Meta’s Metaverse Push Is Making It Loss Fund
Meta, one of the first companies to announce a pivot from social media to the metaverse, is struggling to make its new focus profitable. In its most recent earnings call, which reports on the company’s economic performance during Q2, the company announced that its Metaverse division, the Reality Labs unit, had lost more than $2.8 billion dollars in the period mentioned, even when He manages to register. Over $400 million in sales. Reality Labs is in charge of the company’s Metaverse strategy, which includes the research needed to develop and manufacture virtual reality and augmented reality products. The monetization of Meta’s Metaverse initiative is still a work in progress, with its flagship VR app, Horizon Worlds, opening up its monetization options to users, with the company holding up to 50% of each sale.negative predictions
Meta’s outlook for the third quarter of 2022 is also negative. The company blamed this prediction on:The continuation of the weak advertising demand environment we experienced in the second quarter, which we believe is being driven by broader macroeconomic uncertainty.Meta CEO Mark Zuckerberg also indicated the possibility of layoffs over the course of the next year, saying that “this is a period that demands greater intensity and I expect we will do more with fewer resources.” The company reported a 32% increase in its workforce from last year, bringing its workforce to 83,553. In July, Zuckerberg commented on slowing down the company’s hiring strategy and raising performance standards for existing META employees. On the Metaverse side, the company also forecast that Reality Labs will continue to lose money over the next quarter. However, Zuckerberg refers to this Metaverse pivot as a long-term set of investments, as he believes the Metaverse will house the billions of users who will all be transacting in the Metaverse, each of these transactions. Monetized by the company with. What do you think about Meta’s latest earnings call and the losses it’s going through through the Metaverse business? Tell us in the comments section below.
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