Meta’s ambitious journey into the metaverse, spearheaded by its Reality Labs division, is no stranger to financial challenges. The tech giant, formerly known as Facebook, reported a massive $4.65 billion loss for its Reality Labs in the fourth quarter.
Despite these setbacks, Meta remains steadfast in its commitment to developing augmented and virtual reality technologies, a cornerstone of what CEO Mark Zuckerberg has heralded as the “next frontier.”
Meta’s Reality Labs Continues to Take Licks
In Q3 2023, Reality Labs slightly pivoted its approach to showcase the immediate practicality of virtual reality. The accompanying ad campaign, “The Impact Is Real,” marked a significant departure from previous futuristic portrayals.
It focuses on VR’s present-day uses, such as in professional training and medical rehabilitation. It’s a clear signal that Meta is looking to broaden the appeal of the metaverse beyond gaming and into more diverse sectors.
However, this record loss is part of a broader trend, with the division accruing over $42 billion in losses since the end of 2020. Despite these continued losses, the company remains undeterred, stating:
“We expect operating losses to increase meaningfully year-over-year due to ourongoing product development efforts in AR/VR and our investments to further scale our ecosystem.”
In contrast to Meta’s ongoing struggles, Apple is making a bold entry into the virtual reality space with its Vision Pro headset. Slated for release on February 2, 2024, the Vision Pro will retail for $3,500. This is significantly more expensive than Meta’s Quest 3 VR headset, which sells for $500.
