According to financial reports, Meta’s Reality Labs division experienced a total loss of $13.7 billion in 2022. The company will continue to focus on the metaverse.
Meta CEO Mark Zuckerberg continues his quest to popularize the metaverse, but the company is losing billions in the process. Meta released its fourth quarter and 2022 yearly financial results on Feb. 1. The report offers a lot of insight into how much damage the metaverse pivot is costing the company.
The company lost $13.7 billion in 2022 due to its fixation on building a metaverse, an effort that was led by its ‘Reality Labs’ division. In Q4, the company recorded a $4.2 billion loss. Other areas showed marginal growth, like daily and monthly active users.
Despite the heavy losses, which were regularly commented on in 2022, Zuckerberg and Meta seem keen to continue with the metaverse plans. It has not generated much by comparison, bringing in $2.16 billion last year and $727 million in the last quarter.
The metaverse has not entirely managed to take off in the wider world. The technology is still new, and Meta is hoping that it can be the first mover in this market. Other companies are considering doing the same, though Meta is among the most gung-ho.
Meta has consistently been strategizing on the metaverse, offering updates over the course of the last year. In December 2022, the company stated that it would devote 20% of its costs to the metaverse in 2023. As such, most capital will be allocated towards its family of apps, but the metaverse intention still exists strongly.
More recently, Meta began testing members-only spaces in its Horizon Worlds metaverse. These are exclusive areas where the owners can choose who can enter.
Education is another area that Meta is testing. The company rolled out immersive learning in selective universities as a part of its metaverse strategy.
Meta’s strong metaverse push has led to some notable incidents. The company prepared for large-scale layoffs late last year. This is inevitable given what the tech market is going through, but Meta will still be keen on the effort, as the sector is projected to reach $5 trillion by 2030.
Zuckerberg has said that 2023 would be a year of efficiency. Meta may see more layoffs on the horizon, which would not bode well for its image.
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Meta has been investing heavily in its metaverse strategy, led by the Reality Labs division. Despite the losses of $13.7 billion in 2022, the company is still pushing forward with its plans. Meta is testing members-only spaces, immersive learning, and other features to make the metaverse more appealing. However, the company has also had to prepare for layoffs due to the industry’s current state. As the sector is projected to grow to $5 trillion by 2030, Meta is hoping to be the first mover in the market.