It looks like Meta's investment in VR isn't panning out well - the division's lost $24 billion over the last two years 😬
, but even assuming it’s not true, it’s easy to understand why so many people are sceptical about the VR market.
The PlayStation VR was an excellent headset but since you need a PlayStation 4 to use it, it never made much of an impact overall. Instead, the Meta Quest headset and its follow-up has become the most successful, allowing Meta to grab 85% of the worldwide VR market. You’d think that would put Meta in a very comfortable position, especially after they gave the world the meaningless buzzword Metaverse, but their latest financial results show the true cost of that success.
The company’s AR and VR division had an operating loss of $13.7 billion in 2022, with net income falling by 41% – no doubt as a result of the current financial situation across the world, where spending hundreds on a VR headset suddenly seems like more of a luxury than usual. That means that over the last two years they’ve lost roughly $24 billion trying to make VR a mainstream reality and while the Quest has been a success it’s clear that losing that sort of money, year in and year out, is not sustainable even for a company the size of Meta.
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