When the mother company of Facebook, Instagram, and WhatsApp rebranded to Meta, this raised eyebrows, considering that the brand name “Facebook” was already popular. Some critics also viewed the change of name as a way of running away from the bad press the company was facing at the time. 

It was seen as a reinvention of Facebook to avoid the bad publicity it was getting. However, the company responded by saying that the new name reflected the direction of the social media giant: social media powered by the metaverse.

In a post on their website, Facebook wrote that the metaverse was the future of digital connections. It added that it was to be built by any person with creative ideas and a practical application by imaginative people. A couple of years have passed since the rebranding that occurred in October 2021. Therefore, questions have been raised on whether the vision that Facebook has succeeded. In this article, we will look at how Meta’s mission for the metaverse has changed social media.

Why Facebook Rebranded to Meta

One of the reasons for the rebranding was that Facebook had already acquired a host of other social media sites, such as WhatsApp and Instagram. They wanted to dissociate the name “Facebook” from these other apps like Google’s parent company rebranded to Alphabet in 2015.

Mark Zuckerberg also shared his vision for the metaverse, a virtual world powered by virtual reality and AI that consumers spend more time in. Before Facebook started using the term “Meta”, Virtual Reality was already used in the gaming environment and other areas. 

A good example of the meta-virtual world was Second Life, which started in 2003 and allowed users to create avatars and use virtual currency.

So, why is Meta so interested in VR and feels that AR and VR are the future of social media? This can be attributed to their desire to leverage the technology to increase social media users' time on their platform.

Features of the Facebook Metaverse

In one article, Zuckerberg called Meta a place to work, connect, play, shop, and learn. That meant the social media giant aimed to add these features to the metaverse. Some of the main features currently found in the Facebook metaverse are:

• Horizon Worlds: One feature added after the rebranding was a social universe known as Horizon Worlds. The metaverse world is constantly expanding and currently has over 10,000 universes and experiences. Additionally, the Meta Quest VR gear app was expanded, which offers controlled animations, VR technology, and physics to copy real-world objects. It can enable users to enjoy multiplayer music, sports, films, interactive puzzles, and more.
• Horizon venues. This AR technology enables users to attend sports games or concerts from their homes. The goal is to provide the same experience to the user as the attendees. AR technology does that through a computerized event simulation.
• Horizon workrooms. This tool has been designed to simulate the in-person workplace experience. It consists of a virtual space with business collaboration tools.

In addition to the above, there are many other metaverse user cases, such as immersive learning and shopping experiences.

Impact of the Metaverse on Other Social Media Sites

When people hear the term “Metaverse”, they often associate it with Facebook. However, Facebook is just one of the contributors to the space. It's also worth noting that there are no interconnected spaces as of this writing. For instance, the Fortnite world exists independently from Minecraft’s world, even though they are both part of the metaverse. These worlds have rules, avatars, access points, and currencies.

For instance, if you want to join the Facebook Metaverse or any other Metaverse, you will need:

• A device such as a PC or a mobile phone connected to the internet.
• A virtual reality headset.
• Digital currency.

Has Meta Transformed the Metaverse?

From the look of things, Meta's vision for the metaverse is failing or at least getting accepted at a slower pace than they had anticipated. According to a report by Business Insider, 2025 will be the year that Meta will decide if the technology is working or if it should stop any further investment in this. 

In an internal memo to Reality Lab staff, the company CTO is quoted as saying that in 2025, “It will be determined whether their work will go down as that of visionaries or a big misadventure.” The memo told the staff to ensure they drove sales, retention, and engagement on different fronts, particularly in mixed reality.

The CTO added that Horizon Worlds needs to break out of its vision of the metaverse.. Industry analysts feel this is an acceptance of the metaverse's failure to succeed as envisioned. Meta’s earnings report, which shows that in 2024, Reality Labs made a loss of $17.7 billion, supports this.

While sharing the earnings reports, Mark Zuckerberg is also reported to have said that 2025 will be the pivotal year for the metaverse. Despite the steady growth of users on Horizon and Quest, the true trajectory of Quest will be seen in 2025. One factor that has been quoted as hampering the greater usage of the software is the price of the AR/VR needed to play in the metaverse.

Meta’s Shifting Focus on AI

Despite Meta’s massive investment in the metaverse, the tech giant has started a shift toward artificial intelligence (AI). Analysts also noted that during the company’s earnings call, Zuckerberg and other top Meta executives mentioned AI a few times, while the metaverse was only mentioned four times. The company’s AR/VR headset was mentioned once.

The CTO memo also said that Meta was preparing to launch several AI-powered devices. While they didn't provide more details, the company's AI-powered RayBan smart glasses sold over one million pieces in 2024. However, the company seems unsure whether the glasses will still sell.

According to Meta CFO Susan Li, in 2025, the company will split its investment in Reality Labs between wearable products and the metaverse. She added that the lab needed to solve some deep technological challenges before selling the product on a mass scale.

Final Thoughts

The metaverse has really changed social media users' experience, from changing their online experience to transforming how they play games. The metaverse offers a lot of potential. However, Meta's vision for the metaverse didn't go as planned, and the company is cutting down on its investment in metaverse.