Financial statistics state that in 2022, Meta’s Reality Labs subsidiary lost $13.7 billion. The business will keep putting the metaverse front and center.
Mark Zuckerberg, CEO of Meta, persists in making the metaverse mainstream, despite incurring billions in losses for the company. Meta recently unveiled its Q4 and 2022 financial results, showing the economic impact of their shift toward the metaverse.
Meta lost $13.7 billion in 2022 from its focus on metaverse development, driven by Reality Labs. In Q4, it had a $4.2 billion loss, with slight growth in daily and monthly active users.
Facebook’s Q4 revenues fell 4.5% over the prior year, the 3rd consecutive YoY decline. The stock is up 18% in after hours trading. $META
Despite consistent heavy losses, Zuckerberg and Meta persist in their metaverse plans, which generated only $2.16 billion in 2022 and $727 million in Q4. The metaverse has yet to gain widespread adoption, and Meta hopes to be a pioneer in this nascent market while others are also exploring. However, Meta is the most enthusiastic among them.
Meta continually focuses on the metaverse, providing updates in the past year. In December 2022, they announced that 20% of their 2023 expenses would go towards the metaverse, with most funds going towards their app suite. The metaverse goal remains strong.
Zuckerberg’s Metaverse Pursuit Continues
Recently, Meta started testing exclusive member-only spaces in its Horizon Worlds metaverse, allowing owners to choose who can access them. As part of its metaverse strategy, Meta is experimenting in the field of education by introducing immersive learning at selected universities.
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Meta’s strong metaverse focus led to significant layoffs last year and may see more in 2023 as the company aims for efficiency. The metaverse sector is estimated to reach $5 trillion by 2030, despite its impact on Meta’s image.