Facebook’s VR division loses $13.72 billion in 2022
Facebook’s parent company, Meta, is having a pretty good day today after beating revenue and user activity forecasts for the final fiscal quarter of 2022. However, the company’s VR division they don’t help the company make money. In fact, it caused the company to lose billions of dong.
Although it is true that Meta’s stock is rising In after-hours trading today after sharing rather positive fourth-quarter financial results, its VR division, Reality Labs, has no positive news to share, as it continues to blow money at a rapid pace. dizziness. The company confirmed today that it lost more than $4 billion on VR and metaverse development in the last quarter of 2022. In total, they lost more than 13 billion dollars in 2022 tried (and failed) to build a metaverse that people would flock to.
By comparison, Meta brought in $32.1 billion in revenue across all divisions and applications.
According to the report of decode.co, Meta’s Reality Labs brought in only $727 million in revenue in the final months of 2022. That’s not great when compared to the billions of dollars spent on the division in the same year, but it’s also worse than you might think. That’s down 17% from the division’s revenue for the same period in 2021. Oops.
Also keep in mind that Facebook’s flagship metaverse software, horizon worldwas essentially a colossal failure, with reports that most of the worlds inside it are empty and barely played. Not only that, the company’s employees barely use it, with a leaked internal memo suggesting employees at Meta don’t like it. horizon world because it has many bugs and other quality problems.
Really the only big success story from Reality Labs is the Oculus Quest 2 headset, which was seen by many as an affordable alternative to pricey PC and console VR headsets and was also completely standalone. But in July Meta raised the price of that affordable headset by $100with the 128GB model currently priced at $400 and the 256GB version currently priced at $500.
In November 2022, Meta laid off 11,000 employeesblame covid, “macro-recession, increased competition and loss of advertising signal.” Zuckerberg blames himself for firing employees, but conveniently doesn’t mention in his layoff notice how much money the company is continuing to spend on VR and metaverse development. Over the years the company has spent tens of billions of dollars trying to create a metaverse that supports VR.
And now, in February 2023, after mass layoffs and constant losses, it only has an unattractive and empty PlayStation Home clone to show for all its troubles.