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As of the end of 2024, Meta’s Reality Labs division has faced staggering losses of $68.9 billion since the company rebranded from Facebook to embrace Mark Zuckerberg’s vision of the “Metaverse.” While some of the financial setbacks can be attributed to AI projects within Reality Labs, the majority stem from Zuckerberg’s ambitious pursuit of the metaverse. Surprisingly, revenues at the division have decreased from $2.3 billion in 2021 to $2.1 billion in 2024 according to Meta’s recent financial results. When you consider the hefty $2 billion acquisition of Oculus in 2014, the total amount spent could have purchased major companies like Coinbase, General Dynamics, FedEx, or Roblox – with change to spare for Reddit.
Meta’s new ad for Horizon Worlds has sparked mixed reactions, especially on Instagram where comments have been less than favorable. Despite Zuckerberg’s optimistic outlook on the metaverse, Horizons appears to cater more to a niche group of affluent children with Oculus goggles and possibly “terminally-online” adults. The marketing strategy seems to target a demographic of individuals who may lack real-world social connections but thrive in the virtual realm.
Zuckerberg, however, remains steadfast in his belief that the metaverse is the future of Meta. During the fourth-quarter earnings call with analysts, he emphasized that 2025 would be a pivotal year for the metaverse, hinting at upcoming enhancements to make the virtual world even more captivating and immersive. While some skeptics question the actual user base of Horizon, Zuckerberg’s enthusiasm for the metaverse’s potential remains unwavering.
As we navigate the ever-changing landscape of technology and virtual reality, one thing is clear – the metaverse is here to stay, and its impact on society and business is only just beginning to unfold. Stay tuned for more updates on Meta’s journey into the metaverse and how it will shape the future of technology.
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