Mark Zuckerberg’s company will continue to fund Reality Labs as part of its global Metaverse strategy, even though the division posted a $13.7 billion loss in 2022.
According to Meta Platforms’ financial report, the Reality Labs commercial and research division lost $13.7 billion in 2022, making the unit that handles Metaverse development the most unprofitable for the company, showing the largest annual loss.
However, Mark Zuckerberg, Founder and CEO of Meta, has no plans to abandon the company’s long-term strategies in the Metaverse development. He says the company will keep investing in the technology, which he considers a huge opportunity. According to Zuckerberg, the Metaverse is going to be costly for them in the next few years, and “Reality Labs operating losses in 2023 will grow significantly year-over-year.”
In 2023, the company will introduce a new VR headset for the next generation. Recall that Meta launched the Quest Pro headset last October, adding a set of Microsoft products. However, the “virtual office of the future” wasn’t successful. In fact, Q4 2022 was the worst for Reality Labs — the division’s losses totaled almost $4.3 billion.
Meta’s plans to take over third-party companies offering products or services related to the Metaverse will likely contribute to the company’s losses in 2023. For example, a Federal Trade Commission (FTC) injunction against Zuckerberg’s purchase of VR firm Within was denied. If the FTC fails to appeal the decision within a week, Within and its fitness app Supernatural will become part of Meta. The company also plans to take over several more such “competitors.”
The FTC’s lawsuit against Meta and its CEO Mark Zuckerberg had one goal — to block the company from taking over the entire Metaverse and expanding its “virtual reality empire.” The FTC complained about Meta’s “anti-competitive behavior” before rebranding in 2021. The regulator filed similar lawsuits both after the 2014 acquisition of WhatsApp and after the 2012 acquisition of Instagram. The FTC’s main accusation all these years has been the same — suppressing innovation by buying competitors.
Despite Zuckerberg’s best efforts and his unwavering belief in the promise of Metaverses, the technologies aren’t ready to become a real trend yet. You can read about what Metaverse technologies are and what areas of their application already exist in the Academy materials of CP Media.
