Facebook Horizon sounds a lot like the popular online game Roblox. That platform enables players — usually kids and teenagers — to explore a variety of social spaces that other people create.

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In a stunning reveal at Oculus Connect 6 this week, Mark Zuckerberg presented a first look at Facebook Horizon, a social VR experience coming to the Oculus Quest and Rift platform in 2020.

A new tech-industry battle is taking shape over the “metaverse” as companies such as Facebook Inc. and Roblox Corp. RBLX 1.70% work to shape a virtual realm that most consumers don’t yet ...