Facebook Is Spending At Least $10 Billion This Year On Its Metaverse Division
Last week, Facebook announced plans to hire 10,000 workers in the European Union to help build "the metaverse," a futuristic notion for connecting online that uses augmented and virtual reality. We now know how much the company plans to spend on this venture, as revealed in the company's third-quarter earnings release. According to The Verge, "Facebook plans to spend at least $10 billion this year on Facebook Reality Labs, its metaverse division tasked with creating AR and VR hardware, software, and content." From the report: "We are committed to bringing this long-term vision to life and we expect to increase our investments for the next several years," the company writes in its third-quarter earnings release this afternoon. Facebook sees AR and VR as being core to "the next generation of online social experiences." The division, which already makes the Oculus Quest headset and Portal lineup of calling devices, is clearly being positioned as the next big thing inside of Facebook. For one, CEO Mark Zuckerberg has been talking about the metaverse nonstop for the past several months. And today, Facebook said it's going to begin reporting earnings specifically for its Reality Labs segment, while Facebook's main ads business -- a staggering $28 billion this last quarter alone -- will be reported under another bucket. It's a sign to investors that the Reality Labs business matters and should be judged separately from how they value Facebook today. It's also a move to, perhaps, distract from what else is going on in Facebook's earnings today. The company missed revenue expectations by around $1 billion (this is not a lot, exactly, at Facebook's scale), which speaks to some of the company's struggles right now. Facebook blames a number of factors for this: COVID-19, the economy, and Apple's recent ad-tracking changes -- something we saw last week when Snap reported earnings, too.
from Slashdot https://ift.tt/3pCI2Hb
Read more of this story at Slashdot.
from Slashdot https://ift.tt/3pCI2Hb
0 Response to "Facebook Is Spending At Least $10 Billion This Year On Its Metaverse Division"
Post a Comment