As the userbase of Facebook has slowed, the VR division of Meta is experiencing losses of $2.8 billion in the second quarter of 2018. With its daily active users pegged at 1.97 billion by 2021, it will be crucial for Meta to focus on creating the next big tech trends, such as virtual reality. Developing new games and acquiring game studios is crucial to this vision.
Metaverse’s losses in VR division hit $2.8 billion in the second quarter
The company is still hopeful about the future of the metaverse, despite its recent losses. Mark Zuckerberg told CNBC on Monday that losses shouldn’t be surprising for a few years, until the technology has a chance to be mainstream and mature. Apple, which has been working on AR and VR models for some time, is another example of a company trying to capitalize on the new technology. For Zuckerberg, the future of the metaverse has not been written, and that research will be its priority for the time being.
Meta’s daily active users were 1.97 billion in 2021
In June, Facebook reported 1.97 billion daily active users and 2.93 billion monthly. Meta has 83,553 employees and the company plans to hire an additional 4,000 employees to meet the needs of its growing user base. The company’s CEO, Mark Zuckerberg, attributed the sequential decline to the war in Ukraine. As a result, Meta’s revenue growth for the quarter will be weakened by 6%, compared to 7% in the same period last year.
Facebook’s userbase has finally stopped growing
Facebook-owned Meta has been losing nearly $1 billion a month on its “metaverse” dream, despite the fact that it’s growing in popularity. The company’s monthly active users have remained relatively stable, at 2.91 billion. However, analysts expected that number to rise. Even after the gloomy February earnings report, Meta still managed to grow its DAU.
Meta’s focus is on creating future tech trends
Facebook’s founder is focused on using technology to connect people, and he recently showcased a futuristic headset that incorporates “neural interfaces.” He also teased the creation of a new high-end VR headset called Project Cambria. The device will have high-resolution video pass-through, enabling users to weave digital elements into their surroundings. These devices will also be able to see their users’ faces and skin tone, which will allow them to interact with virtual objects in an immersive manner.
Reality Labs spending is one of the company’s few constants
The losses at Meta are in line with the amount of money Zuckerberg invested in the augmented/virtual reality company last year. The CFO of Meta expects operating losses to continue to rise in 2022. The company’s losses from Reality Labs dragged down the company’s overall profitability during the fourth quarter. Had the augmented/virtual reality division not been so costly, Meta would have posted a profit of more than $56 billion.