Meta may reconsider its approach to funding third-party apps, as it’s allegedly reduced support for select virtual reality game developers and shifted its attention towards non-gaming applications.
According to a report by Meta, the company is shifting towards a more discerning approach when allocating funds to stock its Horizon Retailer for Quest.
According to anonymous sources within Meta, the company is allegedly redirecting resources away from external developers whose applications are experiencing relatively lower engagement, instead prioritizing support for apps that have demonstrated greater popularity and growth. Maintaining a strong online presence, Meta plans to revitalize its portfolio of lifestyle-centric apps, akin to fashion, beauty, and music. The startup’s claims suggest that funding will become available at an unspecified point in the future through an accelerator programme, which provides seed-stage investment.
Meanwhile, two VR builders that had achieved success after securing funding were forced to cut their workforce due to the subsequent funding withdrawal.
Amidst a reported downsizing, Netherlands-based studio Monks has slashed its workforce by half, leaving approximately 50 individuals to focus on producing content for the company’s social media app. French-headquartered Atlas V, known for its work on and has reportedly downsized by half, according to sources.
This marks the end of Meta’s first-party VR studio Prepared at Daybreak, established in August, responsible for the popular franchise.
Prior to that, the studio had spent many months negotiating and ultimately resolving a contentious legal dispute with the United States Federal Trade Commission (FTC) regarding its acquisition of Inside, the developer of popular virtual reality fitness app.
