Mark Zuckerberg’s Metaverse bid proved costly for the company amidst a persistent bear market as Reality Labs lost $13.7 billion in 2022.
According to Meta’s earnings release, the company’s metaverse arm recorded an operating loss of $4.28 billion in the fourth quarter, dragging down its total for the year.
Facebook was rebranded as Meta in the fall of 2021 as Zuckerberg doubled down on efforts to create a digital universe where people can work, shop, play, and learn. However, as Metaverse adoption has slowed down in 2022 due to the turbulent market conditions, the company’s investors called for a curb in spending in the segment.
Burning Billions in Metaverse
In the fourth quarter, Reality Labs generated $727 million, while its revenue for the entirety of the year stood at $2.16 billion, a decline from $2.27 billion in 2021. Despite the losses, the CEO has no plans to change its long-term course in the space. He said,
“Our priorities haven’t changed since last year. The two major technological waves driving our roadmap are AI today and over the longer term the metaverse.”
The company shipped Quest Pro at the end of last year, which is being touted as the first mainstream mixed reality device. Zuckerberg maintained that the focus will be to “deliver better social experiences than what’s possible today on phones.”
