Meta is exiting its Portal smart display business and will wind down work on smartwatch projects, reports Reuters citing company executives during an employee townhall meeting on Friday. The news comes two days after Meta announced about 11,000 job cuts, or 13% of its workforce, "the first mass layoffs in the company's 18-year history."

Last week, Meta announced an AI-powered audio compression method called "EnCodec" that can reportedly compress audio 10 times smaller than the MP3 format at 64kbps with no loss in quality. Meta says this technique could dramatically improve the sound quality of speech on low-bandwidth connections, such as phone calls in areas with spotty service. The technique also works for music. Ars Technica reports: Meta debuted the technology on October 25 in a paper titled "High Fidelity Neural Audio Compression," authored by Meta AI researchers Alexandre Defossez, Jade Copet, Gabriel Synnaeve, and Yossi Adi. Meta also summarized the research on its blog devoted to EnCodec.

Meta describes its method as a three-part system trained to compress audio to a desired target size. First, the encoder transforms uncompressed data into a lower frame rate "latent space" representation. The "quantizer" then compresses the representation to the target size while keeping track of the most important information that will later be used to rebuild the original signal. (This compressed signal is what gets sent through a network or saved to disk.) Finally, the decoder turns the compressed data back into audio in real time using a neural network on a single CPU.

Meta's use of discriminators proves key to creating a method for compressing the audio as much as possible without losing key elements of a signal that make it distinctive and recognizable: "The key to lossy compression is to identify changes that will not be perceivable by humans, as perfect reconstruction is impossible at low bit rates. To do so, we use discriminators to improve the perceptual quality of the generated samples. This creates a cat-and-mouse game where the discriminator's job is to differentiate between real samples and reconstructed samples. The compression model attempts to generate samples to fool the discriminators by pushing the reconstructed samples to be more perceptually similar to the original samples."

The social networking company, which is trying to shift into the so-called metaverse, posted falling sales and said it was "making significant changes" to operate more efficiently. The New York Times reports: This year, Meta's earnings have been hit hard by its spending on the metaverse and its slowing growth in social networking and digital advertising. In July, the Silicon Valley company posted its first sales decline as a public company. Its stock has plunged more than 60 percent this year. On Wednesday, Meta continued that trajectory and indicated that the decline would not end anytime soon. It said it would be "making significant changes across the board to operate more efficiently," including by shrinking some teams and by hiring only in its areas of highest priority.

The company reported a 4 percent drop in revenue for its third quarter -- to $27.7 billion, down from $29 billion a year earlier. Net income was $4.4 billion, down 52 percent from a year earlier. Spending soared by 19 percent from a year earlier. The company's metaverse investments remained troubled. Meta said its Reality Labs division, which is responsible for the virtual reality and augmented reality efforts that are central to the metaverse, had lost $3.7 billion compared with $2.6 billion a year earlier. It said operating losses for the division would grow "significantly" next year. For the current quarter, Meta forecast revenue of between $30 billion and $32.5 billion, which would be down from a year ago. The company's shares fell more than 11 percent in after-hours trading. In a statement, Mr. Zuckerberg, Meta's founder and chief executive, acknowledged "near-term challenges on revenue." But he added that "the fundamentals are there for a return to stronger revenue growth" and that he was "approaching 2023 with a focus on prioritization and efficiency."

"Good news, readers: After using nearly every virtual reality headset made in the last seven years, including the latest $1,500 goggles from Mark Zuckerberg's Meta, I've seen the best of what the metaverse could offer," writes the New York Times' Brian Chen. "Yes, the best is already here, and has been for quite some time. It's video games." An anonymous reader shares an excerpt from his report: At Meta's Burlingame office, I strapped on the Quest Pro to see what was new. Meta highlighted three features: the headset's higher-definition picture, which is receiving quadruple the number of pixels of its predecessor, the $400 Quest 2; the array of cameras embedded into the headset, which can now create a real-time rendering of your facial expressions and eye movements; and new motion controllers with improved pressure sensitivity so you can squeeze a virtual object gently or grab it aggressively.

Meta employees and app developers gave me an hourlong tour through software tailored for the headset. I created a digital avatar of my face that mimicked my grins and frowns as I raised a curious brow. I made 3-D drawings and tossed virtual darts. I found the improved graphics and controllers impressive (and my animated avatar a bit creepy), but after I removed the headset and returned to reality-reality, I could only imagine wanting to use these new features to play games. My favorite virtual-reality game, Blaston, which was released in 2020 and involves players shooting one another in a virtual arena, would probably benefit from the improved motion controllers to make trigger squeezes for the different guns more realistic.PokerStars VR, where gamers gather around a virtual card table to play Texas hold 'em, would be more fun if we could pick up tells through each player's facial expressions.

By the end of the demo, I was also doubtful that I would get any work done with this headset. In a promotional video for the product, Meta suggested that the Quest Pro could be a multitasking tool for workers juggling meetings while scrolling through emails and other tasks. But the device's battery lasts only one to two hours, according to Meta. (The headset can still be used while plugged in, but using a computer is less complicated.) This is the reality on which we should base our buying decisions. Not even Meta seems to believe many people will buy the Quest Pro. It said the device's target audience would be early adopters, designers and businesses. If you fall into any of those camps, I recommend a wait-and-see approach to gauge whether useful virtual-reality applications become available for your profession.

The company left a more obvious niche off its target list: hard-core gamers willing to spend lots of money on every piece of new gaming hardware. They are in for a treat. In addition to providing access to high-resolution virtual reality games made for the Quest Pro, the headset will work with hundreds of games already made for the Quest 2. Many of those older Quest 2 titles are quite good. Games that get your heart pumping and make you break a sweat, likeBeat Saber and FitXR, which both involve swinging your arms around to hit objects, are a boon in an era when people need to wear smartwatches to remind them to stand up. None of this -- a first impression that the Quest Pro will be great for playing games and primarily be used for entertainment -- is a bad thing. The fact that we can get visually stunning, immersive gaming in a lightweight, wireless headset means virtual reality has come a long way in less than a decade. For now, that's the only reason to buy one of these.

Earlier this week, Meta revealed the Meta Quest Pro, the company's most premium virtual reality headset to date with a new processor and screen, dramatically redesigned body and controllers, and inward-facing cameras for eye and face tracking. "To celebrate the $1,500 headset, Meta made some fun new additions to its privacy policy, including one titled 'Eye Tracking Privacy Notice,'" reports Gizmodo. "The company says it will use eye-tracking data to 'help Meta personalize your experiences and improve Meta Quest.' The policy doesn't literally say the company will use the data for marketing, but 'personalizing your experience' is typical privacy-policy speak for targeted ads." From the report: Eye tracking data could be used "in order to understand whether people engage with an advertisement or not," said Meta's head of global affair Nick Clegg in an interview with the Financial Times. Whether you're resigned to targeted ads or not, this technology takes data collection to a place we've never seen. The Quest Pro isn't just going to inform Meta about what you say you're interested in, tracking your eyes and face will give the company unprecedented insight about your emotions. "We know that this kind of information can be used to determine what people are feeling, especially emotions like happiness or anxiety," said Ray Walsh, a digital privacy researcher at ProPrivacy. "When you can literally see a person look at an ad for a watch, glance for ten seconds, smile, and ponder whether they can afford it, that's providing more information than ever before."

Meta has already developed a ton of technology for these purposes. The company filed a patent for a system that "adapts media content" based on facial expressions back in January, and it has experimented with harnessing and manipulating people's emotions for more than a decade. In January, it patented a mechanical eyeball. Despite the public's privacy concerns about Meta, it may be hard for people who use the company's products to resist activating the eye-tracking features because of what they will allow your avatar to do.

"If Meta is successful, there's going to be a stigma attached with denying that data," ProPrivacy's Walsh said. "You don't want to be the only one looking like an expressionless zombie in a virtual room full of people smiling and frowning." Of course, eye-tracking data could be used to determine what you're thinking about buying. Maybe you spend a few extra seconds glancing at an expensive digital fedora, and the company sends you a coupon code an hour later. But measuring your emotions opens up a whole new arena for targeted ads. Digital marketing is all about showing you the right ad at the right moment. Walsh says advertisers could build campaigns with content specifically designed for people who seem frustrated, or more cheerful ad for people who are in a good mood.

During Meta Connect today, Microsoft CEO Satya Nadella said the company is partnering with Meta to bring its biggest services -- Teams, Office, Windows, and even Xbox Cloud Gaming -- to Meta's Quest VR headsets. The Verge reports: It's a surprise partnership that will see Microsoft and Meta combine their strengths. Microsoft sees an opportunity to bring Teams and its other productivity experiences to a capable VR headset, and Meta gets a key partner in its grand metaverse plan. [...] The Teams experience the new Quest Pro and Quest 2 headsets will even include Microsoft adapting Meta's avatar system for Teams and Teams getting support within Meta's own Horizon Workrooms. "People will be able to join a Teams meeting directly from Workrooms," Meta CEO Mark Zuckerberg said during the event. "We think that this cross-device, cross-screen experience will be the foundation of the virtual office of the future."

This virtual office of the future won't just be about meetings. Microsoft is bringing Windows 365 to Quest, the company's platform for streaming full versions of Windows to devices. "With Windows 365 coming to Quest, you'll have a new way to securely stream the entire Windows experience, including all the personalized apps, content, and settings to your VR device with the full power of Windows and Windows applications," Nadella said.

Microsoft is also bringing 2D versions of its Office apps to Quest through its Progressive Web Apps (PWA) technology. These won't be full-blown 3D versions of Office designed for VR, but if there's an appetite for VR in the enterprise, then it's easy to imagine Microsoft adapting them in the future. Xbox Cloud Gaming will even make its way to Meta's Quest VR headsets, allowing Xbox Game Pass Ultimate subscribers to stream games. It's not going to be as immersive as a native VR experience for Xbox games, but you'll be able to pick up an Xbox controller and play them on a giant screen projected inside a Quest headset. Earlier today, Meta announced the Meta Quest Pro: a $1,499 virtual reality headset it's been teasing for the past year. They also announced a big addition to their updated higher-detail avatars: legs.

Following another quarter that saw marketers pull back on their ad spending, Meta today announced it's increasing its ad load on Instagram with the launch of two new ad slots. TechCrunch reports: Amid a slew of product updates for advertisers, including a music catalog for advertisers and a new ad format for Facebook Reels, the company said it will now allow advertisers to run ads on the Explore home page and in profile feeds. Meanwhile, though Instagram Reels began rolling out 30-second ads globally last year, followed by Reels ads on Facebook earlier in 2022, the new format now being tested will involve shorter ads on Facebook Reels, specifically.

Called "post-loop" ads, these 4- to 10-second skippable ads and standalone video ads will play after a Reel has ended. When the ad finishes playing, the Reel will then resume and loop again. Like TikTok, many Reels are designed to be watched more than once -- but stuffing an ad at the end could see users instead choosing to scroll to a new video instead of watching the same one again. This is a risky move, as people will also likely consider this a poor user experience.

Meta also said it will test "image carousel" ads in Facebook Reels starting today. These are horizontally scrollable ads that can include anywhere from two to 10 image ads and are shown at the bottom of Facebook Reels content. In addition, the company is introducing new Instagram ad placements as a way to increase the surface for ads as it struggles to monetize its TikTok competitor, Reels. This is being done through the addition of ads on the Explore home page and in the profile feed. [...] Historically, Instagram had only placed ads on Explore within the Explore feed -- that is, when a person taps on a post and scrolls. But now, it's expanding to the Explore home page itself, as it says it sees users spending meaningful time there, Instagram told TechCrunch. This is already rolling out globally.

Meta, the parent company of Facebook and Instagram, was found by a federal jury in Austin, Texas, to have infringed on two patents held by Voxer, a walkie talkie messaging app founded by a former Army Green Beret. The social media giant was ordered to pay nearly $175 million in damages. Military Times reports: Voxer launched the app in 2011, which was named Best Overall App in the First Annual Silicon Valley Business App Awards in 2013. In 2012, Facebook approached Voxer about a potential collaboration that led to Voxer sharing its patents and proprietary information with the company. "When early meetings did not result in an agreement, Facebook identified Voxer as a competitor although Facebook had no live video or voice product at the time," court filings read. "Facebook revoked Voxer's access to key components of the Facebook platform and launched Facebook Live in 2015 followed by Instagram Live in 2016. Both products incorporate Voxer's technologies and infringe its patents."

The Texas jury found that Facebook Live and Instagram Live incorporated two pieces of Voxer's technologies that involve streaming media over networks. Meta countered in court filings that "Facebook has prioritized live video messaging since the launch of Facebook Live and Instagram Live, with one report identifying Facebook Live as Facebook's 'top priority.'" In a statement to TechCrunch, Meta said the social media company will continue to press the issue through the courts. "We believe the evidence at trial demonstrated that Meta did not infringe Voxer's patents," Meta's spokesperson said in the statement. "We intend to seek further relief, including filing an appeal."

An anonymous reader quotes a report from Bloomberg: Meta was sued for allegedly building a secret work-around to safeguards that Apple launched last year to protect iPhone users from having their internet activity tracked. In a proposed class-action complaint filed Wednesday in San Francisco federal court, two Facebook users accused the company of skirting Apple's 2021 privacy rules and violating state and federal laws limiting the unauthorized collection of personal data. A similar complaint was filed in the same court last week. The suits are based on a report by data privacy researcher Felix Krause, who said that Meta's Facebook and Instagram apps for Apple's iOS inject JavaScript code onto websites visited by users. Krause said the code allowed the apps to track "anything you do on any website," including typing passwords.

According to the suits, Meta's collection of user data from the Facebook app helps it circumvent rules instituted by Apple in 2021 requiring all third-party apps to obtain consent from users before tracking their activities, online or off. Meta has said it expected to miss out on $10 billion in ad revenue in 2022 because of Apple's changes. The Facebook app gets around Apple privacy rules by opening web links in an in-app browser, rather than the user's default browser, according to Wednesday's complaint. "This allows Meta to intercept, monitor and record its users' interactions and communications with third parties, providing data to Meta that it aggregates, analyzes, and uses to boost its advertising revenue," according to the suit. A Meta spokesperson said the allegations are "without merit" and the company will defend itself. "We have designed our in-app browser to respect users' privacy choices, including how data may be used for ads," the company said in an emailed statement.

An anonymous reader quotes a report from Bloomberg: Mark Zuckerberg's pivot into the metaverse has cost him dearly in the real world. Even in a rough year for just about every US tech titan, the wealth erased from the chief executive officer of Meta stands out. His fortune has been cut in half and then some, dropping by $71 billion so far this year, the most among the ultra-rich tracked by the Bloomberg Billionaires Index. At $55.9 billion, his net worth ranks 20th among global billionaires, his lowest spot since 2014 and behind three Waltons and two members of the Koch family.

It was less than two years ago when Zuckerberg, 38, was worth $106 billion and among an elite group of global billionaires, with only Jeff Bezos and Bill Gates commanding bigger fortunes. His wealth swelled to a peak of $142 billion in September 2021, when the company's shares reached as high as $382. The following month, Zuckerberg introduced Meta and changed the company's name from Facebook And it's been largely downhill from there as it struggles to find its footing in the tech universe.

Its recent earnings reports have been dismal. It started in February, when the company revealed no growth in monthly Facebook users, triggering a historic collapse in its stock price and slashing Zuckerberg's fortune by $31 billion, among the biggest one-day declines in wealth ever. Other issues include Instagram's bet on Reels -- its answer to TikTok's short-form video platform -- even though it's worth less in advertising revenue, while the industry overall has been affected by lower marketing spending due to concerns over an economic slowdown. The stock is also being dragged down by the company's investments in the metaverse, said Laura Martin, senior internet analyst at Needham & Co. Zuckerberg has said he expects the project will lose "significant" amounts of money in the next three to five years. In the meantime, Meta "has to get these users back from TikTok," said Martin. It's also hampered by "excessive regulatory scrutiny and intervention," she said. Meta is "down about 57% this year, far more than the declines of 14% for Apple, 26% for Amazon and 29% for Google parent Alphabet," adds Bloomberg. "Meta is even narrowing the gap in 2022 losses with Netflix, which is down about 60%."

Meta will now allow users of its Quest VR headsets to log in with a new Meta account instead of a Facebook account, the company announced on Tuesday. The Verge reports: The company had said in July that this change would be rolling out in August, and it marks a shift from an unpopular policy announced in 2020 that required users to log in to their headsets with a Facebook account instead of a separate Oculus account. Users can create Meta accounts through the Meta mobile app using an email address, Facebook account, or Instagram account. Once you create a Meta account, you'll need to set up a linked Meta Horizon social profile that will be used in VR. As with Facebook accounts before, you'll need one of these accounts to use a Quest headset.

"Our new Meta account structure gives you more flexibility and control, letting you choose how you do and don't show up -- and whether Facebook and / or Instagram is part of your experience in VR and other surfaces where you use your Meta Horizon profile," Meta says in its blog post. If you want to set up a Meta account, the company has instructions in the blog post and in a video. If you are still using an Oculus account, you'll be able to do so until January 1st, 2023. After that date, you'll need to make a Meta account. The company says the option to make a Meta account and a Meta Horizon profile is rolling out now, so if you aren't able to just yet, you should be given the option soon.

Meta, the owner of Facebook and Instagram, has been rewriting websites its users visit, letting the company follow them across the web after they click links in its apps, according to new research from an ex-Google engineer. The Guardian reports: The two apps have been taking advantage of the fact that users who click on links are taken to webpages in an "in-app browser," controlled by Facebook or Instagram, rather than sent to the user's web browser of choice, such as Safari or Firefox. "The Instagram app injects their tracking code into every website shown, including when clicking on ads, enabling them [to] monitor all user interactions, like every button and link tapped, text selections, screenshots, as well as any form inputs, like passwords, addresses and credit card numbers," says Felix Krause, a privacy researcher who founded an app development tool acquired by Google in 2017.

Krause discovered the code injection by building a tool that could list all the extra commands added to a website by the browser. For normal browsers, and most apps, the tool detects no changes, but for Facebook and Instagram it finds up to 18 lines of code added by the app. Those lines of code appear to scan for a particular cross-platform tracking kit and, if not installed, instead call the Meta Pixel, a tracking tool that allows the company to follow a user around the web and build an accurate profile of their interests. The company does not disclose to the user that it is rewriting webpages in this way. No such code is added to the in-app browser of WhatsApp, according to Krause's research. [...] It is unclear when Facebook began injecting code to track users after clicking links. "We intentionally developed this code to honor people's [Ask to track] choices on our platforms," a Meta spokesperson told The Guardian in a statement. "The code allows us to aggregate user data before using it for targeted advertising or measurement purposes. We do not add any pixels. Code is injected so that we can aggregate conversion events from pixels."

They added: "For purchases made through the in-app browser, we seek user consent to save payment information for the purposes of autofill."

On Wednesday, Meta announced that the Portal Plus Gen 2 and Portal Go now support Duet Display, an app that can turn a display into a secondary monitor for Macs and PCs. Ars Technica reports: The Portal Plus is the same size as some of the best portable monitors, so it makes sense to repurpose it for that function. Because it's built for video image quality, it has a decent resolution for a portable display -- 2160x1440. Duet Display doesn't require a display to be connected to a computer via a cable, so specific Portals are now portable wireless monitors, too.

At a time when webcams are integrated into many laptops, and USB webcams are easier to find again, many consumers don't need a display dedicated primarily to web calls. But an extra monitor? That's more widely appealing. With the addition of Duet Display, Portal owners have further reason to think about their Portal when they're not on a video call. Meta also gave all Portals with a touchscreen -- namely, the Portal Go, Portal Plus, Portal, and Portal Mini -- a Meta Portal Companion app for macOS. The app enables screen sharing during video calls and provides quick access to video call features, like mute and link sharing in Zoom, Workplace, and BlueJeans.

Meta's AI research labs have created a new state-of-the-art chatbot and are letting members of the public talk to the system in order to collect feedback on its capabilities. The Verge reports: The bot is called BlenderBot 3 and can be accessed on the web. (Though, right now, it seems only residents in the US can do so.) BlenderBot 3 is able to engage in general chitchat, says Meta, but also answer the sort of queries you might ask a digital assistant, "from talking about healthy food recipes to finding child-friendly amenities in the city." The bot is a prototype and built on Meta's previous work with what are known as large language models or LLMS -- powerful but flawed text-generation software of which OpenAI's GPT-3 is the most widely known example.

Like all LLMs, BlenderBot is initially trained on vast datasets of text, which it mines for statistical patterns in order to generate language. Such systems have proved to be extremely flexible and have been put to a range of uses, from generating code for programmers to helping authors write their next bestseller. However, these models also have serious flaws: they regurgitate biases in their training data and often invent answers to users' questions (a big problem if they're going to be useful as digital assistants). This latter issue is something Meta specifically wants to test with BlenderBot. A big feature of the chatbot is that it's capable of searching the internet in order to talk about specific topics. Even more importantly, users can then click on its responses to see where it got its information from. BlenderBot 3, in other words, can cite its sources.

By releasing the chatbot to the general public, Meta wants to collect feedback on the various problems facing large language models. Users who chat with BlenderBot will be able to flag any suspect responses from the system, and Meta says it's worked hard to 'minimize the bots' use of vulgar language, slurs, and culturally insensitive comments." Users will have to opt in to have their data collected, and if so, their conversations and feedback will be stored and later published by Meta to be used by the general AI research community. "We are committed to publicly releasing all the data we collect in the demo in the hopes that we can improve conversational AI," Kurt Shuster, a research engineer at Meta who helped create BlenderBot 3, told The Verge. Further reading: Microsoft's 'Teen Girl' AI Experiment Becomes a 'Neo-Nazi Sex Robot'

Meta publicly released information on 21 billion Facebook friendships as part of a research project looking at economic inequality in the United States, the company announced today. Along with new insights into the intersection of money and friendships in America, the partnership between Meta and the researchers gives us another look at who Facebook is willing to share data with -- and why. The Verge reports: The research team wanted to understand why people in some places in the US were more likely to move between economic brackets than in others. Using the information from Meta, along with other data, a research team built a dataset for a pair of studies on economic mobility, published Monday in the journal Nature. One study found that people who grow up in areas where there are more friendships between high- and low-income people are more likely to move out of poverty and up the economic ladder. "Growing up in a community connected across class lines improves kids' outcomes and gives them a better shot at rising out of poverty," Raj Chetty, a Harvard economist and lead researcher on the study, told The New York Times.

Many places, though, don't allow for much interaction between high- and low-income people, the second of the two studies found. And even when a neighborhood does allow for that kind of interaction, people are still more likely to befriend people in similar economic brackets. [...] [T]he full dataset, which covers 21 billion Facebook friendships, is available through Facebook's Data for Good program. People can search the public-facing website and see the economic connectedness of various communities, including their own. Researchers can download the data for additional studies. [...] The new studies offer valuable insight into economic mobility in the US, and the data could help researchers understand how people in the US build relationships.

Facebook parent company Meta has just reported its earnings for the second quarter of 2022, and it was another quarter of shrinking profits. Engadget reports: Total revenue of $28.8 billion was only down one percent compared to Q2 one year ago, but net income dropped 36 percent to $6.7 billion. Making almost $7 billion in profit is not a bad quarter for anyone, but the size of the decline compared to a year ago is pretty significant. And, according to the Wall Street Journal, this is the first-ever drop in revenue for Meta / Facebook -- so even though we're only talking one percent, it's still noteworthy.

Revenue from advertising and Meta's "family of apps" was essentially flat year-over-year, and Reality Labs (home to hardware like the Meta Quest and other metaverse-related initiatives) actually grew 48 percent year-over-year to $452 million. But Reality Labs accounted for a $2.8 billion loss this quarter, a 15 percent larger loss than Q2 one year ago. At this rate, it seems likely that Reality Labs will lose Meta more than the $10 billion it cost the company in 2021. Indeed, the company said it expects Reality Labs revenue to be lower in the third quarter. [...] In June, Meta said that it had 2.88 billion daily active users in its family of apps (which includes Facebook, Instagram, WhatsApp and Messenger) and 3.65 billion monthly active users, both of which are up four percent compared to a year ago. Facebook-specific growth was smaller, though -- average daily and monthly users only increased three percent and one percent, respectively. Further reading: FTC Files To Block Meta's Virtual Reality Deal

Mark Zuckerberg believes that Apple and his company are in a "very deep, philosophical competition" to build the metaverse, suggesting the two tech giants are ready to butt heads in selling hardware for augmented and virtual reality. The Verge reports: The Meta CEO told employees earlier this month that they were competing with Apple to determine "what direction the internet should go in," according to a recording of his comments during an internal all-hands meeting obtained by The Verge. He said that Meta would position itself as the more open, cheaper alternative to Apple, which is expected to announce its first AR headset as soon as later this year. "This is a competition of philosophies and ideas, where they believe that by doing everything themselves and tightly integrating that they build a better consumer experience," Zuckerberg said of the brooding rivalry. "And we believe that there is a lot to be done in specialization across different companies, and [that] will allow a much larger ecosystem to exist."

Since rebranding Facebook's company name to Meta, Zuckerberg has been pushing for the concept of interoperability for the metaverse, or what he sees as the next major chapter of computing after mobile phones. Meta recently helped stand up the Metaverse Open Standards Group with Microsoft, Epic Games, and others. The idea is to spur the creation of open protocols that will let people easily move through future immersive, 3D worlds with their virtual goods. Apple is absent from the group, which Zuckerberg called out as not surprising in his comments to employees. He explained how Apple's approach of building hardware and software it tightly controls had worked well with the iPhone, but that for the metaverse, "it's not really clear upfront whether an open or closed ecosystem is going to be better."

[...] If VR and AR do take off like Zuckerberg hopes, it seems he wants to position Meta as the Android to Apple's iOS. There is a parallel to draw already: Meta's Quest headset already allows the side loading of apps that are not approved by Meta's VR app store, similar to how Google's Android allows for sideloading. And even though it just increased the price of the Quest by $100, Meta's hardware is still mostly sold at a loss or breakeven. [...] Zuckerberg's remarks suggest that even as he tries to invent his way out of being under Apple's thumb on mobile, the two tech giants are going to be battling for years to come.

An installation-art company called META (or Meta.is) announced Tuesday that it will be suing Meta (or Facebook) for trademark violation, alleging that Zuckerberg's name change violated the smaller company's established brand. The Verge reports: "On October 28, 2021, Facebook seized our META mark and name, which we put our blood, sweat, and tears into building for over twelve years," reads a post on the smaller company's site. "Today, after eight months of trying to negotiate with Facebook in good faith to no avail, we were left with no choice but to file a lawsuit against them."

Much of the case hinges on Facebook's many privacy scandals, which Meta.is argues has made it impossible to share the name. "Meta can no longer provide goods and services under the META mark," the complaint argues, "because consumers are likely to mistakenly believe that Meta's goods and services emanate from Facebook and that Meta is associated with the toxicity that is inextricably linked with Facebook."

Meta.is holds a valid trademark for the name but may still be facing an uphill battle in court, given the broad range of trademark applications Facebook has made since the name change became official -- including separate marks for messaging, social networks, and financial services. There are also a number of trademarks claiming the Meta name for non-tech products, including a hard seltzer and manufacturer of prosthetic limbs.

An anonymous reader quotes a report from Ars Technica: A recent media release from market research firm IDC predicts that Meta (the parent company of Facebook) may not be able to compete in the mixed-reality business in the long run if its strategy remains unchanged. The media release offers a bird's-eye view of the virtual reality hardware marketplace. In the release, IDC research manager Jitesh Ubrani said that, while "Meta continues to pour dollars into developing the metaverse, [the company's] strategy of promoting low-cost hardware at the expense of profitability isn't sustainable in the long run."

A similar concern was raised by tech industry analyst Ming-Chi Kuo late last month. Kuo predicted that Meta would make moves to scale down investment in virtual reality, creating an opening for Apple and other competitors. He also wrote that Meta's practice of selling VR headsets at a loss is unsustainable. Currently, Meta owns 90 percent of the VR headset market, according to the IDC release. In distant second is ByteDance's Pico, at just 4.5 percent. Overall, VR headset shipments jumped 241.6 percent year over year in the first quarter of 2022. But the industry faced significant supply issues in Q1 2021, contributing to "a favorable comparison" for this year's Q1.

Like Kuo a couple of weeks ago, IDC research director Ramon Llamas said that "all eyes will be on Apple as it launches its first headset next year." Apple's headset is expected to be much more expensive than Meta's offerings, driving up the average unit price for the product category across the board, and Llamas believes Apple's offering "will appeal primarily to a small audience of early adopters and Apple fans." In other words, don't expect the first Apple headset to ship vastly more units than Meta's Oculus Quest 2 right out of the gate. It's just a first step in a long-term plan to own the mixed-reality market.

An anonymous reader quotes a report from the Financial Times: Meta is facing a growing backlash for the charges imposed on apps created for its virtual reality headsets, as developers complain about the commercial terms set around futuristic devices that the company hopes will help create a multibillion-dollar consumer market. [...] But several developers told the Financial Times of their frustration that Meta, which is seen as having an early lead in a nascent market, has insisted on a charging model for its VR app store similar to what exists today on smartphones. This is despite Meta chief Mark Zuckerberg being strongly critical in the past of charging policies on existing mobile app stores.

"Don't confuse marketing with reality -- it's good marketing to pick on Apple. But it doesn't mean Meta won't do the exact same thing," said Seth Siegel, global head of AI and cyber security at Infosys Consulting. "There is no impetus for them to be better." The "Quest Store" for Meta's Quest 2, by far the most popular VR headset on the market, takes a 30 percent cut from digital purchases and charges 15-30 percent on subscriptions, similar to the fees charged by Apple and Android. "Undoubtedly there are services provided -- they build amazing hardware and provide store services," said Daniel Sproll, chief executive of Realities.io, an immersive realities start-up behind the VR game Puzzling Places. "But the problem is that it feels like everybody agreed on this 30 percent and that's what we're stuck with. It doesn't feel like there's any competition. The Chinese companies coming out with headsets are the same. Why would they change it?"

Meta defended its policies, pointing out that unlike iPhone owners, Quest users can install apps outside its official store through SideQuest, a third-party app store, or make use of App Lab, its less restricted, more experimental app store. "We want to foster choice and competition in the VR ecosystem," Meta said. "And it's working -- our efforts have produced a material financial return for developers: as we announced earlier this year, over $1 billion has been spent on games and apps in the Meta Quest Store." Developers welcome these alternatives but say their impact is limited. SideQuest has been downloaded just 396,000 times, versus 19 million for the Oculus app, according to Sensor Tower. App Lab, meanwhile, still takes a 30 percent cut of purchases. Developers are also frustrated with Meta's shift to a more restrictive approach to allowing apps on its VR app store.

Chris Pruett, Meta's content ecosystem director, said Meta found that lax standards resulted in too many users being frustrated by low-quality content, so the company has opted to play more of a gatekeeper role. But developers said the resulting barriers could lack transparency.

"Getting something on the Quest store is painful," said Lyron Bentovim, chief executive of the Glimpse Group, an immersive experiences group. "It's significantly worse than getting on Apple or Android stores."