Mark Zuckerberg‘s ambitious metaverse initiative has reportedly cost Facebook and its parent company, Meta, a staggering $21 billion. The irony? The tangible outcomes are nothing more than a mere fraction of the investment. Just over 20 million units of the Quest VR headset, a key component of Meta’s metaverse, have been sold since 2019.
The virtual landscape of Horizon Worlds, Meta’s flagship VR experience, remains abandoned, with a rough estimate of only 200,000 users. The question arises – is Zuckerberg playing a dicey game with his continued investments, or does he genuinely stand by the anticipated success of his metaverse?
The backbone of Matrix’s metaverse ambition is Meta’s original advertising business, the digital juggernaut that has displayed double-digit revenue growth since the end of 2021. While skeptics argue that this ‘distraction’ is preventing investors from contemplating the billions sunk into the metaverse, Zuckerberg remains unfazed. He expressed confidence in the future growth of these investments, shrugging off concerns about lowering expenditures.
However, critical voices argue that revenues from metaverse-related operations – encompassing the sale of VR headsets, related services and applications – have taken a hit in the year 2021-22, and predictions forecast an even steeper decline in the coming annum.
The broader concern here hinges not just on the financial feasibility of the metaverse project but also on Zuckerberg’s role as CEO. A perceived failure to materialize the metaverse could arguably weaken his position within the company. Not to mention the awkward implications if Meta was to retreat its metaverse aspirations – it would certainly be unsettling for a company that changed its name to embody its championed virtual world.
On a positive note, accompanied by a small team and minimal advertising efforts, Meta’s Twitter-esque app, Threads, has surpassed the user base of Horizon Worlds in less than an hour. Observers suggest that Meta might be more prudent emphasizing Threads, instead of chasing the ephemeral mirage of the metaverse.
Despite the mounting criticism, one thing remains clear, Meta is adamant about its metaverse endeavor. The aftermath might either yield a groundbreaking technological revolution or an expensive cautionary tale about the cost of ambition. However, the future unfolds, it is certain to be an intriguing saga of technological aspiration and reality.
Source: Cryptonews
