Meta’s Metaverse to Benefit from New Ouro Interactive Initiative

Meta is forging ahead in its mission to reinvigorate its Horizon Worlds platform. The technology giant plans to do so by launching Ouro Interactive, a new VR game studio, despite significant second quarter losses amounting to $3.7 billion. Despite such challenges, CEO Mark Zuckerberg firmly asserts his commitment to Meta’s AI and metaverse development.

Ouro Interactive is born out of Meta’s dedicated effort to renew Horizon Worlds and bounce back from significant losses. They aim to rekindle consumer engagement in the metaverse, which has seen a recent decline.

In a revealing interview, Meta’s metaverse VP Vishal Shah detailed the company’s approach towards revamping their metaverse offering. Shah mentioned the development of novel, first-party titles through Ouro Interactive. The goal is to utilize cutting-edge technology to deliver “much better-looking and immersive experiences,” as experienced by the newsletter’s author during a test run of “Super Rumble,” a new title from the studio.

“Through Ouro Interactive, we’ve elevated the standard of what can be created in Horizon in terms of visual sophistication, interaction, and entertaining gameplay,” Shah stated.

According to Shah, Meta is also strategizing to tap into the potential of billions of mobile gamers worldwide. The objective is to extend Horizon Worlds to app stores, however, the timeline for this expansion remains undisclosed. Emphasizing cross-platform play, Shah hopes the mobile version will serve as a stepping stone for non-VR headset owners, slowly shifting Horizon Worlds from being solely VR to primarily VR.

Throughout the past year, Horizon Worlds has been concentrating on accommodating more complex games and enabling developers to incorporate assets using external tools. Simultaneously, they’re also investing in generative AI technology to simplify user world-building without requiring professional 3D rendering skills.

Shah further added, “This expansion represents more than just a new world. It signifies the next phase of Horizon Worlds.”

Reiterating Meta’s commitment to AI and metaverse, Zuckerberg underscored the critical importance of these fields during an earnings call. He acknowledged their relevance as “overlapping and complementary” priorities.

“The Horizon team is presently concentrating on user retention, and we’re seeing substantial improvements in this regard,” he revealed. He also noted enhancements in avatar technology, further linking Meta’s mobile apps with their VR and mixed reality experiences.

Despite these strides, Meta recorded a Q2 2023 operating loss of $3.7 billion in its Reality Labs division, the unit behind the Quest VR headsets and Horizon Worlds platform. A press statement from Meta predicts the Reality Labs’ operating losses may escalate in 2023 due to continuous product development.

While Meta continues to experience substantial losses in its metaverse endeavors, it remains resolute about the prospective returns. In 2021, Meta’s metaverse operations reported a hefty $10.2 billion in losses.