Meta’s Metaverse Unit Sees A $2.8 Billion Loss in Q2

Social media giant, Meta Platforms, has disclosed that its metaverse division suffered losses of $2.81 billion this quarter.

The quarterly loss puts the division’s year-to-date losses at a whopping $5.77 billion.

The division, Facebook Reality Labs (FRL), is different from Facebook, Instagram, Messenger, and Whatsapp.

FRL focuses on building the hardware, software, and content fundamental to Meta’s push into the metaverse.

In its Q2 2022 earnings report, FRL generated $452 million in revenue in the period, down 35% from last quarter.

Last year, the division posted a annual loss of $10.2 billion.

Despite the alarming loss, Meta CEO Mark Zuckerberg, still believes that the metaverse gamble will pay today.

“As the metaverse becomes more important in every part of how we live… I’m confident that we’re going to be glad we played an important role in building this,” Zuckerberg said.

Though Meta’s multi-billion dollar metaverse play has not yet paid off, Zuckerberg attempted to convince shareholders that it’s a savvy long-term strategy.

“I feel even more strongly now that developing these platforms will unlock hundreds of billions of dollars, if not trillions, over time,” said Zuckerberg.

Meta’s overall revenue improved by just over 3% this quarter, to $28.8 billion.