- According to Canalys, the loss suffered by Reality Labs is the reason for this.
- Meta believes this loss is impermanent and expects to earn high profits in the future.
Today, the whole world is amazed by the concept of metaverse. Everyone is predicting what the metaverse will look like and what interesting things they will be able to do in it. People wonder when they will be able to explore the metaverse and how it will shape the future. Many companies are actively exploring the field of metaverse and its potential applications.
The Perspective of Tech Companies Towards the Metaverse
All tech companies are fighting hard to be the first ones to exploit the market of the metaverse. For example, Meta, the parent company of Facebook, Whatsapp and Instagram has already invested $13.7 billion in 2022 with the aim of building a metaverse. Not only this, all other popular tech companies, from Apple to Microsoft, have already started working towards becoming big players in the upcoming metaverse market.
Other big names that have invested in the Metaverse are Microsoft, Unity Software, Epic Games, and Alphabet (The parent company of Google). Every big tech giant wants to become the largest player in the Metaverse.
Companies like Decentraland and Sandbox have even launched their own Metaverse. For example, in Decentraland , you can not only buy land but also explore a lot of things that you cannot do even in the real world. You can attend concerts, visit live shows and even play your favourite games like gambling and casinos. It has an inbuilt game called Ice Casino.
The Report
Although many companies are working hard towards creating the Metaverse, a recent report by market researcher Canalys has predicted that most of the metaverse projects will have shuttered by 2025.
One of the major reasons behind this prediction is estimated to be the loss that Reality Labs suffered. According to recent research, Reality Labs has lost $16 Billion since the start of the year.
About Reality Labs
For starters, Reality Labs is a business and research Unit of Meta Platform. They are into developing hardware and software which will be used for accessing the Metaverse that Meta will be building. Recently, reality labs launched meta quest 3, which is a VR device. Meta is planning to use this device in future for accessing its Metaverse. Meta has not launched this device till now, but it is coming this fall. Meta has already announced the price of this device, which is fixed at $499.99. They have also launched Meta Quest 2, Which is priced at $299 USD. In addition to this, they have also launched other products such as Meta Quest Pro full light blocker and Link Cable.
What is Zuckerberg’s Opinion on the Loss?
Although Meta has suffered losses, the CEO of Meta, Mark Zuckerberg, is not worried about the loss that Meta has incurred. Mark believes that this is only the start of Metaverse and initially, it may experience losses. However, he is confident that in the future, it will generate trillions in revenue.
Canalys, the researcher, also made a strong point that should be considered. It stated that at a time when the world is going through a global recession, it will be very difficult for people to invest in the Metaverse, which they are not even sure about. During such challenging times, many individuals struggle to afford basic necessities for life, such as food, education, and healthcare. Consequently, investing in the Metaverse may become a lower priority for consumers.
