Meta's Strategic Move to Outsource VR Hardware Development for Improved Earnings

Meta goes open source

Last year, I highlighted how Meta's big bet on VR and the metaverse could get a boost from the artificial intelligence (AI) work the company is doing. Meta itself confirmed as much in December, sharing how its AI models are helping accelerate development of new features bridging the gap between the virtual and real world.

One big pain point is metaverse hardware. These days, Meta faces competition with Apple now entering the VR space with the Vision Pro. To drive more user adoption of VR devices, Meta announced opening its VR platform to third-party developers for hardware and apps.

VR metaverse operating system

Meta's open ecosystem built on Horizon OS will allow tech companies to utilize its VR headset technology and human-machine interaction capabilities to create mixed reality experiences. Developers can reach audiences and grow businesses through the Meta Horizon Store.

Realizing revenue potential

Meta aims to monetize its tech development through licensing deals with computing device companies and by opening app development and monetization opportunities. With Reality Labs reporting significant operating losses, Meta's move to outsource VR hardware development could transform the segment into a profit-generating entity.