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That metaverse business is not going as well as expected.
Image credit: Meta
Reality Labs, Meta's branch responsible for VR, AR, and all kinds of realities, lost $3.84 billion during Q1 of the current fiscal year, continuing the trend from the past couple of years.
The division's revenue saw $440 million, but Meta's investment in it and desire to advance the metaverse business couldn't compare. Still, it's a better number than the $339 million in 2023 and a $4 billion loss in the same period last year.
"For Reality Labs, we continue to expect operating losses to increase meaningfully year-over-year due to our ongoing product development efforts and our investments to further scale our ecosystem."
Mark Zuckerberg is optimistic about "building these new computing platforms long term. I mentioned in my remarks up front, that one of the bigger areas that we're investing in Reality Labs is glasses. We think that that's going to be a really important platform for the future."
He also added that Meta needs to "find better ways to articulate the value that’s generated here" so it doesn't seem like hardware costs increase but the value goes to a different segment.
"Our outlook for that, I think, has improved quite a bit because previously we thought that that would need to wait until we have these full holographic displays to be a large market. And now we're a lot more focused on the glasses that we're delivering in partnership with Ray-Ban, which I think are going really well. And so that, I think, has the ability to be a pretty meaningful and growing platform sooner than I would have expected," he said (via Game Developer.)
Meta plans to increase investments in new platforms and technologies, continuing its efforts to build the metaverse.
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