Meta is losing billions with the metaverse and will continue to do so – Nerd4.life

Half – the company of Facebook, Quest, Instagram and more – keep on lose billions of dollars through its own division VR and metaverse. In the last fiscal quarter, the company reported $ 3.7 billion in losses.

It is also not new. The same division reported losses of 9.4 billion dollars since the beginning of the year, up compared to the previous year’s losses in the same period (6.9 billion dollars).

What matters, probably, is that these losses do not cause an exaggerated slowdown in the company’s revenue. Meta reported revenue of 29 billion in the last fiscal quarter, a decline of 4% over the previous year.

Oculus is only a small fraction of Meta's VR and metaverse investments

Oculus is only a small fraction of Meta’s VR and metaverse investments

The most important number is that of receipts of Meta Reality Labs: $ 285 million. This means that revenue is completely driven by the “Familty of Apps” division (Facebook, Snapchat, Instagram …). Quite simply, VR and metaverse cost a lot and generate no revenue.

Meta is investing more and more in VR and the metaverse and will probably continue to do so, hoping to turn these expenses into long-term earnings, so it will be able to truly propose a metaverse for its users.

The investors they pointed out, in the most recent financial meeting, the problem of the expenses of the VR and metaverse division, but Meta reassured that the investments will pay off, even if not in the short term.

Meta’s value is currently suffering from the impact of the call on earnings. At the time of writing, the stock had fallen 19% in after-hours trading to $ 105.30, a price lower than any other the company has recorded this year.

Microsoft also unveiled its financial results, with declines in sales and earnings.

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About Eric Wilson

The variety offered by video games never ceases to amaze him. He loves OutRun's drifting as well as the contemplative walks of Dear Esther. Immersing himself in other worlds is an incomparable feeling for him: he understood it by playing for the first time in Shenmue.

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