Facebook's parent company, Meta, has announced that revenues generated by advertisement sales have improved fortunes, following on from three quarters of consistent slumps. It has reported an operating profit of $5.7 billion for the first quarter of 2023, this announcement arrives as a surprise to business analysts - their calculations predicted yet another decline in advertising sales for Q1 '23. Mark Zuckerberg - co-founder, executive chairman and CEO of Meta Platforms - has informed his investors that artificial intelligence-assisted systems have directed more user traffic to its social media platforms. Reels and Instagram have experienced the most user population growth, thanks to Meta's AI-driven recommendation system boosting engagement by 24% for the latter platform. The company's leader stated that AI-related operations are set to expand into generative tasking, visual creation tools (for Instagram) and business chatbots.

Meta is continuing to streamline its operations in 2023 - Zuckerberg has previously outlined plans for a year of "efficiency" with extensive plans already underway to reduce company-wide headcounts. 10,000 positions are set to be cut this year, and press coverage from last week revealed that Meta's gaming divisions being hit hard in terms of layoffs. Reports suggest that a third of the team at Ready at Dawn, an Oculus Rift-oriented development studio, were let go throughout that period. The social media and technology let go of 13,000 employees last year due to reduced profits margins. A return to better fortunes has not resulted in an immediate slowdown of headcount reduction - Meta is expected to carry on implementing its 2023 efficiency initiative.

Meta Platforms, Inc. (formerly known as Facebook) has begun implementing widespread staff layoffs across multiple company departments. The cutback operation was announced last month, with the social media giant targeting 10,000 positions (throughout 2023) in an effort to become more efficient. 13,000 staffers were released from their jobs last year, representing 13% of the workforce at the time - advertising revenues had declined in 2022 and Meta said that the change was required in order to navigate economic downturns. A repeat of that sentiment has been issued this year and two internal games development studios have been affected quite heavily by the latest layoff initiative, reports suggest. Ready at Dawn and Downpour Interactive are getting a lot of press coverage - due to former staffers divulging details of Meta's cutbacks via social media.

Thomas Griebel, a (now former) Senior engine programmer at Ready at Dawn, took to Twitter two days ago and made claim that: "One third of the studio was laid off today, including the studio head." He also observes that the studio has been shrinking over time: "Also lost some really great people just due to attrition. Think we're down almost (down to a) half since when I started in August (2022)." Former Ready at Dawn technical designer Colin McInerney has also released a string of information about co-workers being let go. Michael Tsarouhas (senior designer) and Daan van Zelst (level designer) have confirmed that they were released from their roles at Downpour Interactive.

According to The Information, Microsoft has been working on creating custom processors for processing AI with a project codenamed Athena. Based on TSMC's 5 nm process, these chips are designed to accelerate AI workloads and scale to hundreds or even thousands of chips. With the boom of Large Language Models (LLMs) that require billions of parameters, training them requires a rapid increase of computational power to a point where companies purchase hundreds of thousands of GPUs from the likes of NVIDIA. However, creating custom processors is a familiar feat for a company like Microsoft. Hyperscalers like AWS, Google, and Meta are already invested in the creation of processors for AI training, and Microsoft is just joining as well.

While we don't have much information about these processors, we know that Microsoft started the project in 2019, and today these processors are in the hands of select employees of Microsoft and OpenAI that work with AI projects and need computational horsepower. Interestingly, some projections assume that if Microsoft could match NVIDIA's GPU performance, the cost would only be a third of NVIDIA's offerings. However, it is challenging to predict that until more information is provided. Microsoft plans to make these chips more widely available as early as next year; however, there is no specific information on when and how, but Azure cloud customers would be the most logical place to start.

On the heels of a weaker than expected 2022, International Data Corporation (IDC) has lowered its forecast for augmented and virtual reality (AR/VR) headsets in 2023. Global shipments are now expected to reach 10.1 million units this year, according to the International Data Corporation (IDC) Worldwide Quarterly Augmented and Virtual Reality Headset Tracker. Despite the revised outlook, total AR/VR headset shipments are expected to grow 14% in 2023 and accelerate over the 2023-2027 forecast period with a five-year compound annual growth rate (CAGR) of 32.6%.

According to TrendForce's latest survey of the server market, many cloud service providers (CSPs) have begun large-scale investments in the kinds of equipment that support artificial intelligence (AI) technologies. This development is in response to the emergence of new applications such as self-driving cars, artificial intelligence of things (AIoT), and edge computing since 2018. TrendForce estimates that in 2022, AI servers that are equipped with general-purpose GPUs (GPGPUs) accounted for almost 1% of annual global server shipments. Moving into 2023, shipments of AI servers are projected to grow by 8% YoY thanks to ChatBot and similar applications generating demand across AI-related fields. Furthermore, shipments of AI servers are forecasted to increase at a CAGR of 10.8% from 2022 to 2026.

Meta has announced a price cut for its Quest 2 256 GB and Quest Pro VR headsets, reducing the price by $80 and $500, respectively. The latest price cut puts the Meta Quest 2 256 GB at $429 and the Quest Pro at $999.99.

Unfortunately, Meta is still keeping the price of the Quest 2 128 GB VR headset at $399.99, which now puts it in a rather difficult position. Bear in mind that the Meta Quest 2 VR headset does not feature support for microSD cards, so $30 gets you double the storage, making the slightly more expensive model a better deal.

Facing global economic headwinds, the four major North American cloud service providers (CSPs) have scaled back their server procurement quantities for 2023 and could make further downward corrections in the future. Meta is the leader among the four in terms of server demand reduction, followed by Microsoft, Google, and AWS. TrendForce has lowered the YoY growth rate of their total server procurement quantity for this year from the original projection of 6.9% to the latest projection of 4.4%. With CSPs cutting demand, global server shipments are now estimated to grow by just 1.87% YoY for 2023. Regarding the server DRAM market, prices there are estimated to drop by around 20~25% QoQ for 1Q23 as CSPs' downward corrections exacerbate the oversupply situation.

Looking at the four CSPs individually, the YoY decline of Meta's server procurement quantity has been widened to 3.0% and could get larger. The instability of the global economy remains the largest variable for all CSPs. Besides this, Meta has also encountered a notable obstacle in expanding its operation in Europe. Specifically, its data center in Denmark has not met the regional standard for emissions. This issue is expected to hinder its progress in setting up additional data centers across the EU. Moreover, businesses related to e-commerce account for about 98% of Meta's revenue. Therefore, the decline in e-commerce activities amidst the recent easing of the COVID-19 pandemic has impacted Meta's growth momentum. Additionally, Meta's server demand has been affected by the high level of component inventory held by server ODMs.

TrendForce estimates that global shipments of VR devices will come to around 8.58 million units for 2022, showing a YoY drop of 5.3%. There are three notable factors behind the decline. First, the ongoing high inflation has been suppressing the consumer demand for end products this year. Second, VR brands have either opted to not release a new product this year or pushed back the schedule for releasing a new product. Lastly, the demand for Meta's Quest devices has been dampened by a significant pricing adjustment. As for 2023, TrendForce forecasts that global shipments of VR devices will bounce back to a total of 10.35 million units and show a YoY growth of 20.6%. New products including the Sony PS VR2 and the Meta Quest 3 are scheduled for release next year, so they are expected to be a significant demand driver.

Meta has been the most aggressive in committing resources into the VR/AR market. However, the effect of its attempt to offer hardware at a low price has been quite disproportionate to its massive investments in related technologies. Due to mounting cost pressure, Meta has adjusted its pricing strategy for Quest devices. The Meta Quest 2, in particular, is now priced at US$1,499, which is more than three times its previous price. On account of this price hike and its relatively short battery life, the Quest Pro will unlikely follow the footsteps of the Quest 2 with respect to maintaining a strong shipment growth momentum. TrendForce estimates that that shipments of the Quest Pro will reach just to the level of 250,000 units for 2022. Meta will have to wait until next year, when the Quest 3 hit the market, to again see a notable positive growth in its shipments of VR devices. TrendForce currently forecasts that Meta's shipments for 2023 will total around 7.25 million units.

DPVR, a leading provider of virtual reality (VR) devices, has today announced the launch of its newest PC VR gaming headset with the introduction of the 'DPVR E4,' which is aimed at dominating the consumer market for tethered PC VR headsets. In a different category altogether from standalone VR headsets such as the Meta Quest 2 and Pico 4 devices, the DPVR E4 provides PC VR gamers with a tethered alternative that offers a wider field of view (FoV), in a more compact and lighter form factor, as well as offering a more affordable solution compared to high-price tag devices such as the VIVE Pro 2.

DPVR has been making VR headsets for seven years. Prior to E4's launch, the company's efforts were primarily directed towards the B2B market, with a specialized focus on the education and medical industries. Over the last decade, DPVR has completed three successful funding rounds, which the company has used for its research and development efforts into furthering its VR hardware and software offerings. This latest announcement from DPVR marks the company's first step into the consumer VR headset market.

Based on the latest data and research, TrendForce has further corrected down the projected YoY growth rate of whole server shipments for 2023 to 2.8%. Three factors are behind this revision. First, lead time has started to return to its usual length for most orders related to server components from 3Q23 onward. Seeing this, server OEMs and cloud service providers (CSPs) have also begun to correct the component mismatch issue by lowering demand for items that are in excess while maintaining a constant inventory level for items that are still in tight supply. This development, in turn, has reduced the flow of server orders going to ODMs. Second, the wave of demand that was generated earlier from the effects of the COVID-19 pandemic is dissipating. Hence, expansion activities have cooled off noticeably for services such as video streaming, e-commerce, etc. Among CSPs, Meta, Google, and ByteDance (TikTok) have lowered their server procurement quantities for next year. Lastly, the global economic outlook has remained fairly negative, so companies across most industry sectors have formulated a more conservative expenditure plan and scaled back IT-related spending for next year.

Leading gaming headset and accessories maker Turtle Beach Corporation today unveiled a new charging system that delivers reliable power and provides convenient storage for Meta Quest virtual reality (VR) fans. The Turtle Beach Fuel Compact VR Charging Station for Meta Quest 2 ensures that gamers' devices are fully charged and ready for hours of use. The Fuel Compact VR Charging Station provides power and storage for both the Meta Quest 2 headset and its controllers. Two 20-hour battery packs for the controllers ensure VR gamers never miss a beat, while the magnetic charging system keeps the headset and controllers in-place, charged up, and ready for deep and immersive VR gaming. The Fuel Compact VR Charging Station for Meta Quest 2 is available for pre-order from participating retailers for $79.99 (£69.99/€79.99) MSRP and launches November 21, 2022.

"We continue to grow our best-selling Turtle Beach brand beyond gaming headsets. This year, we've expanded our top-rated game controllers and simulation product families with groundbreaking and innovative new products, and now we're entering the VR category with our Fuel VR charging station," said Juergen Stark, Chairman and CEO, Turtle Beach Corporation. "Not only does the Fuel VR keep gamers' Meta Quest 2 gear powered-up and ready to use, but it also looks modern and sleek and provides an organized, space-saving solution perfect for storing everything when you're back in the real world."

ASUS today announced its first move into Web 3.0 with the launch of Art Black hole, a new NFT platform created by its wholly-owned subsidiary, ASUS Metaverse Inc. ASUS Metaverse seeks to empower content creators, and create a trustworthy and deeper experience for all NFT users. Powered by the technological expertise of ASUS, especially in cloud computing, AI, and the blockchain, ASUS Metaverse aims to create an all-encompassing metaverse experience.

Joe Hsieh, ASUS Chief Operating Officer, explained why the company has chosen to enter the metaverse: "ASUS is particularly attentive to the development of new technologies and industries, especially the potential of Web 3.0. So, we have established a new company to declare our determination to operate in the metaverse for the long term. The first step is to build out an NFT platform and invite content creators from various fields to become our new partners."

Meta today announced its next-generation AI platform, Grand Teton, including NVIDIA's collaboration on design. Compared to the company's previous generation Zion EX platform, the Grand Teton system packs in more memory, network bandwidth and compute capacity, said Alexis Bjorlin, vice president of Meta Infrastructure Hardware, at the 2022 OCP Global Summit, an Open Compute Project conference.

AI models are used extensively across Facebook for services such as news feed, content recommendations and hate-speech identification, among many other applications. "We're excited to showcase this newest family member here at the summit," Bjorlin said in prepared remarks for the conference, adding her thanks to NVIDIA for its deep collaboration on Grand Teton's design and continued support of OCP.

soundcore, Anker Innovations' premium audio brand, today announced the VR P10 Gaming Earbuds, the first audio product authorized for usage in Meta Quest 2. "We are excited that the VR P10 will be the first audio product to receive the 'Made For Meta' endorsement," said Steven Yang, founder and CEO of Anker Innovations. "Our new low-latency earbuds will be the perfect gaming accessory for Meta Quest 2 users."

The VR P10 were truly designed for video game fans. The VR P10 can pair to an included USB-C dongle that operates using a 2.4 GHz wireless connection with compatibility with the LC3 codec and when not in use, the wireless dongle can easily be stored inside the charging case. The USB-C dongle features soundcore's LightningSync wireless technology that provides a low-latency connection between the device and earbuds, reducing audio latency to 30 ms, perfect for avid gamers. Using the wireless dongle ensures that audio cues align with what's on a user's Meta Quest 2 VR headset. When playing first person shooter (FPS) games or reaction-type games, it is imperative that audio cues align with video as misaligned audio can be quite distracting to users.

Today at Meta Connect, Mark Zuckerberg joined leaders from Reality Labs at Meta and a few special guests to showcase our progress in making the metaverse a reality. We highlighted the incredible success of Meta Quest 2, discussed how virtual reality is becoming more social, and showcased innovations for fitness, gaming and work. We also revealed Meta Quest Pro, a breakthrough device that's bringing the physical and digital worlds one giant step closer together.

In recent years, we've shared a few details about our next VR device, which we called Project Cambria. Today, we're dropping the codename and introducing Meta Quest Pro. This high-end headset will begin shipping on October 25, priced at $1,499.99 USD. You can pre-order your Meta Quest Pro on meta.com. Meta Quest Pro is the first in a new line of advanced headsets built to expand the possibilities of virtual and mixed reality. Its pancake lenses fold light over several times, reducing the size of the headset while showing sharper visuals. A new, curved battery on the back helps make Meta Quest Pro a more balanced and ergonomic headset overall.

D-Link Corporation unveiled today its much-anticipated DWA-F18 VR Air Bridge, a wireless dongle designed specifically for Meta Quest 2 in an exclusive partnership with Meta. The DWA-F18 VR Air Bridge provides high-performance wireless links between Meta Quest 2 and PCs/laptops, eliminating cable clutter to provide enhanced and safer VR gaming experiences.

"While connecting Meta Quest 2 through a PC/laptop will significantly boost performance and graphic quality, most gamers are connected via the home Wi-Fi router or a dedicated gaming router. Many home Wi-Fi router connections can be unstable and are likely affected by other connected home Wi-Fi devices. Gaming routers can be significantly higher in cost, more time consuming to set up, and definitely not tuned for optimized Meta Quest 2 connectivity," explained CJ Chang, CEO of D-Link Corporation.

Fast Travel Games today announced a publishing deal with VirtualAge Games for Guardians Frontline, a strategic VR shooter set in a sci-fi setting. Featuring powerful weapons, structural crafting, and an in-game map editor, Guardians Frontline allows players to take on the role of both soldier and commander. Originally released as Guardians on Oculus App Lab, Guardians Frontline will launch for Meta Quest 2 and SteamVR in early 2023.

In Guardians Frontline, players must defend the federation from an enemy onslaught as they attempt to extract a mysterious energy source. Battlefields can be strategically secured with a blend of brain and brawn, including tactfully spawned buildings, mechs, spaceships, heavy weapons, and more. The game can be enjoyed solo in single-player mode, four-player co-op, or with up to eight friends in PvP.

Law enforcement is investigating an alleged mail-bomb attack towards the Northeastern University's VR department (Boston). A 45-year-old mailroom employee was caught in an explosion late Tuesday evening after opening a parcel containing a hard plastic case, leading the improvised explosive device to activate. Luckily, the employee survived the attack with only lacerations on his hands.

A low-tech way of delivering explosive payloads, mail bombing in the US rose to prominence through the actions of the Unabomber. Now, it seems that this delivery method is once again being weaponized for political purposes, as the package carried with a note (described as "rambling") that criticized Meta CEO Mark Zuckerberg and the relationship between university VR research and private interests. Northeastern University hosts several VR-oriented facilities, including an Immersive Media Labs Suite that "includes technologies for design, development, and exploration of virtual worlds, AR/VR/XR, and 360 video." It remains to be seen if this is a lone event or if it's a part of a more elaborate strategy of preventing change through fear.

Super Micro Computer, Inc. (SMCI), a global leader in enterprise computing, storage, networking solutions, and green computing technology, is announcing its most advanced GPU server, incorporating eight NVIDIA H100 Tensor Core GPUs. Due to its advanced airflow design, the new high-end GPU system will allow increased inlet temperatures, reducing a data center's overall Power Usage Effectiveness (PUE) while maintaining the absolute highest performance profile. In addition, Supermicro is expanding its GPU server lineup with this new Universal GPU server, which is already the largest in the industry. Supermicro now offers three distinct Universal GPU systems: the 4U,5U, and new 8U 8GPU server. The Universal GPU platforms support both current and future Intel and AMD CPUs -- up to 400 W, 350 W, and higher.

"Supermicro is leading the industry with an extremely flexible and high-performance GPU server, which features the powerful NVIDIA A100 and H100 GPU," said Charles Liang, president, and CEO, of Supermicro. "This new server will support the next generation of CPUs and GPUs and is designed with maximum cooling capacity using the same chassis. We constantly look for innovative ways to deliver total IT Solutions to our growing customer base."

Meta (Oculus) is readying its next-gen high-end VR HMD, the Meta Quest Pro. Someone left a retail-looking box behind in a hotel room, with an engineering sample. At this point we don't know if it's a Meta employee who got very sloppy with their ES, or an ISV eligible to receive an ES. It was found by a hotel employee, who also claims to be a game streamer. He claimed to have found several such boxes full of Meta samples. The Quest Pro VR appears lightweight, with no unnecessary bulk anywhere, Meta seems to have redesigned the head-straps and light-blockers of the HMD. The controllers feature a more compact appearance, as if to better with with smaller hands. Meta is expected to formally launch its "next-gen" headset at the Connect Conference on October 11, but we can't tell if this is what the company is planning to unveil.

Meta has recently announced that it will be increasing the cost of the Quest 2 VR headsets by 100 USD with the 128 GB model set to retail for 399 USD effective August 1st. The 256 GB Quest 2 will now sell for 499 USD while the various accessories and refurbished headsets will also see price increases at the same time. Meta has stated that the price increases are a result of increasing component prices and will allow the company to further invest in VR technology. This announcement comes after the Facebook account requirement were dropped and Meta will also be including a free copy of Beat Saber for all Quest 2 headset purchases until 2023.

Hopefully you were able to tune into our second annual Meta Quest Gaming Showcase today. But if not? Don't worry, we've got you covered. Below you'll find a recap of every announcement from today's show (and all of the trailers too). NFL PRO ERA, Among Us VR, Red Matter 2, Bonelab—the list goes on. Best of all: Every game we showed off today is slated to release within the next year.

We're also celebrating today's show with a sale in the Meta Quest Store. Grab games like Moss and The Walking Dead: Saints & Sinners so you can get caught up before the sequels drop later this year. And we gave away the world the showcase took place in as a new Home environment—look for Crystal Atrium under the Personalization tab of your settings menu.

Qualcomm today announced the launch of the Snapdragon Metaverse Fund, established to invest up to $100 million in developers and companies building unique, immersive XR experiences, as well as associated core augmented reality (AR) and related artificial intelligence (AI) technologies. The fund plans to deploy capital through a combination of venture investments in leading XR companies by Qualcomm Ventures and a grant program by Qualcomm Technologies, Inc. for developer ecosystem funding in XR experiences such as gaming, health and wellness, media, entertainment, education, and enterprise.

"We deliver the groundbreaking platform technology and experiences that will enable both the consumer and the enterprise to build and engage in the metaverse and allow the physical and digital worlds to be connected. Qualcomm is the ticket to the metaverse," said Cristiano Amon, president and CEO of Qualcomm Incorporated. "Through the Snapdragon Metaverse Fund, we look forward to empowering developers and companies of all sizes as they push boundaries of what's possible as we enter into this new generation of spatial computing."

Basemark launched today GPUScore, an all-new GPU (graphics processing unit) performance benchmarking suite for a wide device range from smartphones to high-end gaming PCs. GPUScore supports all modern graphics APIs, such as Vulkan, Metal and DirectX, and operating systems such as Windows, Linux, macOS, Android and iOS.

GPUScore will consist of three different testing suites. Today, the first one of these was launched, named Relic of Life. It is available immediately. Basemark will introduce the two other GPUScore testing suites during the following months. Relic of Life is ideal for benchmarking high-end gaming PCs' discrete graphics cards' GPUs. It requires hardware accelerated ray tracing, supports Vulkan and DirectX, and is available for both Windows and Linux. GPUScore: Relic of Life is an ideal benchmark for comparing Vulkan and DirectX accelerated ray tracing performance.

AR/VR device shipments revised up to 14.19 million units in 2022, with an annual growth rate of 43.9%, according to TrendForce research. Growth momentum will come from increased demand for remote interactivity stemming from the pandemic, as well as Oculus Quest 2's price reduction strategy. Microsoft HoloLens 2 and Oculus Quest 2 are first in market share for AR and VR, respectively.

According to TrendForce, the topic of the Metaverse has driven brands to actively plan for and stimulate product shipment performance. However, the AR/VR device market has yet to experienced explosive growth due to two factors: component shortages and the difficulty of developing new technologies. In addition, cosmetic and size considerations have made the more optically and technically difficult Pancake design the first choice for new high-end products. Furthermore, various embedded tracking feedback technologies key to enhancing the user's immersive experience such as eye tracking and 6DoF further affect the development progress of a new product as a whole. Since there are no new foreboding products on the horizon, TrendForce believes, no other branded products have a chance at supplanting the current mainstream status of Oculus or Microsoft until at least 2023.