Meta has launched its quarterly monetary outcomes, giving perception into its latest resolution to extend the worth of its Meta Quest 2 headset.
Actuality Labs, the division of Meta which works on its digital actuality and metaverse merchandise, posted a internet $2.8bn loss over the past three months.
Income throughout this era noticed a 48 p.c enhance to $452m, which CFO Dave Wehner attributed to gross sales of Meta Quest 2 throughout Meta’s earnings name with traders, however this was closely outweighed by the prices and investments Meta is placing into Actuality Labs.
Within the earnings name, the newly introduced worth hike of Meta Quest 2 models was seemingly confirmed to have been put in motion in an try and mitigate losses of Actuality Labs by Wehner.
“Price of income decreased 4 p.c, as development in core infrastructure investments and content-related prices had been greater than offset by a discount in Actuality Labs loss reserves on account of the introduced worth enhance of Quest 2.”
Wehner knowledgeable traders that Meta expects Actuality Labs to make a fair larger loss over the subsequent three months as a consequence of plans to extend funding in digital actuality and the metaverse.
In Meta’s follow-up name with traders, Wehner repeatedly reiterated Meta’s dedication to Actuality Labs.
“That is clearly an space that’s on our precedence record. And so, we do plan on persevering with to spend money on Actuality Labs… And by way of our expense development from 2021 to 2022, the majority -the largest part of the expense development is Household of Apps, however we do suppose that Actuality Labs will proceed to be an funding space for us.”
Meta beforehand cited rising manufacturing and delivery prices because the issue behind the £100 / $100 worth enhance for Quest 2 but it surely feels like this can do little to offset the losses predicted as the corporate continues to spend money on the metaverse.