In September of 2020, Facebook (now known as Meta) released Facebook Reality Labs.
During the Q3 of 2022, Meta’s Reality Labs metaverse business lost nearly $3.6B.
While the whole IT sector has been struggling in 2022, Meta has had it particularly difficult. Since the firm changed its name in October 2021, when its stock was trading at $323.57 a share, the price of the stock has plummeted by 60%. Based on data from MarketWatch, Meta is now selling for $114.48.
Reality Labs‘ chief technology officer, Andrew Bosworth, said that Meta started 2022 with a new name and a new vision for the future, and as Reality Labs, it is their responsibility to bring that vision to reality. Even while everyone knew it wouldn’t be simple or quick, this year proved to be more challenging than the team had anticipated as per the CTO.
Bosworth stated:
“Economic challenges across the world, combined with pressures on Meta’s core business, created a perfect storm of skepticism about the investments we’re making.”
Only 20% of Meta’s Investment Funds
In September of 2020, Facebook (now known as Meta) released Facebook Reality Labs. The firm changed its name last year and stated that Reality Labs, the developers of the Oculus Rift virtual reality device, will be working on the development of the company’s metaverse project.
How these technologies are accepted by the community of programmers, artists, and manufacturers that has sprung up around these gadgets is what will determine their true worth, Bosworth said.
During the third quarter of 2022, Meta’s Reality Labs metaverse business lost nearly $3.6 billion, up from $2.63 billion during the same period in 2021. Bosworth claims that just 20% of Meta’s investment funds went into Reality Labs, with the remaining 80% supporting the company’s flagship products.