Despite intensive investments into artificial intelligence, Meta (formerly Facebook) maintains a dedicated commitment to the metaverse, a realm that overlaps with AI and complements it in multiple ways, according to CEO Mark Zuckerberg. Yet, the journey into this uncharted territory proves costly as stumbling blocks continue to surface along the way.
In 2022, Meta’s commitment translated into economic strain as the tech giant reported a loss of $13.7 billion, up from $10.2 billion in 2021, for its Facebook Reality Labs (FRL) division – the team primarily responsible for the metaverse. Despite generating a revenue of $2.2 billion, the financial dismay proves the metaverse is a high-stakes gamble on a predicted futuristic trend.
But this long-range horizon that Meta is aiming for is not without its merits. It’s a multifaceted roadmap teeming with components such as virtual and augmented reality, neural interfaces, and social platforms. While acknowledging the high-risk nature of the bet, Zuckerberg admits, “I can’t guarantee you that I’m going to be right about this bet. I do think that this is the direction that the world is going in.”
On a brighter note, Meta’s fiscal second-quarter results showed a net income growth of approximately a billion dollars, from $6.7 billion the previous year to $7.79 billion, suggesting not all of Meta’s ventures are fiscal quicksand. Additionally, Meta’s family of apps saw active-user growth, with 5% for Facebook and 7% collectively for the other apps, including Instagram.
On the flip side, Meta’s attempt to replace Twitter with its own Threads app hasn’t hit its marks. After a launch week high, Threads saw a staggering 60% drop in active users, according to a report by Similarweb. This demonstrates the challenges Meta faces in grabbing a larger share of the social media market.
While the metaverse journey continues to guzzle billions without profitable returns, Meta’s overall growth and the digital footprints of its family of apps suggest a brighter future. It’s an intriguing paradox of striving to lead in unproven realms whilst maintaining their current digital dominance.
Source: Coindesk
