Metaverse lost nearly 30 billion in the second quarter
Meta's MetaVerse division reported a loss of $3.7 billion (approximately HKD 28.8 billion) in the second quarter, bringing the total losses for the division to $17.7 billion (approximately HKD 138 billion) over the past five quarters. However, the company stated that the losses were "meaningfully increasing" in a positive way.
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Meta's Reality Labs division, which includes augmented and virtual reality and the MetaVerse software platform, posted a net loss of approximately $3.7 billion in the earnings report released on Wednesday. However, these losses have not deterred Meta from investing in its MetaVerse vision.
During the earnings conference call, Meta CEO Mark Zuckerberg stated, "This is a very long-term plan, and I understand that a lot of investors are uncomfortable with it because it goes beyond the models of how most long-term investors think about these things."
Zuckerberg expects that everyone will eventually have smart glasses and that TV and computer usage will evolve into more immersive virtual reality experiences.
He further explained that Meta's MetaVerse vision is to create a virtual space where people can interact, learn, and shop. This will be a significant technological shift and will require substantial research and development and investment.
Meta stated that it anticipates "meaningfully increasing" operating losses for Reality Labs, due to ongoing efforts to develop and invest in augmented/virtual reality products and further expand the ecosystem. Meta plans to continue investing in cutting-edge technologies such as artificial intelligence and the MetaVerse in 2024.
In a press release, the company stated, "We believe that the MetaVerse is a long-term opportunity, and we will continue to invest heavily in this area to realize our vision."
Despite the ongoing losses in Meta's MetaVerse division, the company's other business units performed well, particularly the Meta "family of apps," which includes Facebook, Instagram, Messenger, WhatsApp, and other services. This strong performance provides Meta with sufficient funding to continue advancing its MetaVerse vision.
