Metaverse cost Meta $13 billion in 15 months (Facebook)

Meta’s division dedicated to virtual reality and metaverses, Reality Labs, has reported a loss of $10.2 billion for the full year of 2021, and $3 billion in the first quarter of 2022. And that’s just the beginning…

For Facebook, the future certainly passes through the metaverse. And in this area, the US company, which rebranded itself Meta in October 2021 to celebrate its strategic transformation, is ready to spend lavishly. So much so that the bill is starting to raise eyebrows for Menlo Park Group… And so, its division dedicated to virtual reality and the metaverse, Reality Labs, waived a loss of $10.2 billion over the whole of 2021, and then $3 billion in the first quarter of 2022, more than $13 billion lost in just 15 months. But Mark Zuckerberg does not budge: the massive investments aimed at building the grand formula of his company will pay off.

In this sense, the California head of the company plans to mobilize several tens of billions of dollars, with private funding from income from its suite of applications (Facebook, Instagram Messenger and WhatsApp), which has 3.64 billion monthly users worldwide. Meta has also announced that it is recruiting 10,000 people in Europe to build its metaverse. In the latter, Mark Zuckerberg has set himself a goal of welcoming 1 billion people by 2030, the horizon at which this parallel world, considered the “future of the Internet”, can become profitable, according to the CEO of the social networking giant.

Currently, the group’s only revenue in virtual and augmented reality comes from sales of its Meta Quest headset (ex-Oculus Quest), which brought in $2.3 billion in 2021. The US group, which bought Oculus in 2014, is today the leader Globally in virtual reality headsets, nearly 11 million headsets were shipped in 2021, according to IDC. The flagship Meta headset captured 80% of the market alone last year. The US company intends to capitalize on its ambitions in the metaverse to further boost sales of this product. With this in mind, the group will open May 9 in California a Meta Store, its first physical store aimed at selling Meta Quest 2 helmets, connected Ray-Ban goggles or connected gate monitors.

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Increase sales of virtual reality headsets indispensable condition for meta in order to attract its users to metaverses. In December 2021, the American giant revealed the first draft of its parallel virtual world, called Horizon Worlds. Pour l’heure réservée aux utilisateurs américains et canadiens, cette plateforme sociale de réalité virtuelle, accessible via les casques Meta Quest, doit poser les bases du futur métavers de Meta, où il sera possible de et de seamuser, He buys. To date, Horizon Worlds has more than 300,000 users and more than 10,000 worlds created on the platform. Enough to allow the Meta to start testing the sale of virtual objects in the metaverse…

Beyond e-commerce, which could be a particularly lucrative new source of income, the American giant above all hopes to commercially exploit the metaverse in the area it masters best, which is targeted advertising. Thus, the Californian company, whose business model is based almost exclusively on advertising revenue ($115 billion in 2021), is specifically planning to calculate the effectiveness – and therefore cost – of display advertising according to the user’s viewing angle and facial expressions. In other words, the more your ad catches your eye and sparks your interest in Metaverse, the more Meta will price it with advertisers. In this context, the group plans to exploit the cameras installed inside its Meta Quest helmets, which means that the Meta is ready to transform certain technologies for advertising purposes. Which will not surprise many people given the company’s habits and commitments in this area…

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