During a shareholder meeting, Mark Zuckerberg stated that the business expects to lose a considerable amount of money on the metaverse in the near future. In the interim, it will rely on Instagram Reels to boost income.
According to CEO Mark Zuckerberg, who made a comment during a shareholder meeting, Meta’s metaverse move will result in a “substantial” loss in the short run. Zuckerberg stated that this will be profitable in the long run and that for the time being, the company’s income growth will come from its Instagram Reels.
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 percent year to date. Despite a lackluster Q1 financial report for 2022, the social media behemoth remains hopeful about the metaverse.
Meta is ramping up its metaverse efforts by launching many new initiatives. It is also interested in hardware gadgets, which will play an essential 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 created cash for use in its Horizon Worlds VR program, which is one of the most prominent features. Meta has made it quite apparent that she wishes to rule the metaverse.
Meta’s Metaverse’s Laser-Focused Target
Meta has shifted its focus to the metaverse, with the goal of becoming the premier platform for its virtual experiences. This shift occurs as Facebook struggles to maintain growth, and Instagram faces stiff competition from apps like TikTok.
Meta believes that VR and AR experiences are the greatest way to address the shifting landscape of social experiences and that they can seize the opportunity. However, as previously stated, the work is not without cost – billions have been invested in the metaverse, and Meta has been forced to cut back.
Meta is interested in more than simply the whole metaverse experience. The company is also working on integrating NFT collectibles into Instagram so that users can add them to their profiles. Zuckerberg stated that these NFT functions will be available soon. NFT features will be available on Facebook as well.
Also Read: Mark Zuckerberg: Instagram is Looking to bring NFTs to the Platform in the Short Future
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