Virtual Reality Headset for Sale

Facebook is getting out of the virtual reality headset for sale film business.

The social networking giant said Thursday that its Oculus virtual reality unit would shut down Story Studio, a virtual reality film studio that debuted in 2015 with hires from big entertainment companies like Pixar. The studio's closure is effective as of Thursday, said an Oculus spokesperson.

With the studio closure, Facebook will no longer make in-house VR shorts and animations, and will instead “support more external production,” Oculus vice president of content Jason Rubin wrote in a blog post.

Facebook created the studio to help jumpstart the nascent VR industry by creating its own VR films and make the technology more appealing beyond video gamers. Despite initial hype, virtual reality has failed to gain a big following, largely because of the expensive headsets required to watch the films and a lack of compelling content.

Sales of VR headsets like Facebook’s Oculus Rift and the HTC Vive, both of which went on sale a year ago, are slower than expected, analyst have said.