menuIcon
$ 81,646.6
BTC
$ 81,646.6
8.85 %
$ 1,610.27
ETH
$ 1,610.27
13.58 %
$ 0.6113
ADA
$ 0.6113
11.39 %
$ 574.28
BNB
$ 574.28
5.88 %
$ 115.15
SOL
$ 115.15
11.70 %
Prabhjeet Bhatla
Apr 28, 2022
by Prabhjeet Bhatla

Zuckerberg Projects Poise Despite Dearth of Profit from Metaverse Project

Zuckerberg Metaverse
Reality Labs, Meta's division dedicated to creating a virtual world in which users can connect, work, and play, is still losing money. In today's after-hours earnings call, Meta CEO Mark Zuckerberg claimed the company is creating the basis for an "interesting 2030s."

In the first quarter of 2022, Reality Labs reported a $2.9 billion loss.

"I recognize it’s expensive to build this, it’s something that’s never been built before. And it’s a new paradigm for computing and social connection," Zuckerberg said.
"So, over the next several years our goal from a financial perspective is to generate sufficient operating income growth from Family of Apps to fund the growth of investment in Reality Labs, while still growing our overall profitability."

One of the company's near-term priorities, according to Zuckerberg, would be to improve hardware and Horizon Worlds, the company's latest social VR product, to enable creators to make money. When Meta announced earlier this month that it will take nearly half of the profits from any things sold on Horizon as transaction fees, it sparked outrage.

 “Our other focus for Horizon is building out the metaverse economy, and helping creators make a living working in the metaverse," said Zuckerberg. "We expect to be meaningfully better at monetization than others in the space, and we expect that should become a sustainable advantage for our platforms as they develop."

The startup is developing virtual reality headsets on the hardware side. Later this year, it plans to unveil Project Cambria, a higher-end virtual reality headset. According to Zuckerberg, the headset would be created exclusively for business use cases and will eventually "replace your laptop and work setup." Eye-tracking and facial tracking will be included in the hardware devices so that users may maintain good eye contact in the virtual world.

After a dismal fourth quarter and first quarter projections, Meta Platforms' market worth plummeted by more than $250 billion earlier this year. Due to increased competition from short-form video app TikTok, the company's daily active users plummeted by one million, causing its stock to plummet by about 26%.

Because of privacy modifications to Apple's iOS operating system, which have made it difficult to both targeted advertising to consumers and measure the outcome of those ads on the platform, the company's growth has halted in 2022.

On earnings, Meta shares jumped after hours, rising 17.5 percent in late trade.

Follow us on: News
Zuckerberg Metaverse Zuckerberg Metaverse
Zuckerberg Projects Poise Despite Dearth of Profit from Metaverse Project
Prabhjeet Bhatla
Prabhjeet Bhatla is a cryptocurrency writer covering startups and a researcher since 2020. She has authored many articles for Entrepreneur India and APAC (digital and print) on cryptocurrency and ever-evolving Blockchain, the technology behind Bitcoin, and other cryptocurrencies. She specializes in applied cryptography, privacy-enhanced information storage systems, anonymous cryptocurrencies, elliptic curve crypto-systems, and satellite television piracy.

Top Picks