of Metaverse, AI Will Be Key

Meta founder Mark Zuckerberg actively engages with Huang Ren Xun; without advanced AI chips, there would be no hardware devices. Vision Pro has a killer app called Persona for facial recognition, which can turn the user's face into an avatar for scenarios like work meetings and games, generating a new avatar based on AI to replace one's actual face. For those who prefer not to show their faces but still need to be present, using a generated avatar based on their own face can be seen as a form of self-representation. Upgrading AI chips and systems can provide users with a more personalized experience.

Meta faced a lawsuit from Texas law enforcement for conducting facial biometric recognition on users without authorization, leading to a $1.4 billion settlement. Meta announced the closure of Face Recognition in November 2021.

Meta's predecessor Facebook initially positioned itself with real-name policies and real photos as user avatars. After multiple lawsuits, Meta allowed users to DIY their avatars, choosing their own images. The downside is the lack of customization; avatars only show the head and upper body in virtual scenes, disappearing from the waist down once they leave their desks, causing user complaints.

Many metaverse gaming projects face even greater technical challenges before development, as hardware and system specifications are constantly evolving, making game development even more challenging.

Besides metaverse games, many apps have not yet developed specific features for virtual reality scenes. With other application scenarios being unknown, the overall market prospects for the Metaverse are uncertain.

Meta is slowing down its pace in the metaverse, and the actual sales volume of Vision Pro will not be revealed until the end of the year. Will the tech industry overcome this winter?