Facebook’s Metaverse Loses Billions
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Metaverse is losing Meta (Facebook) big money.
In quarter 2 alone, Meta’s Metaverse division lost $3.7 billion.
Since the start of the previous year, it has lost $21 billion.
Reality Labs, the division of Facebook (now known as Meta) spearheading the development of virtual and augmented reality technologies for the metaverse, has reported a staggering loss of $3.7 billion in the second quarter, bringing its total losses to over $21 billion since the start of the previous year.
CNBC reports that the Facebook division in charge of creating virtual and augmented reality technologies for the metaverse, Reality Labs, has announced a startling operating loss of $3.7 billion for the second quarter, increasing is losses to nearly $21 billion since the beginning of 2022.
Reality Labs, despite its ambitious vision for the future, has been grappling with significant financial challenges. The unit’s second-quarter sales stood at $276 million, marking a decline from the first quarter’s revenue of $339 million.
Despite the metaverse losses, Facebook’s overall financial health appears to be on the mend. The company’s shares saw an uptick of around five percent following an 11 percent surge in revenue, primarily driven by a resurgence in advertising and an optimistic sales forecast for the upcoming third quarter. Despite the losses incurred by Reality Labs, Facebook remains a dominant player in the advertising industry.
Last year they lost $13.7 billion.
Last year, Meta’s Reality Labs unit lost a total of $13.7 billion while bringing in $2.16 billion in revenue, which is driven in part by the company’s sales of Quest-branded VR headsets. Reality Labs lost $3.99 billion during the first quarter. That puts its total losses at about $21.3 billion since the beginning of last year.
Meta said in its earnings report that it expects operating losses in its Reality Labs unit “to increase meaningfully year-over-year due to our ongoing product development efforts in augmented reality/virtual reality and investments to further scale our ecosystem.”
In June, Meta announced a VR subscription service dubbed Meta Quest+, which costs $7.99 a month and is compatible with the company’s Quest 2, Quest Pro and upcoming Quest 3 headsets. The subscription service lets people access two new VR games each month, and they will be able to play those games as long as they have active subscriptions.
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