Meta Reports A $3.67 Billion Loss In Its Metaverse Division, Signaling More Problems For The Company
October 27, 2022- Meta’s problems continue as it records a $3.67 billion loss in the third quarter of 2022.
- Mark Zuckerberg remains optimistic about the prospects of the company, saying it has a “strong impact on the future”.
- Horizon World, Meta’s flagship metaverse game has come under fire for its underperformance with glitches and a depleting user base.
Recent developments coming out of several metaverse platforms in the past months have been abysmal following the wider market downturn, with Meta’s Reality Labs Division recording a series of losses.
The company’s metaverse division released its third quarter report showing a $3.67 billion loss adding to its woes. Losses for the company have continued to grow as its second-quarter losses stood at $2.28 billion, bringing its yearly loss to over $9 billion.
As losses mounted for the firm, its revenues also plunged to new lows. According to the report, the company recorded a third-quarter revenue of $285 million way below the estimated $406 million after it recorded $452 million in the second quarter.
Despite taking several hits, Meta’s CEO Mark Zuckerberg remains unwavering about the company’s recent problems adding that they are going in the right direction to have a strong impact on the future.
“While we face near-term challenges on revenue, the fundamentals are there for a return to stronger revenue growth. It would be a mistake not to focus on the metaverse as it will have a strong impact in the future.”
Meta’s share fell by 15% after trading on Wednesday and has plunged over 63% since the start of the year. Zuckerberg has reiterated his commitment to spend more into developing the metaverse saying that in a few years, more users will embrace virtual reality workplaces.
Reality Labs can change the narrative
Meta has been under fire for its Metaverse as its flagship game Horizon World suffered technical setbacks, which made its own staff avoid the platform. Meta has promised users a different future for the game with no bugs or quality issues. To deal with a reduced number of users, the company plans to release Horizon World on more platforms making it compatible with more devices.
Meta announced that it is working on more Avatars, making them detailed for use across Horizon World as well as other applications, including WhatsApp, Instagram, and Facebook. Furthermore, Meta has struck a partnership with Microsoft incorporating various versions of Windows and Xbox into its Quest VR platform which has also been upgraded.
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