Meta is trying to make Metaverse a routine part of daily life by introducing new virtual reality hardware. However, the company has made significant investments in its hardware division Reality Labs since last year. However, according to the reports, there is no information about what the company uses the money for exactly. Here are the details
Meta spent more than $15 billion on Reality Labs
Parent company Meta has done significant work to increase its Metaverse business. One of them was the Reality Labs division. The company has spent more than $15 billion on the Reality Labs Metaverse initiative since the beginning of last year. However, the company did not share exactly what the money was spent on.
Experts are concerned that the company is spending so much money and not being transparent about it. “The problem is they spend the money, but the transparency with investors has been a disaster,” one tech analyst said. used his words.
Meta began disclosing financial information for Reality Labs last year. However, the company announced that it sank more than $10 billion into the venture with no end to the apparent losses. The company also reported more than $5 billion in losses for the first six months of 2022. Some analysts, on the other hand, think that the total losses for this year will be kept from last year.
Meta declined to comment on the matter. However, a company spokesperson said Meta did not disclose financial details for the Reality Labs segment. Tech analyst Dan Ives said that the amount of money Meta has spent on Metaverse so far is extremely worrying, especially considering this week’s updates.
Another analyst, Mark Zgutowicz, estimated that at least 60 percent of losses for Reality Labs were spent building an entirely new world. “Until we all wear glasses that don’t make us look like aliens, there’s no real Metaverse, at least from a scalable perspective.”
In addition, the analyst stated that transparency would be much better if they knew how and when to get a return on this expenditure. He also pointed out that Meta has legitimate reasons to try to build everything themselves.
So, what do you think about Reality Labs spending? Do not forget to share your views with us in the comments section!
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