Meta's VR strategy shifted dramatically this January, closing most first-party studios like Within and Camouflaj. The company also slashed its Oculus Publishing team and effectively ended its Meta Horizon Start Program funding. This follows years of moving fast and breaking things, a pattern that has now cost the VR industry dearly.

Developers report the $60 million funding program is likely finished, causing immediate fallout. Cloudhead Games laid off 70% of its staff, and Skydance canceled a Harry Potter VR game. The move destroys the goodwill Meta built as VR's 'savior,' irreparably damaging the ecosystem that produced indie hits through its incubator.

Meta isn't exiting VR hardware, but it's abandoning the 'Nintendo' vision for a Valve-style marketplace approach. The company will focus on its Horizon OS and smart glasses, leaving big-budget titles like *Assassin's Creed Nexus VR* without funding. Developers now question whether to build for Meta platforms at all.