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Meta loses because of metavers

 

metavers


According to the latest report, metavers are causing losses to meta


In its financial report for the second quarter of 2023, Meta reported an 11% rise in revenue. However, in terms of VR/AR services and goods, the Metavers segment suffered considerable losses.


More specifically, during the second quarter of this year, sales of VR/AR products brought in $276 million in revenue for the Metavers sector. However, losses during the same period totaled nearly $3.7 billion.


Design and development of Metavers products based on virtual and augmented technologies are handled by Meta's research & development division, Reality Labs.


Reality Labs reported losses in 2022 that were expected to be about $13.7 billion, bringing the company's total losses since the beginning of 2017 to more than $21 billion.


In addition, Meta anticipates that its sustained investment in the development of VR/AR products would cause operating losses to rise further year.


Despite the large losses suffered by Meta, its founder Mark is still upbeat about the sector's future, at least when meeting with investors. However, these investors continue to have doubts about the viability of these investments.


According to Meta, the Metavers industry would continue to lose money for a while until turning a profit by the year 2030.


Days before Apple unveiled its Vision Pro mixed reality glasses with a starting price of $3,500, Meta recently revealed the $8 per month Meta Quest virtual reality service and the Quest 3 virtual reality hardware.

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