Mark Zuckerberg intends to significantly reduce funding for Meta's metaverse efforts, possibly slashing the budget by 30%. This could lead to layoffs in the metaverse group as early as January. The cuts affect initiatives like Meta Horizon Worlds and the Quest VR unit.

Palmer Luckey argues that Meta's recent closure of its VR game studios is beneficial for the industry's long-term health. He believes the layoffs are part of a necessary shift away from competing with smaller developers and emphasizes that Meta still leads in VR employment.

Meta is shifting its focus to launch an ultralight Horizon OS headset named Puffin by the end of 2026, while postponing the Quest 4 series until 2027. Puffin is designed to be lightweight and controller-free, utilizing a tethered compute puck to enhance portability, but the company's evolving hardware strategy comes amid declining sales in its Reality Labs division.

Meta has released a significant update for Instagram that enhances its functionality with 3D elements and improved navigation for users of Quest VR headsets. This update aims to create a more immersive experience for users interacting with Instagram in virtual reality.

UFC and Meta have announced a multiyear partnership that will enhance fan engagement through Meta's technology platforms, including AI, VR, and social media. The collaboration aims to provide new ways for fans to access UFC content, with innovations like AI glasses and exclusive content on Meta's Threads platform. Financial details of the deal remain undisclosed.