Meta Continues Investing 20% Of Metaverse Cost In 2023
Facebook parent company Meta Platforms Inc. continues to invest in the metaverse area despite questions about the business division focused on augmented and virtual reality and the so-called metaverse, according to a Bloomberg report.
The metaverse project Reality Labs will continue to receive roughly 20% of the company’s overall expenditures and expenses in 2023, according to CTO of Meta and Reality Labs Andrew Bosworth.
The “family of applications,” the firm’s main line of business, will get 80% of the investments made by the company (they include Facebook, Instagram, WhatsApp and Messenger).
2022 has proved more difficult than anticipated, according to Bosworth:
“Economic challenges across the world, combined with pressures on Meta’s core business, created a perfect storm of skepticism about the investments we’re making,” he said.
However, he continued, abandoning long-term plans in favor of short-term objectives alone might have “disastrous repercussions.”
According to him, a firm devoted to being at the forefront of one of the most competitive and inventive sectors on earth should invest 20% of its revenue in cutting-edge technology.
Since the company stock has lost about 65% of its value this year, some have questioned CEO Mark Zuckerberg‘s risky wager on the metaverse at a time when the business has reduced other expenses, including mass layoffs. The field may have potential, but its challenges are also very risky.
Reality Labs is a business of Meta Platforms that produces virtual reality (VR) and augmented reality (AR) hardware and software, including virtual reality headsets such as Quest, and online platforms such as Horizon Worlds. The company is the corporate successor to Oculus, a company that was founded in 2012 by Palmer Luckey, Brendan Iribe, Michael Antonov and Nate Mitchell to develop a VR headset for video gaming known as the Oculus Rift.
Through the first nine months of the year, Reality Labs recorded an operating loss of $9.4 billion; in contrast, the Meta family of applications generated almost $32 billion in profit.
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