Though losses of $13.7B were booked for this year, Meta promises a brighter future for Metaverse.
The company is all set to launch another next-generation consumer headset by the end of this year.
As fascinating as it may seem, building a giant like Metaverse comes with huge explicit costs. Annual financial disclosure reveals a harder hit on the company’s net profit. Financials disclosed by Meta, Facebook’s parent company, reveal massive and growing yearly losses for the metaverse building division. $13.7B is reported as losses in the accounts of the company.
Despite operating losses all-time high in 2022 for its reality labs business, Metaverse still got hold on its long-term strategy. Mark Zuckerberg, Founder, and CEO of Meta have no intentions to diverge from the goals. He made it clear that he will continue to invest in its Metaverse strategy.
Looking back at the financials from the year 2019, the company had reportedly booked losses worth $4.5B, which grew to $6.62B in the next year and $13.7B, an all-time high in 2022.
Meta’s Chief Financial Officer stated that this financial setback was expected and the company anticipates further ”meaningful losses” in the coming year also.
Beyond 2023, Meta expects to pace Reality Labs' investments so that it can grow overall company operating income in the long run.
After the financial disclosure on Feb 1, Mark in an interview firmly announced that his vision of Metaverse is unaltered. He firmly believes in the long-term opportunities that Metaverse has to offer. He added that later in 2023 the company would launch another next-generation consumer headset following the October launch of its Quest Pro Virtual Reality (VR) headset.
Interestingly, Meta as a company has extensively paid the cost for its Metaverse ambitions. Had the company not invested in its virtual and augmented reality arm, Reality Labs, it would have booked more than $56 billion in profit for all of last year!
However, this decision from the CEO of Meta is not surprising at all. The true potential of blockchain and metaverse technologies is undoubtedly immense and holds a greater scope for innovation. Known for his initial ventures in technology, Mark Zuckerberg could be the best brains out there in the industry to make Metaverse a living reality for humankind.
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Also, Read - Metaverse Is The Ongoing Digital Transformation.