Horizon Worlds, the flagship metaverse platform developed by Meta, is currently facing significant challenges in achieving its internal efficiency goals. According to a detailed review by The Wall Street Journal, which examined internal corporate documents, it appears that the platform is falling short of expectations in several key areas.

Initially, Meta had ambitious targets, aiming for Horizon Worlds to reach 500,000 monthly active users by the end of the year. However, current figures indicate that there are fewer than 200,000 users actively engaging with the platform. Alarmingly, the data indicates that a majority of users do not return to Horizon Worlds after their initial month, and the user base has been on a steady decline since spring, as reported by the Journal.

Furthermore, the report highlights that only 9% of virtual worlds within the platform are visited by at least 50 individuals, while the majority remain completely unvisited. This lack of engagement raises concerns about the platform’s viability and user retention strategies.

This troubling report coincides with a significant downturn in Meta’s stock performance, as user numbers continue to dwindle and advertisers reduce spending on the platform. So far this year, Meta’s shares have plummeted by 62%, raising questions about the company’s overall strategy and future direction.

In an effort to pivot beyond social media, Meta underwent a rebranding from Facebook last year. CEO Mark Zuckerberg has expressed a strong interest in expanding into the metaverse—a digital universe where users can interact, work, and play together in immersive environments.

To facilitate this vision, Meta developed Horizon Worlds, a complex network of virtual spaces where users can connect and engage with one another through their avatars. Access to Horizon is primarily through Meta’s Quest virtual reality headsets, which aim to create an immersive social experience.

To generate excitement around the metaverse, Zuckerberg recently introduced the Meta Quest Pro, the latest iteration of the company’s virtual reality headset, during Meta’s Connect conference. Priced at $1,500, this advanced device boasts cutting-edge technologies, including a sophisticated mobile Snapdragon chip that enhances performance and user experience.

A spokesperson for Meta reassured The Wall Street Journal that the company is committed to improving the metaverse experience, emphasizing that this initiative was always intended to be a multi-year project. However, representatives from Meta did not provide an immediate response to CNBC’s inquiries for further clarification.

Additionally, Meta has announced plans to launch a web-based version of Horizon for mobile devices and computers later this year; however, specific release dates have yet to be disclosed by the company.

For more in-depth information, read the full report from the Journal here.