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Metaverse News

Mark Zuckerberg: “Users Will Spend Hundreds Of Dollars In Metaverse”

June 24, 2022 - Around 3 mins mins to read

Meta CEO Mark Zuckerberg said that metaverse will bring significant revenue to the company in 2025 – 2030.

Mark Zuckerberg

“We hope to reach about a billion people in the metaverse. They will be the ones who spend hundreds of dollars, like buying digital content to express their interests, decorating their virtual spaces or gadgets that can increase productivity and efficiency when operating in AR, VR as well as on metaverse overall,” Zuckerberg replied to CNBC on June 22.

The head of Meta had demonstrated his ambition to enter the metaverse virtual universe since last year when he renamed his company, Facebook Meta. He also repeatedly emphasized that this would be where people could exchange and buy digital goods.

The first investment Meta poured into metaverse was in 2014, when it spent two billion dollars buying the virtual reality glass maker Oculus VR. After a period of development, the $299 Meta Quest 2 model has started generating revenue.

“Quest 2 was a huge success,” Zuckerberg said in the interview. “I’m pleased about how the device succeeded because it exceeded my expectations.”

Regarding the future metaverse, he thought it would take some time for the number of users to reach hundreds of millions or even billions of people. He expected the second half of this decade, Meta, to start being profitable.

Also, according to Zuckerberg, the metaverse will bring “a sense of presence as reality,” so devices that include hardware, software, and experiences need to be developed accordingly.

Mark Zuckerberg

“We are at a sensitive stage, but we are a company capable of delivering on our ambitions. Meta has large and long-term investments for metaverse, “he says. “The economy around the virtual universe will be big enough to make money.”

According to Meta’s first-quarter 2022 financial report, the company’s entire social platforms now have 3.64 billion monthly users, up 6% year-on-year. Zuckerberg thinks that this will be the foundation for moving towards the metaverse.

Who Facebook works like TikTok

Besides metaverse goals, Zuckerberg also mentioned the current situation of social networks. He said he had invested heavily in AI to drive advertising – a source that brings 97% of revenue to Meta.

“We’re changing how most of the content you see on Facebook and Instagram is displayed. AI proposes more and more content in it,” shares Zuckerberg. “As AI’s recommendations improve, you’ll have access to more content, not just the things you follow.”

Mark Zuckerberg

According to CNBC, this is how TikTok has recently been successful. Meta recently introduced the short video feature Reels to compete, and Zuckerberg revealed that the new feature takes up more than one-fifth of people’s time on Instagram.

Aside from the software, the head of Meta also said he was investing in AI hardware, racing against rivals such as Alphabet and Microsoft. He stressed that there would be the fastest AI supercomputer built by Meta, which is expected to be launched later this year. However, he acknowledged the company could reduce its investment in AI in an economic downturn.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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