Facebook is now called Meta, The current state is loss. The virtual world sector or Metaverse within the company turned out to be a huge loss of US $ 10 billion last year and is expected to continue to grow.
Reality Labs is a segment of the company tasked with building the company's Metaverse vision. This also includes revenue from hardware such as the Meta Quest virtual reality (VR) headset.
Unfortunately Reality Labs continues to suffer losses for three years from 2019, Below is the current loss data,
- 2019 : net loss of US$4.5 billion on revenues of US$501 million
- Year 2020: net loss of US$6.62 billion on revenues of US$1.14 billion
- 2021: net loss US$10.19 billion in revenue US$2.27 billion .
Reality Labs' losses last year are in line with what Zuckerberg said last year he expected to invest there.
The possibility of loss seems to be increasing. Meta's CFO David Wehner expects operating losses to increase significantly in 2022.
Therefore, the losses experienced in fact hampered the profit that Meta got this year. If it weren't for Reality Labs, the company would have made more than $56 billion in profit over the past year.
But why would Meta want to spend that much money?
Wehner said the $4.2 billion loss was related to employee costs, research and development and the cost of goods sold.
This loss shows Meta excels in building the Metaverse. Unlike other companies that target the virtual world such as Roblox and Epic Games, Meta is more daring not to limit the amount of money spent.
Meta facebook also still has a lot of time to realize the virtual world. It can take company executives up to 15 years to fully realize their vision, and enough time for Meta to switch strategies to find new sources of money.