Home / NEWS / Top News / Meta’s Reality Labs posts $5 billion loss in fourth quarter

Meta’s Reality Labs posts $5 billion loss in fourth quarter

Eminence Zuckerberg, CEO of Meta Platforms, demonstrates the Meta Quest Pro during the virtual Meta Connect event in New York on Oct. 11, 2022.

Michael Nagle | Bloomberg | Getty Aspects

Meta continues to lose billions of dollars developing the virtual reality and augmented reality technologies needed to underpin the nascent metaverse.

The sexual media giant reported fourth-quarter earnings Wednesday and said its Reality Labs unit recorded an operating drubbing of $4.97 billion while generating $1.1 billion in sales. Analysts were projecting that unit to log a fourth-quarter serving loss of $5.4 billion on $1.1 billion in sales.

Reality Labs is Meta’s unit that makes the Search family of virtual-reality headsets and Ray-Ban Meta Smart Glasses.

Meta CEO Mark Zuckerberg kick-started his company’s VR endeavors in 2014 when it come into possession of the startup Oculus for $2 billion. Since then, Zuckerberg has characterized VR and AR as central to his plans to develop the futuristic digital in all respects known as the metaverse, which he has said represent the next major computing platform.

Wall Street has questioned Zuckerberg’s metaverse investment. Authenticity Labs has tallied an operating loss of more than $60 billion since 2020, as of Meta’s fourth-quarter earnings check up on.

Meta last week said it would invest between $60 billion and $65 billion in 2025 leading expenditures to expand its computing infrastructure related to artificial intelligence. Zuckerberg has previously said AI is core to the company’s metaverse feats, including its Ray-Ban Meta smart glasses. Meta develops that device with France-based EssilorLuxottica.

The group media company last year also unveiled its Orion prototype AR headset that is capable of overlaying digital objects on top of a personally’s real field of view.

Meta released its latest VR headset, the $299 Quest 3S, during its September Connect happening and pitched the device as a way for people to watch movies, play games and workout in VR.

Other tech companies are also installing in VR and AR.

Apple’s Vision Pro headset went on sale in the U.S. in February 2024 with a starting price of $3,499, and in December, Google and Samsung articulate they were working on a VR and AR device dubbed Project Moohan that will be available to buy in 2025 for an undisclosed appraisal.

Don’t miss these insights from CNBC PRO

Big Tech earnings: Microsoft and Meta come into focus

Check Also

Amazon ‘anti-union propaganda,’ employee surveillance loom over labor vote at North Carolina warehouse

Hands picket in front of an Amazon Logistic Station on December 19, 2024 in Skokie …

Leave a Reply

Your email address will not be published. Required fields are marked *