Metaverse development division of Meta (Facebook’s new name) reported a loss of $2.9 billion for the first 3 months of 2022.
Reality Labs, the developer of the metaverse and virtual reality for Meta, recorded a shortfall of nearly $2.9 billion in its Q1/2022 financial statements. This is up from Reality Labs’ $1.8 billion loss in Q1 2021.
Reality Labs in 2021 also reported a loss of $ 10.2 billion , spending focused on the areas of personnel compensation, research and development, and selling expenses.
On the other hand, Reality Labs’ revenue in the past three months was $695 million, up slightly from $534 million in the same period last year.
However, the company Meta had a successful quarter when earnings per share rose above expectations, despite lower-than-expected revenue. Thanks to that, Meta’s FB share price increased by 15% after the close of trading on April 17.
Meta CEO Mark Zuckerberg reassured investors that the company’s metaverse strategy is “long-term”, laying the groundwork for explosive growth in the 2030s.
Mr. Zuckerberg further revealed that Meta will launch a web version of the Horizon Worlds metaverse app this year, followed by a version that supports accompanying virtual reality devices. Horizon Worlds recently caused controversy when it planned to charge content creators up to 47.5% despite previously criticizing the Apple Store’s 30% fee.
According to foreign media channels, Meta’s internals are said to be bitterly divided when many employees disagree with the “extreme obsession” that CEO Mark Zuckerberg has for the metaverse.