head meta* Mark Zuckerberg is constantly accumulating losses associated with his active investment in the creation of the metaverse. Meanwhile, meta-processes in general* are optimized as far as possible — costs are reduced, among other things, by laying off thousands of employees.
In the first-quarter earnings report published at Meta on Wednesday* pointed out that Reality Labs continues to suffer losses. The department deals with the development of virtual and augmented reality technologies for the Metaverse project. In the first quarter of 2023, it reported an operating loss of $3.99 billion. In the same quarter, Reality Labs had just $339 million in revenue — an insignificant amount for a company that makes tens of billions of dollars each quarter from ad sales earned.
However, the momentum of Reality Labs’ financial results is very “positive”. For the prior quarter, Reality Labs reported a loss of $4.28 billion on revenue of $727 billion. For the full year, Reality Labs reported an operating loss of $13.72 billion on revenue of $2.16 billion -Dollar.
Zuckerberg once called 2023 the “Year of Efficiency” and announced large-scale cost-cutting measures, including laying off up to 21,000 employees. Although the company is literally shrinking, it’s still pumping billions of dollars into projects around the metaverse – at least since it changed its name from Facebook.* on meta* end of 2021.
According to analysts at NPD Group, sales of VR headsets in the United States fell 2% year over year in early December 2022. March meta* lowered the price of the Quest 2 and Quest Pro headsets. If the price of the first dropped $70-$430, the Quest Pro immediately dropped $500-$1000 in price.
This isn’t the only meta issue*. The company is famously falling behind in the AI race, having underestimated the value of the technology and now being forced to train its own intelligent systems with CPUs, rather than GPUs, optimally suited for such tasks.
* It is included in the list of public associations and religious organizations for which the court made a final decision to liquidate or ban activities on the grounds provided for in Federal Law No. 114-FZ of July 25. 2002 “On Countering Extremist Activities”.