Meta opens up Quest operating system, Embracer Group to split

Mark Zuckerberg, CEO of Meta (META), took to Instagram on Monday to reveal the details of "Meta Horizon OS." Zuckerberg announced that the software platform designed to power the company's Quest virtual reality headset lineup will now be open for software developers to build applications and other hardware tailored for the operating system.

Yahoo Finance's Dan Howley breaks down the details of Meta's announcement. He also provides insights into Embracer Group (EMBRAC-B.ST) splitting into three companies.

For more expert insight and the latest market action, click here to watch this full episode of Yahoo Finance.

This post was written by Angel Smith

Video Transcript

[AUDIO LOGO]

- Mark Zuckerberg posting again on Instagram today, this time, to talk about Meta Horizon OS. Here's some of what he had to say.

MARK ZUCKERBERG: We've been building Meta Horizon OS for about a decade. We started building it off Android, and while it's still compatible, we've now built it into a much broader and more capable mixed reality and spatial computing OS.

- For more on the new Meta operating system, we're bringing in Yahoo Finance's Dan Howley. Howley, what does this mean for the VR headset space moving forward?

DAN HOWLEY: Yeah, Allie. It's actually-- it's really interesting. This is kind of a way of them ensuring that other manufacturers will also be building headsets and making sure that there's more software options available. So let's just back up and go over what an open model and a closed model is. Open model is, think of your PC, any manufacturer can build a Windows PC as long as they get the windows license, and then you're able to download whatever you want and run whatever software you want on your PC.

A closed model would be something like your iPhone where no one else can run iOS except for Apple, and the only apps you can download are available through the App Store and Apple itself. Android is open, but it's annoying to be able to get apps on there. You have to go through warnings and whatever. But what Meta is doing here is opening up its Meta Horizon's OS, it's the OS that runs its Quest 3 Quest 2 headsets, and ensuring that anyone would be able to build apps for it and that it would be on other hardware. So some of the other hardware manufacturers that Zuckerberg mentioned were the likes of ASUS, Lenovo, and Microsoft.

And he says, part of this would allow for specific types of headsets to be developed. So one thing he mentions is a headset that would be lightweight that connects to your computer, that you would be able to use for productivity. Another would be one that's also lightweight and sweat-wicking so you would be able to use it for working out. A third would be something that comes with an Xbox controller, and then you can connect to Microsoft's Game Pass and then be able to just play games directly from there. So it really is a kind of interesting move here. Seems to be a way for them to move this forward.

- And Dan, switching gears, we also saw some more moves in the gaming industry. What can you tell us about that?

DAN HOWLEY: Yeah, Embracer Group. They're a large gaming company that when interest rates were very low, were snatching up studios left and right, and they had purchased Gearbox games, and then they were selling Gearbox games, the maker of the "Borderlands" franchise. And so now what they're doing is revamping the entire corporate structure. One, splitting it into three companies, really. One is going to be dedicated towards building "Lord of the Rings" PC, "Tomb Raider" games.

Another would be for free-to-play games, things like that. Another would be for tabletop games, and it really points to the struggles of the gaming industry has been going through with the higher interest rates and with some slowdowns as far as game development goes. This is a-- developing games is a very long, arduous process, and a lot of times, there are slowdowns. And when it comes to corporations, they end up taking that and saying, look, now we're going to be losing money on this. And so Embracer breaking up into three different groups, so they say they'll be able to handle things a little better.

- Dan Howley, thank you, my friend. Appreciate it.