Meta lost $3 billion from its investments in the metaverse in the first quarter of 2022. According to Mark Zuckerberg, the metaverse division will not be profitable for several years.
Meta, the American group behind Facebook, WhatsApp and Instagram, has just published its financial results for the first quarter of 2022. This is an opportunity for the company to take stock of the performance of Reality Labs, the division devoted to the development of the metaverse. The section is notably responsible for developing virtual reality headsets and future connected glasses for augmented reality.
The metaverse division posted a loss of $2.96 billion in the quarter. The large investments decreed by Mark Zuckergerg, CEO and founder of Meta, have contributed to widening the deficit. Within a year, Reality Labs lost $10.19 billion. This is the largest loss recorded by the group. This deficit was foreseen by the leaders of the group.
The metaverse, an investment for the future
Aware of the challenges to be met, Mark Zuckerberg ensures that the financial situation of the metaverse division is not likely to improve for several years. “It won’t be for some time that these products really hit the market and become a big contributor of revenue or profit for the company”, admits Mark Zuckerberg, anxious to reassure shareholders. For the billionaire, it will take wait until 2030 to be able to generate money with digital worlds.
To be able to profit from the metaverse in the future, Meta has already started to monetize Horizon Worlds, the world accessible through a virtual reality headset. The company will offer creators present on the platform to sell virtual goods in the form of NFTs. Meta goes charge a commission on each sale performed in its metaverse. To attract more Internet users, the group also announced the arrival of a web version of Horizon Worlds.
Convinced that the metaverse will revolutionize the world, Mark Zuckerberg presents his Reality Labs division as a investment for the future. “I recognize that it is expensive to build this. It is something that has never been built before. I try correct of to manage the company of one way or we we let’s position as the leader of social interaction in the metaverse”reassures the entrepreneur.
Despite the debacle of its metaverse division, Meta reported revenue approaching $28 billion, up 7% quarter over quarter. On the other hand, the financial results are down 21% over one year. The increase in the number of Facebook users however, reassured investors. Indeed, Facebook had 1.96 billion daily users at the end of March 2022, compared to 1.93 at the end of December 2021.
