An avatar of Mark Zuckerberg, president of Meta Platforms Inc., speaks throughout the virtual Meta Connect occasion in New York, United States, on Tuesday,Oct 11, 2022.
Michael Nagle|Bloomberg|Getty Images
Meta CEO Mark Zuckerberg keeps acquiring losses from his metaverse financial investments while downsizing his social networks business through expense cuts.
In its first-quarter incomes report on Wednesday, Meta stated its Reality Labs system, which is entrusted with developing the virtual truth and enhanced truth innovations for the futuristic metaverse, taped a $3.99 billion operating loss.
The system created $339 million in profits throughout the quarter, a tiny amount for a business that generates 10s of billions of dollars a quarter in marketing sales.
The loss did narrow, nevertheless, from $4.28 billion in the previous quarter on $727 million in profits.
For all of in 2015, Reality Labs taped an operating loss of $1372 billion on $2.16 billion in sales, highlighting how VR and AR innovations have yet to reach the mainstream.
Zuckerberg has actually promoted 2023 as the business’s “year of efficiency” and has actually executed significant cost-cutting efforts that consist of layoffs targeting an anticipated 21,000 workers.
But while the business loses weight, it’s still pumping billions of dollars into the metaverse after altering its name from Facebook to Meta in late 2021.
Data supplied to CNBC by research study company NPD Group revealed that sales of VR headsets in the U.S. decreased 2% year over year since early December 2022.
In March, Meta cut the cost of its Quest 2 VR headset along with the high-end QuestPro The Quest 2 now costs $70 less than in the past, costing $430, while the cost of the Quest Pro was decreased by $500 to $1,000
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