Meta CEO Mark Zuckerberg tries on Orion AR glasses on the Meta Join annual occasion on the firm’s headquarters in Menlo Park, California, U.S., September 25, 2024. REUTERS/Manuel Orbegozo
Manuel Orbegozo | Reuters
Meta is continuous to sink billions of {dollars} 1 / 4 into the metaverse.
In its first-quarter earnings report on Wednesday, Meta stated its Actuality Labs unit recorded an working lack of $4.2 billion within the interval whereas bringing in $412 million in gross sales. Analysts have been projecting an working lack of $4.6 billion on income of $492.7 million.
Meta’s Actuality Labs unit is accountable for the corporate’s Quest-branded digital actuality headsets and Ray-Ban Meta Sensible Glasses. It is the important thing enterprise unit that anchors CEO Mark Zuckerberg’s plans to construct a brand new computing platform involving digital worlds accessible through VR and augmented actuality units.
Actuality Labs has reported cumulative losses of greater than $60 billion since late 2020, together with a lack of $3.85 billion within the first quarter of final yr. In late 2021, Zuckerberg modified the identify of his firm from Fb to Meta.
Wall Avenue has questioned Meta’s large spending on the metaverse, which Zuckerberg has stated may take a few years to show into an actual enterprise. The corporate should now additionally deal with sweeping new tariffs from President Donald Trump and the probably enhance in prices that can comply with, probably resulting in higher-priced units.
Final week, Meta stated that an unspecified variety of Actuality Labs workers have been laid off. These employees have been a part of the Oculus Studios unit, which creates VR and AR video games and content material for Quest VR headsets.
“Some groups inside Oculus Studios are present process shifts in construction and roles which have impacted group dimension,” a Meta spokesperson stated in an announcement concerning the cuts. “These adjustments are supposed to assist Studios work extra effectively on future combined actuality experiences for our rising viewers, whereas nonetheless delivering nice content material for folks at present.”
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