Meta will devote 20% of costs towards improving the Metaverse
Reality Labs incurred $10 billion losses for the corporation in 2022
This year, Meta will allocate one fifth of its budget towards the development of the Metaverse. The company has announced that a significant portion of its expenses will be directed towards Reality Labs, which is working on the company’s metaverse initiatives. However this decision has also prompted some criticism from various sources.
Meta Platforms Inc. has seen a significant decline, with a nearly 65% decrease. The costly investment in the Metaverse made by Meta CEO Mark Zuckerberg has faced much scrutiny as the company has simultaneously cut other expenses, including layoffs.
In contrast to Reality Labs’ $9.4 billion loss from operations in the first three quarters of 2022, Meta’s suite of apps brought in a profit of approximately $32 billion.
The CEO acknowledges that the global economic struggles and difficulties facing Meta’s main operations have led to scepticism about the company’s investments. However, he emphasised that solely focusing on short-term goals and reducing investments in future technologies can have detrimental effects.
He stated that investing 20% in forward-thinking technologies is a reasonable proportion for a company that is determined to maintain its position at the forefront of the highly competitive and dynamic tech industry.
