Meta Discloses Its Metaverse Division $3.6 Billion Third-quarter Loss
According to Meta, its Reality Labs metaverse division lost over $3.6 billion in the third quarter of 2022, compared to $2.63 billion in the same period last year.
Anticipating The Losses for The Next Year
For Meta, 2022 continues to be a challenging year, as the project lost $2.8 billion in Q2 2022. Over $9.43 billion has been lost by Meta’s Reality Labs this year, a report shows.
In after-hours trading Wednesday, Meta shares fell over 15%, bringing their year-to-date decline to more than 60%.
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“We do anticipate that Reality Labs operating losses in 2023 will grow significantly year-over-year,” the report stated.
“Beyond 2023, we expect to pace Reality Labs investments such that we can achieve our goal of growing overall company operating income in the long run,” according to the report.
Metaverse refers to the next version of the internet, a persistent, shared virtual world in which 3D virtual avatars interact with each other.
Established in August 2020, Reality Labs, a Meta subsidiary that designs hardware and software for virtual and augmented reality, includes Meta’s Oculus VR set and Horizon World metaverse.
Earlier this month, Horizon Worlds was scorned on social media after it was revealed the legs on the avatars living in the metaverse were faked using motion capture technology.
Still Optimistic About The Future of The Company
Meta CEO Mark Zuckerberg was optimistic about the company’s and its metaverse’s future, despite today’s poor financial report.
“While we face near-term challenges on revenue, the fundamentals are there for a return to stronger revenue growth,” the CEO said.
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“We’re approaching 2023 with a focus on prioritization and efficiency that will help us navigate the current environment and emerge an even stronger company,” he added.
Furthermore, he mentioned that he anticipates that virtual reality and mixed reality will become more prevalent in the workplace as time goes on.
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