(CTN News) – Meta, the parent company of Facebook, lost $2.81 billion on $452 million in revenue from its virtual reality division, Reality Labs, during the quarter ending in June, as it forecast declining revenue for a second straight quarter.
CEO Mark Zuckerberg and Meta continue to spend heavily to develop virtual reality and augmented reality products and the so-called “metaverse.”
For a company that earned $8.36 billion in operating income on $28.82 billion in total sales during the quarter, it is a substantial but manageable expense.
To compete with Apple, Google, Microsoft, and other companies eying the market, Zuckerberg and other Meta leaders are willing to spend heavily on technologies that might be years out and prototypes that aren’t ready to be released, as well as a substantial staff of technical experts.
Despite the small market size, Meta’s Quest 2 headset is currently the most popular VR headset. It was announced earlier this week that Meta will raise the price from $299 to $399.
Later this year, Meta will release more advanced goggles using front-facing cameras to pass through the real world to the user.
Meta has also invested in VR companies and startups developing core headset technologies.
The FTC, however, sued them on Wednesday to prevent it from buying the maker of the popular VR app Supernatural, suggesting that any future acquisitions would be subject to significant scrutiny.
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