Meta expects to lose more money on the metaverse in 2023

Reality Labs continues to cost Facebook's parent company money. Company expects to lose even more in 2023.

Meta's shift to the metaverse is costing even more now, a year later. In its most recent earnings report, Facebook's parent company disclosed that Reality Labs is losing more money than ever before. What is worse is that the company expects to lose even more in the upcoming year.

In the third quarter of 2022, Reality Labs, the division in charge of the company's virtual and augmented reality projects, reported a loss of $3.7 billion, up from a loss of $2.6 billion the previous year and $2.8 billion in the previous quarter.So far in 2022, Reality Labs has lost more than $9 billion. Company stated "We do anticipate that Reality Labs operating losses will significantly grow year-over-year in 2023."

Meta expects to lose more money on the metaverse in 2023

meta expects to lose more money

This is significant because Meta's significant investment in Reality Labs has already resulted in financial losses. Meta announced recently that it lost $10 billion on Reality labs in 2021. Mark Zuckerberg, the company's CEO, stated that investing in "the next computing platform" remained a top priority.

He stated, "This is a huge undertaking, and it will frequently take several versions of each product before they become mainstream."But I believe that our work here will be historic and lay the groundwork for a completely new way that we will interact with one another and incorporate technology into our lives. Additionally, Zuckerberg stated, "Meta will continue to reduce hiring as it deals with slowing revenue growth."Over the next year, some teams will grow significantly, while the majority of teams will remain the same or shrink,” he stated.We anticipate finishing 2023 with an organization that is either roughly the same size or even slightly smaller than it is now.