Mark Zuckerberg’s bid for the Metaverse proved costly for the company amid a sustained bear market, as Reality Labs lost $13.7 billion in 2022.
According to Meta Earnings The company’s Metaverse division posted an operating loss of $4.28 billion in the fourth quarter, lowering its full-year total, according to the release.
With Facebook rebranding to Meta in the fall of 2021, Zuckerberg stepped up efforts to create a digital universe where people can work, shop, play and learn. However, turbulent market conditions have slowed metaverse adoption in 2022, prompting the company’s investors to curb spending on the segment.
Burn Billions in the Metaverse
Reality Labs generated $727 million in the fourth quarter, but overall revenue for the year was $2.16 billion, down from $2.27 billion in 2021. space. He said,
“Our priorities have not changed since last year. The two major technology waves driving our roadmap are AI now and the Metaverse in the longer term.”
The company shipped the Quest Pro late last year. It is touted as the first mainstream mixed reality device. Zuckerberg claimed the focus would be on “delivering a better social experience than what’s possible with today’s phones.”
A next-generation consumer headset is also expected to hit the market later this year, dubbed ‘Meta Reality,’ and the executive said it could “establish the technology as the baseline for all future headsets.” I believe there is AR glasses will also be shipped at the same time.
Zuckerberg also highlighted that there are more than 200 apps for VR devices that have generated $1 million in revenue.
keep losing?
Reality Labs losses are expected to continue. Responding to follow-up questions on the earnings call, Meta CFO girlfriend Susan Li said: Said The company expects full-year losses for the Metaverse segment to increase in 2023. The company plans to invest “meaningfully” in the sector, citing significant long-term opportunities, according to executives.
“This is a long-term investment, and the investments here are underpinned by our need to drive overall operating income growth while making these investments.”
Meanwhile, meta received approval Acquires virtual reality company Withinn from Judge Edward Davila of the United States District Court for the Northern District of California.
The tech giant was planning to acquire the company and fitness app Supernatural to acquire a major threat to the Metaverse Vision. I filed a lawsuit against Zuckerberg.
Despite denying the FTC’s injunction, a federal judge issued a temporary injunction preventing Meta from entering into a contract for at least a week.
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