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Mark Zuckerberg has made a commitment to transform the metaverse into a more visually stunning and inspiring platform. This promise comes as Meta’s metaverse division reports a massive loss of $5 billion in Q4 2024, casting doubts on the viability of this project.
Zuckerberg revealed that the number of people using its VR headset, Quest, and metaverse world, Horizon, has increased. However, he acknowledged that the long-term investments made by Meta will eventually bear fruit in 2025. The Meta CEO’s comments come at a time when the company’s metaverse division is struggling to make a profit.
Reality Labs, Meta’s metaverse division, reported revenue of slightly above $1 billion, with most of it coming from hardware sales. Unfortunately, its operating costs increased by 6% to $6 billion, resulting in significant losses. Meta’s CFO, Susan Li, emphasized that the company is investing heavily in the metaverse and wearables sectors.
It’s worth noting that Meta has already invested over $60 billion since 2020, but so far, it seems like a costly endeavor. The financial records reveal that the losses from this project are substantial, with no signs of improvement yet.
Zuckerberg has promised to continue investing in AI technology and aims to reach more than one billion people with its personalized AI assistant. This development comes just four months after Meta launched a cheaper metaverse headset, leaving many wondering whether the company will reconsider its investments in the metaverse.
The announcement raises concerns about Meta’s financial stability, as it is expected to incur even more losses in 2025.
Source: fullycrypto.com
