Recently, the news about Meta has been in the global XR circle, and it has been quite hot. Recently, foreign media reported that Meta boss Zuckerberg has issued a clear instruction to the AR/VR hardware team, requiring the 20% spending reduction target to be achieved by 2026, and most of the reduction tasks need to be completed within this year.
On the one hand, Meta is rumoring that it is going to drastically cut the expenses of the XR team, and on the other hand, there are also rumors that Meta is going to make a big investment. According to the latest news from foreign media, Meta wants to invest billions of euros in Ray-Ban glasses manufacturer Essilor Luxottica, and is expected to acquire 5% of the latter's equity. At present, this investment plan is still in the planning stage.
If the above news is true, Meta's XR team may usher in a lot of changes. However, under the change, Meta may usher in an XR hardware explosion in the near future. For example, recently, foreign media reported that Meta plans to launch a smart glasses equipped with a head-up display (HUD) next year; At the same time, Meta also plans to launch two Meta Quest 4 headsets in 2026 - standard and advanced, codenamed "Pismo Low" and "Pismo High" respectively.
In addition, there is also the affordable version of Meta's Quest 3, which has been widely predicted to be released in the near future, and AR glasses that are in full swing. In other words, in the next two years, Meta may usher in a hardware explosion at the entire XR level, including smart glasses, AR glasses, Quest headsets and other new products will be launched.
01. Shrinkage and large investments
Meta may be undergoing a new round of "big changes" in XR. In recent days, there have been frequent reports of Meta's spending cuts and acquisitions, pointing to Meta's changes in XR.
A few days ago, according to The Information, Meta CEO Mark ·Zuckerberg has issued clear instructions to the AR/VR hardware team, requiring a 20% spending reduction target by 2026, and most of the reduction tasks need to be completed within this year.
It is worth noting that since Meta acquired Oculus in 2014, and especially since the separate disclosure of Reality Labs' financial reports in the fourth quarter of 2020, it has invested more than $50 billion in advancing its metaverse vision, and this figure does not include the investment in early acquisitions and financial consolidation. When total spending is taken into account, that figure could be closer to $100 billion.
Meta's investment in the metaverse is huge, and it is its own power that continues to push the metaverse to a new level. In 2014 alone, Meta spent $2 billion to acquire Oculus. Although Meta boss Zuckerberg is as optimistic about the prospects of the metaverse as ever, as a company is still for profit, Meta is no exception.
Cutting departmental spending may be a necessary measure for Meta to improve the efficiency of the use of funds. At the same time, Reality Labs has also undergone a restructuring over the past year, eliminating a series of middle and senior management positions, including "more than a dozen directors and vice presidents." Optimize hardware teams for the same reason.
In this regard, The Information emphasized that this series of adjustments is not a signal of Meta's withdrawal from the AR/VR field, but marks that Reality Labs is entering a critical transition period from high investment to profitability goals.
Now, there is a sudden news that Meta's AR/VR hardware team has been asked to cut spending by 20% by 2026, if the news is true, Meta's XR team may face important changes in the future, and the key to reducing costs and increasing efficiency may be the optimization of personnel.
On the one hand, Meta is rumoring that it is going to drastically cut the expenses of the XR team, and on the other hand, there are also rumors that Meta is going to make a big investment.
According to foreign media reports, Meta is negotiating with Ray-Ban manufacturer Essilor Luxottica to acquire a minority stake in the company, which is expected to be about 5%. At present, this investment plan is still in the planning stage.
However, it was revealed that if the deal is finalized, based on EssilorLuxottica's current market capitalization of up to 86.5 billion euros, the transaction could reach the milestone of 4.33 billion euros (about 4.73 billion US dollars). Meta has been in talks with EssilorLuxottica to deepen the existing cooperation between the two sides, according to some people familiar with the matter.
It is reported that Essilor Luxottica is a high-end eyewear group from Italy and France, with a number of well-known brands such as Ray-Ban and Oakley, and its design, manufacturing and distribution capabilities are well-known worldwide. The Ray-Ban Meta smart glasses are the result of the combination of Meta and EssilorLuxottica. This product has also become a popular item in the global smart glasses.
02. Or usher in the XR hardware explosion period
If the above news is true, Meta's XR team may usher in a lot of changes. However, under the change, Meta may usher in a hardware explosion in the near future.
A few days ago, according to The Information, Meta plans to launch a smart glasses equipped with a head-up display (HUD) next year, but this new product will not follow the brand name or design elements of Ray-Ban.
According to the data, Ray-Ban Meta smart glasses are known for their powerful functions, such as hands-free shooting, calls, music playback and real-time live streaming to Messenger, WhatsApp and Instagram, especially in the United States and Canada markets, and also integrate Meta AI conversation assistants.
According to the news, the upcoming Meta next-generation glasses (codenamed Hypernova) will be significantly different from existing products, and its core highlight is the built-in HUD technology, which can provide users with functions such as notification display, QR code scanning and real-time text translation, although this is not an AR experience, but it is a highly integrated contextual display solution.
Notably, Wayne Ma and Kalley Huang of The Information have revealed that the Hypernova project has decided not to work with Ray-Ban Eyewear's parent company, Essilor Luxottica, due to the latter's alleged hesitation in design.
According to reports, the Hypernova will be designed with a thicker frame to achieve the HUD function, which may sacrifice the wearing comfort and style of some consumers, while its weight will also climb to about 70 grams, which is heavier than the 50 grams of Ray-Ban Meta glasses and the 30 grams of traditional glasses.
In addition, Meta's AR glasses are also in full swing of development. Recently, Meta boss Zuckerberg revealed in an interview that the next generation of AR smart glasses that Meta is developing will far surpass Ray-Ban products, which is expected to completely subvert the concept of traditional glasses.
At the same time, a few days ago, Meta Chief Technology Officer Andrew Bosworth also said that Meta AR glasses have a clear display effect and a wide field of view. It is currently only for internal use and is still in the prototype stage. It's amazing and the culmination of years of hard work and a huge amount of investment. "Meta sells visions of augmented reality, not products," he claimed. ”
Prior to this, Meta had already teased its next major product, the first AR glasses. To celebrate the 10th anniversary of its RealityLabs division, Meta released a blog post in which Meta mentioned the AR glasses.
Meta said that Quest3 provides an engaging mixed reality experience, allowing users to fully immerse themselves in the physical world and digital content at the same time, while Ray-Ban Meta smart glasses allow users to enjoy the practicality and entertainment of MetaAI, and AR glasses will integrate these two technology paths to achieve the "best of both worlds".
Now, Meta boss Zuckerberg has indicated that the company is developing the next generation of AR smart glasses, which is even expected to completely subvert the concept of traditional glasses, and has progressed to the stage of showing a prototype.
Regarding Meta's AR glasses, there is no doubt that although the words of Meta boss Zuckerberg make people have more expectations for Meta's AR glasses, they are also more mysterious.
In addition, in addition to the recent frequent mention of Meta's affordable version of the Quest 3, which is not far from the release, Meta has recently been exposed to new headset news. According to The Information, Meta plans to launch two Meta Quest 4 headsets in 2026 - standard and advanced, codenamed "Pismo Low" and "Pismo High" respectively.
The news comes from at least three insiders involved in the development of the Quest 4, and is confirmed by veteran journalists Wayne Ma and Kalley Huang, who have accurately predicted the release of Meta's headset and smart glasses on several occasions in the past.
According to the news, in 2027, Meta is also expected to release a high-end Quest headset codenamed "La Jolla", which is widely considered to be the predecessor of the Quest Pro 2. According to Wayne Ma and Kalley Huang last month, the development of the project quietly started in November last year, and the Verge has also reported related news, further confirming the imminent launch of this high-end collection.
Through the above, it is not difficult to see that in the near future, Meta may usher in a hardware explosion period at the entire XR level, including smart glasses, AR glasses, Quest headsets and other new products will be launched.