After massive layoffs in its virtual reality (VR) division, Facebook-owner Meta has now announced the closure of its Quest for Business programme.
“We are stopping sales of Meta Horizon managed services and commercial SKUs of Meta Quest, effective February 20, 2026,” wrote Meta in an update.
Quest for Business used Meta’s flagship VR headsets, with additional corporate controls available via subscription.
The move comes after Reality Labs, Meta’s VR division, saw over 1,000 jobs cut, along with the closure of three of its in-house game development studios: Armature Studio, who ported Resident Evil 4 to VR, Sanzaru Games, who created the Asgard’s Wrath series, and Twisted Pixel Games, the team behind the newly launched title Marvel’s Deadpool VR.
These make up some of the most successful games for VR, but Meta’s own titles are not the only ones affected.
Skydance Games are reported to have cancelled an unannounced Harry Potter VR game in light of the layoffs, with Meta drawing down funding for third-party games exclusive to the Quest.
Throwing money into virtual black hole
Palmer Luckey, founder of Oculus, the company Facebook bought out in 2014 to create Reality Labs, welcomed the move to cut down.
He criticised Meta for “heavily subsidising” its own games and products, saying this was “crowding out the rest of the entire ecosystem”.
Meta’s venture into VR, including its infamously flopped ‘Metaverse’ project, has lost the company a reported $70billion since its inception.
Meta still employs the world’s largest VR workforce, Luckey adds, but he believes the downsize is “a good thing for the long-term health of the industry”.
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A pivot from VR to AI
Meta is not pulling back from the idea of wearable tech altogether.
It is, for example, doubling down on its AI-enhanced glasses, particularly its runaway success Ray-Ban model.
Meta will look to double production capacity for its Ray-Ban glasses in 2026, Bloomberg reported in January.
The glasses can record video and include an AI voice assistant.
Meta also announced in November 2025 its Ray-Ban Display glasses, which will feature an augmented-reality integrated display in the lenses, allowing for video calls, live translation and AI-assisted interpretation of the camera feed.
As it pulls away from full VR, Meta will be hoping its AI-enhanced Display glasses will be the next evolution in reality-bending technology.
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