Metaverse will lose ‘significant’ money in the short term: Mark Zuckerberg
According to CEO Mark Zuckerberg, Meta’s metaverse move will result in a “substantial” loss in the short run. During a shareholders’ meeting on 26 May, he went on to say that this will be profitable in the long run. For the time being, however, the company’s income growth will come from its Instagram Reels.
According to the exec, the metaverse strategy might result in losses for up to five years, putting pressure on the company’s shares. The price of Meta has dropped dramatically in 2022, down 43.4% year to date. Despite a poor Q1 financial report for 2022, the social media giant remains hopeful about the metaverse.
Meta is ramping up its metaverse efforts by launching a slew of new initiatives. It is also interested in hardware gadgets which will play an important part in the metaverse because consumers will be able to experience it through virtual reality. In April 2022, it opened its first hardware store to allow people to test hardware.
The company has launched currency for use in its Horizon Worlds VR program, which is one of the most prominent features. Meta has made it quite apparent that it wishes to rule the metaverse. Meta spent $10 billion on designing its metaverse in 2021 alone. It currently has 10,000 employees working on Zuckerberg’s vision and plans to hire an additional 10,000.
According to Meta’s board, many of its products for an “embodied internet,” in which users are immersed in a virtual world. These products, it added, are unlikely to be sustainable for another 10 to 15 years.
While technologies like artificial intelligence (AI) continue to have an impact on CEOs, the metaverse is seen as one of the least interesting areas for top executives. This, according to a recent survey by market research firm
Read more on ambcrypto.com
