The Web3 VR (metaverse) division of Meta just took another blow after suffering a $2.8-billion loss in the second quarter of this year.
The social media giant disclosed recently that its titular division suffered huge losses this quarter costing an overwhelming $5.77 billion year-to-date (YTD).
$2.8-billion losses in Q2
In its second quarter of 2022 earnings report, the division named Facebook Reality Labs (FRL) generated $452 million in revenue in the period, down 35 percent from last quarter. In 2021, the FRL division posted a shocking annual loss of $10.2 billion. It is obviously on track to exceed that figure this year.
On his Facebook page, Meta founder and CEO Mark Zuckerberg said their metaverse initiative is “obviously a very expensive undertaking,” adding that as the platform is getting more and more vital in every people’s lives. “I’m confident we’re going to be glad that we played an important role in building this.”
The metaverse is an immersive, future version of the internet that is accessed by digital avatars. Zuckerberg predicts will become the center of business, work, entertainment, and social interaction.
Renaming to Meta
When Zuckerberg renamed Facebook to Meta last fall, he reoriented the entire company’s ethos towards dominating the metaverse.
With an emphasis on developing the hardware, software, and content essential to Meta’s foray into the metaverse, FRL stands apart from Facebook, Instagram, Messenger, and Whatsapp.
To $28.8 billion, the company’s total sales increased this quarter by just over 3 percent. Despite this, the company’s stock dropped by about 4% in after-hours trading to $163.81 at the time of writing following the release of the Q2 results report.
Currently, Meta includes NFT support for Instagram and will be adding Facebook NFTs in the future as well. The communities in all platforms share mixed reactions towards Meta’s road forward using blockchain technology.