The Metaverse project by Mark Zuckerberg is making way more losses than what was expected.
- Meta’s Metaverse Division made losses worth $3.7 billion in Q3 2022.
- This was primarily made by the Reality lab’s division of Metaverse.
- Mark Zuckerberg is doubling down on Metaverse investments (and losses) every year.
Q3 2022 reports published by Metaverse have stated that it has made $3.7 billion in losses. According to reports, the Reality Lab’s division was held responsible for this. This department is in charge of overseeing the creation of virtual and augmented reality operations.
Annual financial reports also indicate that the losses incurred by Metaverse are increasing every year. Compared to last year’s financial esports, the company has suffered double the losses this Q3.
If you compare the Q2 losses faced by Meta, the Q3 losses are significantly higher. In Q2. Reality Labs lost only $2.8 million.
Billions of dollars were invested in Reality Lab, considering the fact that it’s an innovative and lucrative project. However, this division had a disappointing performance this year, making revenue worth only $286 million.
However, Mark Zuckerberg still wishes to continue the project despite losses. This is what he has to say:
“A lot of people might disagree with this investment. But from what I can tell, I think that this is going to be a very important thing, and I think it would be a mistake for us to not focus on any of these areas, which I think are going to be fundamentally important to the future.”
Zuckerberg also expects more losses in the future, especially in 2023, since development is taking longer than usual. Following the publication of these financial reports, the shares of Meta fell by 15%. This is what he said:
“We do anticipate that Reality Labs operating losses in 2023 will grow significantly year-over-year. Beyond 2023, we expect to pace Reality Labs investments such that we can achieve our goal of growing overall company operating income in the long run.”