11.4 C
London
Monday, May 27, 2024

Meta’s Reality Labs suffered a $13.7 billion loss from VR and AR in 2022

Date:

Related stories

WHO hosts the first forum on traditional medicine

The World Health Organization will convene its first summit...

Despite profit-taking, the price of oil still records a weekly rise

As the dollar rose and oil speculators took profits...

Kenya bans churches after allegations of killing worshipers who were starved

According to a government document made public on Friday,...

We counted only seven mentions of the “metaverse” in Meta’s quarterly earnings call this week, compared to 23 mentions of “AI,” but the company’s investment in its vision of a VR-connected social future is still enormous.

For the purpose of financial reporting, Meta started separating its Reality Labs VR and AR division into its own segment in 2021. It is now possible to see the staggering amounts of money that Meta is investing in those areas.

In contrast to the already staggering $10.2 billion it invested in the division in 2021, Meta reported operating losses for Reality Labs of $13.7 billion for 2022. Revenue for Reality Labs dropped from $2.27 billion in 2021 to $2.16 billion last year.

For context, keep in mind that in 2014, Meta paid $2 billion to acquire Oculus, the pioneering maker of VR hardware that laid the foundation for its efforts. The company’s investment in the sector has increased as a result of the acquisition of several significant software firms, including Beat Saber’s creator and now Within, the company behind the virtual workout app Supernatural.

Read Also  What Motivates Gen Xers and Baby Boomers to Adopt Cryptocurrency

Reality Labs had 17,000 employees before layoffs in the latter part of last year, according to reports. Meta hasn’t made available its headcount figures for the division, though. The majority of the money is spent on hiring personnel and developing hardware.

Susan Li, CFO of Meta, stated that the company anticipates even greater annual losses for Reality Labs in 2023. Li called its efforts in software for augmented reality, virtual reality, and the metaverse “a long-duration investment” and added, “We’re going to continue to invest meaningfully in this area given the significant long-term opportunities that we see.”

Later in 2023, Meta intends to introduce a new generation of consumer headsets, including a mixed reality update to its Quest hardware. It is widely anticipated that Apple will soon release a new AR/VR headset. Apple is one of the few consumer-focused businesses prepared to compete with Meta in the sector.

Read Also  'Green steel' will be provided by a Swedish company to Mercedes

The company’s CEO, Mark Zuckerberg, highlighted the fact that Reality Labs includes Horizon Worlds and other software related to the metaverse during this week’s earnings call. The most important aspect of what we’re doing, in my opinion, is the software and social platform, but building software requires much less money than building hardware, according to Zuckerberg.’

To win over skeptic investors, Meta may publicly downplay its metaverse efforts, but the company seems prepared to stick with VR and AR.

None of the signals I’ve seen so far indicate that we should change the Reality Labs strategy in the long run, according to Zuckerberg. We are always changing the specifics of how we carry out this, so I believe we will definitely take that into account as part of our ongoing efficiency work.

Read Also  Advisory firm Innisfree accuses Twitter of failing to pay $1.9 million in bills

Oh hi there 👋
It’s nice to meet you.

Sign up to receive awesome & exclusive content in your inbox, every week.

We don’t spam! Read our privacy policy for more info.

insiderblm
insiderblmhttp://insiderblm.com
InsiderBLM is a fast-growing business site with deep financial, media, tech, and other industry verticals.

Subscribe

- Never miss a story with notifications

- Gain full access to our premium content

We don’t spam! Read our privacy policy for more info.

Latest stories