Mark Zuckerberg Promises “More Visually Stunning” Metaverse

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  • Mark Zuckerberg has promised to make “the metaverse more visually stunning”
  • He also predicted that there will be a lot of activities in the metaverse sector this year
  • Zuckerberg’s observations come even as Meta’s metaverse division reported $5 billion in losses in Q4 2024

Meta CEO Mark Zuckerberg has promised to make “the metaverse more visually stunning and inspiring” as we progress into 2025. Zuckerberg disclosed that the number of people using its VR headset, Quest, and metaverse world, Horizon, has increased, adding that the long-term investments that Meta drilled into the space will bear fruit this year. The Meta CEO’s observations come despite the company’s metaverse division, Reality Labs, reporting $5 billion in losses in Q4 2024, indicating that Meta’s metaverse exploration efforts are far from profitable.

Reality Labs Focuses on the Metaverse and Wearables

According to Meta’s Q4 2024 results, Reality Labs’ revenue was slightly above $1 billion with most of it coming from hardware sales. Its operating costs, however, increased by 6% to $6 billion. 

Meta said the losses came from “higher infrastructure costs and employee compensation.” According to Meta CFO Susan Li, Reality Labs spends its money on the metaverse and wearables. The metaverse side includes virtual reality (VR), mixed reality (MR), and social platforms.

Investments in the wearables sector go into augmented reality (AR) and artificial intelligence (AI) glasses. Li disclosed that half of “Reality Labs investment will be across  the wearables initiatives.”

Metaverse Causes Meta $60 Billion in Losses

The Meta CFO noted that she expects Reality Labs to incur more losses in 2025, adding that most of the losses are anticipated to come from its wearables initiatives. Meta’s metaverse exploration efforts have left a $60 billion hole in the company’s financial books since 2020.

Zuckerberg disclosed that Meta will continue investing in AI and targets to reach over one billion people with its personalized AI assistant. The promises and Q4 report come four months after Meta launched a cheaper metaverse headset.

With Meta expecting to incur more losses in its metaverse mission, it’s to be seen whether it’ll cut its investments in the metaverse.

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