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 project and emphasized the importance of persisting despite doubts.
Meta’s recent earnings report, released on Oct. 26, revealed the largest-ever quarterly loss in its metaverse-building division, Reality Labs. The company has spent a total of $9.44 billion in 2022 on virtual reality development, nearing the $10 billion losses recorded in 2021.
Despite the high costs, Zuckerberg remains unfazed, referring to the metaverse as the “next computing platform” during the earnings call. He reiterated this belief at the DealBook Summit, stating that Meta is committed to seeing their plans through, even if it requires significant investments and overcoming obstacles.
However, Zuckerberg acknowledged that these plans have come at a price. On Nov. 9, Meta had to lay off 11,000 employees due to the massive investments made, including hardware support for the metaverse. Zuckerberg explained that the company had expected the economy and business to align with positive indicators seen in e-commerce during the peak of the COVID-19 pandemic in 2021. Unfortunately, the actual results did not meet their expectations.
Despite Meta’s focus on building the metaverse, Zuckerberg revealed that 80% of the company’s investments are still directed towards its flagship social media platforms and will continue to be so for the foreseeable future. Investments in Reality Labs currently account for less than 20% of the company’s total investments, but Zuckerberg believes that this will change as the metaverse becomes more prominent.
Within the 20% allocated to Reality Labs, 40% is dedicated to virtual reality (VR) headsets, while the remaining portion is focused on developing “normal-looking glasses” capable of displaying holograms. Zuckerberg considers this form factor to be the most important in the long run.
During the interview, Zuckerberg also criticized Apple for its restrictive App Store policies, which have placed limitations on crypto exchanges and NFT marketplaces. He highlighted the more open nature of platforms like Windows and Android, which allow other app markets and sideloading. Meta is committed to enabling sideloading on its existing VR devices and upcoming augmented reality (AR) units, and Zuckerberg expressed the hope that future metaverse platforms would also adopt a similar approach.
Zuckerberg concluded by stating his concerns about a single company having complete control over app experiences on devices, emphasizing the need for more openness and diversity in the app ecosystem.