How Long Can Zuckerberg Afford to Bankroll the AR/VR Market?

The question is: how long can Zuckerberg afford to bankroll the industry? The VR industry, while growing quickly, has a ceiling of 150 million console buyers and no footing on mobile. It will take 7-10 years to turn the market into a revenue generator, and the Facebook CEO is betting that his company can get there. The company is backed by more than $4 billion in investment.

The AR/VR market isn’t as mature as the tech industry, so the companies building it are losing money while they’re developing the technology. Unlike the early days of gaming, the AR/VR industry is about seven to 10 years away from becoming a revenue generator. However, Zuckerberg’s company is making a huge bet that the concept will work, and it has spent billions of dollars backing the project.

How Long Can Zuckerberg Afford to Bankroll the AR/VR Market?

It’s a good thing that Facebook hasn’t bankrolled the AR/VR industry yet. The company is facing regulatory scrutiny and political scrutiny, so it’s wise to wait at least 7-10 years before it turns into a moneymaker. Moreover, Facebook’s latest acquisition could cost the company a lot of money, but it’s worth it in the long run.

The AR/VR world is a difficult one to do business in. Apple repeatedly delayed its personal headset. Microsoft has struggled with its HoloLens division and scrapped third-generation headsets. Even the aforementioned Magic Leap hardware has been halted due to technical difficulties. Despite the hype, the new generation device is far more advanced than its predecessors.

The AR/VR market is a very complicated field. The companies have to be able to keep their users happy. There are so many pieces that need to work in order for the experience to be truly valuable. For instance, Quest, a VR device developed by Google and Facebook’s own engineers could have never existed without FB’s money. A typical company would have halted its VR division by now, but not FB.

The AR/VR space is a difficult place to do business. Apple has repeatedly delayed its personal headset. Microsoft has had troubles with its HoloLens division and scrapped third-generation headsets. Meanwhile, Magic Leap has been undergoing a major rebranding to be more competitive. Its hardware is expected to be better than its competitors’. Although the future is still uncertain, it is clear that it is worth investing in the AR/VR industry.

Also Read: Netflix’s Market Share Squeezed As Competition Increases

The AR/VR world is not an easy place to do business in. Microsoft has repeatedly delayed its personal headset, while Apple has struggled with its HoloLens division. It has also cancelled plans for a third-generation headset. In addition to these challenges, the AR/VR space has been plagued with controversy. Despite the hype, Facebook is betting that the AR/VR market is a good place to invest.

By Luciana Rojas

Luciana Rojas is a stock market expert. She has been entrepreneur since she was just 16 years old. She also shares her experience as well as Stock Market News worthy Pieces on Daily Reuters. Lately she has been working on NFTs so she really helps the Daily Reuters audience to learn about NFTs.

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