The Metaverse That’s Lost Billions is Set to Look Better

Metaverse Planet September 25, 2025Last Updated: September 25, 2025

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Meta is powering up Horizon Worlds with a new game engine and AI-powered Horizon Studio. Now, Meta’s universe is faster, more realistic, and more accessible for creative producers.

Meta is preparing to enhance the user experience for its social VR platform, Horizon Worlds, with significant updates. The company announced a new game engine that will boost the platform’s graphical performance and Meta Horizon Studio, which will make it easier for content creators to build their own VR worlds.

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Content Creation Made Easier

The metaverse vision, shaped under Meta’s Reality Labs unit, has incurred substantial costs for the company, yet it remains CEO Zuckerberg’s dream project and continues to receive new investments. One of these investments, Meta Horizon Studio, stands out as an editor enabling content creators to build virtual worlds. Currently, creators can use generative AI tools to produce elements like texture and sound design on the platform. Later in the year, an AI assistant integrated into the editor will guide developers when designing new worlds and editing the features of AI-powered NPCs (Non-Player Characters). It’s worth noting that AI NPCs were added to the platform last August. A demonstration during Connect 2025 showed a developer requesting changes like a new environment and NPC behaviors via an AI chatbot, indicating that the extra features are actively working.

Graphics Are Improving

The Horizon Engine, which powers the new metaverse environments, is expected to offer better graphics, faster performance, and more advanced VR worlds, according to Meta. It also stands out with its high concurrency capacity, allowing more users to interact simultaneously. It can now support over 100 people in a single space—five times more than the previous engine could handle.

While Horizon Worlds has expanded from VR to mobile platforms, it is struggling to see this expansion reflected in its user base. Meta also launched a $50 million fund earlier this year to encourage metaverse content production. The company’s goal is to ensure more creators contribute to the metaverse ecosystem, thereby growing the audience.

They haven’t succeeded yet, but investments continue. As mentioned, the company’s metaverse vision is progressing within the Reality Labs unit. This unit also includes smart glasses and VR/AR headsets. It’s a known fact that the company is satisfied with these two products. However, the Reality Labs unit has never generated a profit since the last quarter of 2020. The cumulative loss has now reached $70 billion.