Mark Zuckerberg, the CEO of Meta, remains optimistic about the company’s metaverse plans despite the significant financial investment required. During a remote interview at the Nov. 30 DealBook Summit, Zuckerberg addressed concerns about the viability of Meta’s metaverse play and emphasized the importance of persevering through doubts.
Meta’s latest earnings report, released on Oct. 26, revealed the largest-ever quarterly loss in its metaverse-building arm, Reality Labs, dating back to the fourth quarter of 2020. The company has spent $9.44 billion on virtual reality in 2022, approaching the $10 billion losses incurred in 2021.
Despite the substantial costs, Zuckerberg remains unfazed, referring to the metaverse as the “next computing platform.” He reiterated this belief during the DealBook Summit, acknowledging the investments required but expressing confidence in Meta’s long-term vision.
However, the company has had to make some difficult decisions to support its metaverse plans. On Nov. 9, Meta laid off 11,000 employees and made significant investments in hardware. Zuckerberg admitted that the company had anticipated a different business landscape based on positive indicators during the COVID-19 pandemic in 2021, but the reality turned out differently.
While Meta seems focused on metaverse development, Zuckerberg clarified that 80% of the company’s investments are still directed towards its flagship social media platforms and will continue to be for the foreseeable future. Investments in Reality Labs currently account for less than 20% of the company’s overall investments, with Zuckerberg stating that this will remain the case until the metaverse gains more prominence.
Within the investments made in Reality Labs, 40% is allocated to virtual reality (VR) headsets, while the rest goes towards developing “normal-looking glasses” capable of projecting holograms into the real world, which Zuckerberg considers the most important long-term form factor.
During the interview, Zuckerberg also criticized Apple for its strict App Store policies, which have placed restrictions on crypto exchanges and NFT marketplaces. He highlighted the more open and flexible nature of other computing platforms like Windows and Android, which allow for third-party app markets and sideloading. He expressed Meta’s commitment to enabling sideloading with its current VR units and upcoming augmented reality (AR) units, and hoped that future metaverse platforms would adopt a similar approach, avoiding the concentration of control in a single company’s hands.