Metaverse News

Facebook’s Metaverse Endeavors Taking A Hit

Recently the company now known as Meta unveiled its second quarter financial results for the 2022 fiscal year. If we’re being blunt, this most recent three-month period was not good for the company.

In fact, Meta’s virtual reality division suffered a $2.8 billion loss in terms of operating costs. This signals a $400 million increase in operating costs for Meta Reality Labs, the metaverse and VR division of the technology giant.

Net incomes for the company came out to $6.69 billion. While this sounds like a lot of money, it actually fell short of analyst expectations which estimated the company’s net income to be at least $7 billion during the second quarter of this year.

Despite these losses, the number of people using Meta services grew by 3% to reach 1.97 billion daily active users. Even though Meta has struggled to get off to a fast start, Mark Zuckerberg is still bullish on the metaverse space.

“The metaverse is a massive opportunity for a number of reasons,” Zuckerberg said during an analyst call. “It enables deeper social experience where you feel a realistic sense of presence with other people, no matter what you are doing.”

In the end, Zuckerberg said that he still believes the metaverse space could be an industry worth hundreds of billions of dollars, maybe even trillions. Regardless, it sounds like Zuckerberg and Meta are going to have to taper their expectations for the time being. After all, forecasts said that Meta Reality Labs will see revenues decrease next quarter.

(All information was provided by Google [1,2] and VentureBeat)

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