In the first three months of 2022, Facebook’s parent company, Meta, has lost £ 2.3bn through its VR – focused Reality Labs division.
As VentureBeat (via Kotaku) reported, Meta has lost a significant amount of money on VR since 2020.
Meta’s Reality Labs division reported revenue of £ 553m for the first quarter of 2022, but this figure is well below the £ 2.3bn ($ 2.96bn) loss. This is a sharp increase on losses from 1.4 billion pounds ($ 1.83 billion) a year earlier.
The losses reflect Meta ‘s increased focus on CEO Mark Zuckerberg’s vision of the metaverse, which he unveiled alongside the Meta Facebook rebranding in October 2021.
The company has since announced that it is working on an “AI research supercomputer,” which will help “empower new user experiences, especially in the metaverse.”
The concept of metaverse is also heavily criticized. The NSPCC children’s charity has branded several metaverse apps “design-dangerous”, after a researcher discovered that sexual content, grooming and racism prevailed on VRChat.
Xbox boss Phil Spencer has also weighed in, suggesting that tech companies are not taking the right approach to metaverse.
“I think it’s easy for many tech companies to describe why the metaverse could be better for their company. But we’ve just learned if we put the player at the heart of it, my vocabulary reuse gaming, and try to build an ecosystem that works around your needs and the needs of the creators, the dynamics of the platform will improve, ”said Spencer.
On the metaverse, Spencer also wondered “why is it better for gamers? Why is it better for creators?”
In other gaming news, Terraria has released update 1.4.3, bringing a massive Don’t Starve transition and more content to console fans.