Meta, the parent company of Facebook and Oculus, has canceled its high-end mixed reality headset, codenamed 'La Jolla'. This decision comes after months of development and amidst a challenging market for high-end VR and MR devices.

Meta's decision to cancel La Jolla is a significant setback for the company's ambitions in the VR and MR space. The project was seen as a direct competitor to Apple's Vision Pro, which launched earlier this year with a hefty price tag of $3,500.

The Apple Vision Pro, despite its advanced features, has not seen widespread consumer adoption. This lack of success likely influenced Meta's decision to reassess its own high-end headset plans.

One of the primary reasons for the cancellation was the high cost associated with the technology, particularly the micro OLED displays, which are also used in the Apple Vision Pro. Meta aimed to keep the cost of La Jolla under $1,000, but this proved to be unfeasible.

"Decisions like this happen all the time, and stories based on chatter about one individual decision will never get the real picture." - Andrew Bosworth, 2024

Despite the cancellation of La Jolla, Meta remains committed to developing VR and MR technology. The company is focusing on more affordable and practical solutions, such as the upcoming Quest 4.

The Quest 4, expected to launch in 2026, is designed to be a more accessible VR headset with a target price of around $500.

Meta is also focusing on software development, including the Horizon OS platform for third-party hardware makers. This platform aims to create a more open and accessible ecosystem for VR and MR devices.

Meta's decision to cancel La Jolla highlights the financial and market challenges faced by companies in the VR and MR space. The high cost of development and the lack of widespread consumer adoption have made it difficult for companies to achieve profitability in this sector.

Meta's Reality Labs division has incurred significant losses over the past few years, which likely influenced the decision to cancel the costly La Jolla project. The company has lost an estimated $1,000 to $1,500 per Quest headset sold, resulting in total losses of over $50 billion in the last four years.

The cancellation of La Jolla reflects the current challenges in the VR/MR market, where high-end devices have struggled to gain widespread consumer acceptance. The future of this market remains uncertain, but Meta's focus on more affordable and practical solutions suggests that the company is adapting to the evolving landscape.