The metaverse is characterized by virtual worlds in which Internet users can interact in the form of 3D avatars, consume products, exchange, etc. It is considered to be the next major development of the internet. Reality Labs, the specialized branch of Meta, is one of the most important players in this segment. She has been there since 2020 and hopes it will be as successful, if not more so, than Facebook.
Yet another setback for Meta in the Metaverse
On Thursday, official figures revealed that Reality Labs, Meta’s metaverse division, lost $3.67 billion at the end of the third quarter of the year. Year-over-year, it had reported $2.63 billion in loss. In the second quarter of 2022, the scenario was the same, with a loss of $2.8 billion. These figures reflect a difficult start for Meta, in its ambition linked to the metaverse. It is also the fourth quarterly decline in earnings for Meta.
This downward curve is not about to change direction, according to the quarterly report from Reality Labs. Besides, the company has a plan to change things.
“We effectively expect Reality Labs operating losses in 2023 to increase significantly year over year. Beyond 2023, we plan to pace Reality Labs’ investments such that we can achieve our goal of growing the company’s overall operating income over the long term.”explains the report.
On social networks, many believe that these results are the beginnings of exceptional growth in the sector. The majority of comments are that the market is not ready yet. However, they recognize that it is time to continue to develop it, and therefore to invest in order to interest users more.
Optimism
Despite the situation, Mark Zuckerberg, the founder and CEO of Meta, wants to be optimistic. “While we face near-term revenue challenges, the fundamentals are there for a return to stronger revenue growth (…) We approach 2023 with a focus on prioritization and efficiency that will help us navigate the current environment and emerge an even stronger business”he commented.
Despite the colossal investments, the branch in charge of the metaverse of Meta is experiencing financial years that are not very encouraging. But Mark Zuckerberg remains confident about the potential of this segment.
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