Meta: $2.8 billion loss for its metaverse department

Zuckerberg thinks long term – Facebook’s rebranding under the Meta banner in late 2021 hasn’t paid off so far. The company recorded heavy losses in the second quarter of 2022 on the side of its branch dedicated to the metaverse, Reality Labs. The first half of 2022 therefore turned out to be particularly financially painful. Despite a seventh consecutive quarter of loss, the big boss of Meta wants to be reassuring.

Clearly, the start of crypto services is far from being a long calm river for the giant of social networks. Very ambitious a few years ago, Zuckerberg and Meta had to cut back in that area. The political and regulatory issues pushing too hard, the company was forced to abandon its Diem (stablecoin) plans and NOTovi (crypto wallet).

Several departures should also be noted, including that of two strategic partners who worked on the Novi solution. They have since launched Aptos, a new layer 1 with an already active testnet.

The news is not necessarily happy for Reality Labs and more generally the parent company Meta regarding crypto and metaverse issues. Zuckerberg tempers any alarmism:

“The Metaverse represents a massive opportunity for a variety of reasons. I am even more convinced now that the development of these platforms will unlock hundreds of billions of dollars, if not trillions in the long term. »

Mark Zuckerberg, source

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The macroeconomic context does not help

It’s not the action Meta who will say otherwise. She records a fall of almost 60% since its peak last August. Zuckerberg readily concedes that back-to-back bad numbers add pressure, but it’s ” obviously a very expensive undertaking over the next few years. »

Reality Labs develops augmented reality and virtual reality applications for Meta users. The entity manufactures the tools to stimulate activity in the metaverse and on social platforms. It therefore relies heavily on sales of Oculus and VR headsets. IDC estimated equipment sales of 5 to 6.8 million in 2021, which still seems like little to populate the metaverse.

Zuckerberg reiterates his ambition in the metaverse

Despite the difficulties of this department, Meta remains in very good financial health. Not enough to start research and development budgets. Zuckerberg is convinced that this digital universe will have an increasingly important impact in our every aspect of our way of life “.

The boss of Meta poses as a visionary leader. It is showing itself to be really resilient despite the accumulation of snubs (the word is out) linked to the blockchain and cryptocurrencies. During the quarterly earnings announcement session, Zuckerberg showed his determination to invest in the future of the internet. Although the future of the metaverse is uncertain, it’s a safe bet that it is home to a huge market. Especially if Meta ends up setting up its (very) greedy royalties announced vis-à-vis content creators.

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