The VR and XR industry is undergoing a significant shift marked by widespread hardware and content abandonment, driven by escalating costs and shifting corporate strategies. Major players like Meta, Microsoft, and Magic Leap are retreating from consumer-focused VR, with support for key headsets and IPs withdrawn or scaled back. Meanwhile, enterprise hardware firms like Varjo are refocusing on B2B markets, and new AR-smart glasses from HTC and others signal a pivot toward augmented reality. Despite substantial losses—particularly Meta's $4.5 billion quarterly deficit—the industry is evolving, with upcoming events like Meta’s CONNECT 2025 poised to determine whether VR remains a viable consumer platform or transitions into a niche segment within the broader immersive ecosystem.