Meta, previously Facebook, is strategically positioning itself in the emerging market of mixed reality as it shifts its focus from virtual reality (VR) to immersive virtual worlds. With Apple entering the space, Meta is adjusting its strategy and embracing healthy competition, leading to increased optimism and excitement within the industry.

The Shift to Mixed Reality

Meta, known for its popular Quest line of VR headsets, is now targeting mixed reality, which involves overlaying virtual images onto real-world surroundings. This move is driven by the growing interest in immersive experiences. The Meta Quest 3 Vision Pro, priced at $500, will compete with Apple’s Vision Pro, priced at $3,500.

Driving Future Growth

While Meta’s Reality Labs division currently contributes less than 1% to its overall revenue, the company believes that the broader vision of immersive virtual worlds will drive future growth. However, Meta faces the challenge of expanding the appeal of its Quest devices beyond a niche market and gaining widespread adoption among consumers.

Apple’s Entry Sparks Optimism

Apple’s entry into the mixed reality market has generated optimism among Meta executives. They see Apple’s presence as a positive force that will attract more consumers and generate increased interest in headset devices overall. Meta executives, including Mark Zuckerberg and Chief Technology Officer Andrew “Boz” Bosworth, consider Apple to be a strong competitor that can significantly benefit the market.

Meta’s Strategy

Meta is confident in Apple’s launch and believes it can enhance its ambitious $50 billion metaverse initiative. The company experienced a significant increase in shipments of Quest devices in the fourth quarter of 2022, ranging from 2 million to 2.7 million units, compared to the previous year. Meta’s strategy revolves around offering the Quest 3 Vision Pro as a more affordable alternative to Apple’s product, making mixed reality accessible to a wider audience.

Challenges and Continuous Innovation

Despite Meta’s optimism, challenges lie ahead. Meta’s Reality Labs division is projected to incur losses of $115 billion between now and 2030. This highlights the need for Meta to continuously innovate and adapt to remain competitive in a rapidly evolving market.

A Broader Vision

The strategic shift to mixed reality signifies a broader vision for Meta. The company changed its name in 2021 to reflect its commitment to immersive virtual worlds. Meta’s executives recognize the value of having strong competitors like Apple, as they drive innovation and market growth.

The Future of Mixed Reality

As Meta and Apple compete for dominance in the mixed reality space, consumers can expect technological advancements and improved accessibility to immersive experiences. With Meta’s focus shifting towards mixed reality and Apple’s entry expected to generate more interest in headset devices, the future of virtual and augmented reality is poised to become even more exciting.


Meta’s strategic shift towards mixed reality, along with Apple’s entry into the market, has sparked optimism and renewed competition. As the race for dominance in the mixed reality space intensifies, consumers can anticipate a wider range of options and improved accessibility to immersive experiences. The potential benefits of this healthy competition are certain to shape the future of virtual and augmented reality, ushering in a new era of technological innovation.