Meta announced today that it will divorce its Horizon Worlds social and gaming service—once promoted as the company’s first major step into the metaverse—from its Quest VR headset platform and digital store.

The company says it is now “shifting the focus of Worlds to be almost exclusively mobile.” The announcement is also filled with statements like “we’re doubling down on the VR developer ecosystem” that are attempting to head off any suggestion that Meta is retreating from the mixed reality space.

This is far from the first signal that big changes are happening with Meta’s mixed reality strategy. CNBC reported that Meta has lost $80 billion on investments in Reality Labs, the company’s mixed reality division. More than 1,000 Reality Labs employees were laid off in January, but don’t misread that as a total closure; more than 15,000 people were working in that part of the organization before the layoffs.

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It’s also important to note that those layoffs reportedly did not affect many people working on augmented reality, the category Meta is exploring for future smart glasses. Many of the layoffs focused specifically on internal studios making VR content, games, and experiences.

Some of the changes—like the removal of individual worlds from the VR store—are presented by the company as efforts to make the store a better discovery platform for third-party developers.

In general, Meta frames many of its recent moves as a pivot away from first-party development of VR experiences to a focus on a third-party developer ecosystem, with stats like “86% of the effective time people spend in their VR headsets is with third-party apps.”

“We’ll continue to support the third-party community through strategic partnerships and targeted investments—as we have since the beginning,” writes Meta Reality Labs VP of Content Samantha Ryan.

Meta launched a Horizon Worlds mobile app last year and found it attracted an influx of new users interested in the service’s social gaming aspects, except for the VR element. It seems that the mobile launch was successful enough to merit focusing the entire service on that platform and audience, rather than shutting it down amid the other closures of internal content projects.

As far as we know, Meta plans to continue to design, make, and sell VR hardware and maintain the storefronts that third-party developers sell on for those platforms. It won’t make much content in-house, and you don’t see much talk about the promise of an all-encompassing, transformational metaverse anymore.

Instead, Meta’s speculative investment appears focused on smart glasses, as well as AI models, technologies, and applications.

Samuel Axon Senior Editor

Samuel Axon is the editorial lead for tech and gaming coverage at Ars Technica. He covers AI, software development, gaming, entertainment, and mixed reality. He has been writing about gaming and technology for nearly two decades at Engadget, PC World, Mashable, Vice, Polygon, Wired, and others. He previously ran a marketing and PR agency in the gaming industry, led editorial for the TV network CBS, and worked on social media marketing strategy for Samsung Mobile at the creative agency SPCSHP. He also is an independent software and game developer for iOS, Windows, and other platforms, and he is a graduate of DePaul University, where he studied interactive media and software development.