Mark Zuckerberg’s Meta has suffered heavy losses from its Metaverse operations, totaling nearly $50 billion over the past five years.
This number exceeds the market capitalization of well-known companies such as Ford, Hershey, and Kraft Heinz.
An Insider analysis of regulatory filings reveals that Meta Inc.’s Reality Labs division has experienced cumulative losses of $47 billion since the beginning of 2019.
This operating loss has steadily increased from just under $5 billion in 2019 to more than $10 billion in 2021, nearly $14 billion in 2022, and more than $11 billion in the first nine months of 2023. I am.
Meta, formerly known as Facebook, has expanded into the Metaverse by investing heavily in developing virtual worlds that allow people to interact with each other and interact with digital objects in a more immersive way.
When Facebook rebranded to Meta in 2021, the excitement increased significantly. The name change was announced at the Facebook Connect Augmented and Virtual Reality Conference.
The Metaverse is a virtual world where people can interact with each other and digital objects in a more immersive way.
Horizon Worlds is one of Meta’s metaverse projects. It’s a virtual theme park where users can hang out, chat with friends and strangers, play games, attend concerts, game rooms, open mics, dance halls, bowling alleys, escape rooms, and more.
However, many of these locations are abandoned and most venues only have one avatar.
Another project is a meta adventure. Meta Adventure is an online multiplayer Play-To-Earn platform featuring exciting games.
This platform is part of the Meta’s Metaverse and is home to NFTs that players can collect and use across different games.
Meta also created a new top-level product group focused on generative AI to accelerate AI research.
This was done because we believe that AI research is essential to the development of the Metaverse and are investing heavily in this area.
Zuckerberg and his team expect this trend to continue. Meta’s third quarter earnings report stated, “We expect our RL operating loss to increase significantly in 2024.”
These losses are primarily attributable to significant investments in long-term research and development of Metaverse products, some of which may not be fully realized for a decade.
The Metaverse market is a rapidly growing industry that is expected to revolutionize the way people interact and interact with digital objects.
It was worth approximately $83.9 billion in 2023 and is projected to grow at a compound annual growth rate (CAGR) of 45.2% during the forecast period (2022-2030).
Although Meta has experienced financial losses, it has continued to make progress toward a virtual world. They recently announced Meta Quest 3 on October 10, 2023. The headset comes in two versions: 128 GB and 256 GB.
Meta Quest 3 features a 4K+ Infinite Display, which increases resolution by approximately 30% compared to Meta Quest 2.
It also features mixed reality capabilities, allowing users to seamlessly transition between a fully immersive experience and a blended environment with virtual elements overlaid on the physical environment.