At an investor conference, Mark Zuckerberg revealed the huge amounts Facebook is spending on developing the Metaverse.
The quarterly call with investors took place yesterday, as Facebook management discusses the latest quarterly numbers.
Despite recent revelations from Facebook and Apple’s apps privacy measures, Facebook is doing a great job. 3.6 billion people use social network services regularly and in the third quarter of 2021 alone the company continued $29 billion b- An increase of 35 percent compared to the previous year.
That’s less than what Facebook could achieve without the current problems, but more than investors expected. The stock market reaction was positive.
Oculus Quest 2 sales return to previous levels
Things are also looking good for Facebook in terms of other sales, i.e. income outside of the advertising business. Although these represent only a small percentage of total sales, they reveal how Facebook’s hardware business, which currently consists mainly of Oculus Quest 2 (test) sales, is evolving.
Other revenue increased to $734 million from $497 million in the second quarter of 2021, an increase of 48 percent. That revenue was according to CFO Dave Weiner Powered by “Quest 2 Strong Sales”.. At the end of August, the company launched a new base model of virtual reality glasses with 128 GB of memory.
After a weak summer and concerns about demand, interest in the device appears to be rising again and returning to the level of the first quarter of 2021. Ray-Ban Stories (info) glasses are also said to have “off a good start”.
Facebook is already lowering expectations for the next quarter. Wehner assumes a decrease in sales compared to the previous year. The reason: Facebook doesn’t expect to get past the “powerful Quest 2 launch” last year.
Zuckerberg formulates ambitious Metaverse goal
Zuckerberg announced that the company will advance again in the coming years Young people between the ages of 18 and 29 rather than older demographics. “It will take years, not months, to make this transformation, and I think it’s the right approach to building our business over the long term,” Zuckerberg said. Young people are the future of Facebook. The focus group change is also a reaction to TikTok’s aggressive expansion.
The CEO of Facebook did not announce a new name for his company as expected. That shouldn’t happen until Thursday on Facebook Connect. Instead, Zuckerberg set a specific, specific goal for the first time:
“Our goal is to help the Metaverse do just that, in this decade billion people Hundreds of billions of dollars are made in digital commerce,” Zuckerberg says.
As early as 2017, the founders of Facebook announced that 1 billion people would join Virtual Reality You want to fetch, but without naming the target date. According to Zuckerberg, Facebook won’t be able to build the Metaverse, which he sees as the successor to the mobile internet, on its own. Thus, the goal of Facebook has shifted the brand of the pure VR platform to the Metaverse covering all platforms and companies.
Facebook wants to disclose investments
Facebook doesn’t just want to make tech glasses, it wants to create an entire ecosystem. “We are simultaneously developing and building multiple generations of virtual and augmented reality products, a new operating system and development model, a digital trading platform, content studios, and of course a social platform,” Zuckerberg says.
Because the implementation of these ambitious goals with Huge cost Related, Facebook wants to make investments in this area transparently as of the next quarter.
In addition to the individual Facebook apps, the revenue and expenses of Facebook Reality Labs, the division that develops VR and AR technologies, are also listed. This should show how the hardware, software, and content are performing.
Annual costs in the eleven dollar range
In this context, Zuckerberg revealed for the first time how much Facebook spends on research and development: according to this, the bill for 2021 alone amounts to Ten billion dollars.
There is still no end in sight. “I expect these investments to continue to grow over the next few years,” Zuckerberg added. Facebook Reality Labs already has 10,000 employees and plans to add another 10,000 professionals in Europe over the next five years.
Zuckerberg expects Facebook In the next year to three years It will provide the building blocks for the Metaverse and will continue to lose significantly during that time. “This is not an investment that will be profitable for us anytime soon,” Zuckerberg says. Only later in the decade did the Metaverse become a “real business story”.
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