Meta's Reality Labs Has Now Lost Over $60 Billion Since 2020 (cnbc.com) 31
Meta's Reality Labs posted a $4.2 billion operating loss in Q1 2025. According to CNBC, cumulative losses since 2020 now exceed $60 billion. From the report: Meta's Reality Labs unit is responsible for the company's Quest-branded virtual reality headsets and Ray-Ban Meta Smart Glasses. It's the key business unit that anchors CEO Mark Zuckerberg's plans to build a new computing platform involving digital worlds accessible via VR and augmented reality devices. [...]
Wall Street has questioned Meta's big spending on the metaverse, which Zuckerberg has said could take many years to turn into a real business. The company must now also contend with sweeping new tariffs from President Donald Trump and the likely increase in costs that will follow, potentially leading to higher-priced devices. Last week, Meta said that an unspecified number of Reality Labs employees were laid off. Those workers were part of the Oculus Studios unit, which creates VR and AR games and content for Quest VR headsets.
Wall Street has questioned Meta's big spending on the metaverse, which Zuckerberg has said could take many years to turn into a real business. The company must now also contend with sweeping new tariffs from President Donald Trump and the likely increase in costs that will follow, potentially leading to higher-priced devices. Last week, Meta said that an unspecified number of Reality Labs employees were laid off. Those workers were part of the Oculus Studios unit, which creates VR and AR games and content for Quest VR headsets.
In totally unrelated news... (Score:2)
https://tech.slashdot.org/stor... [slashdot.org]
Zuckerberg's Bad Idea vs Wall Street Logic (Score:3)
It's a battle of wits where neither side has the weaponry to compete!
Zuckerberg: "Second Life seems cool. I can do it better, except not at all." Fail.
Wall Street: "Profit now, profit later, profit always. It's the only thing that will ever matter, and humanity's purpose." Fail
Normally I'd just rail at Wall Street's shortsightedness, but in this particular case I can't really say that either side has a lock on something with potential. Wall Street is shortsighted, yes, but Zuckerberg is deluded. It's a classic lose-lose situation.
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Unfortunately the Facebook IPO was structured such that Zuckerberg controls the voting shares. Wall street doesn't get to say anything unless he's issuing bonds.
Oh, they can say anything they want, they just don't have control of the situation. And if there's anything Wall Street can't abide, it's not having control of something.
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It's even simpler than that. (Score:2)
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most money ever spent (Score:4, Funny)
That is the most money ever spent on cartoons without legs.
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They added legs, turns out they got used to run for the exit.
Shouldn't be spent and not lost? (Score:2)
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If you're wall street R&D is pure loss. Sensible people see an investment, wall street is not sensible. In their mind profit should be immediate, guaranteed and monotonically increasing for eternity.
However idiotic I think his social vr bullshit idea was, the hardware technology is worthy and needs more investment. The question his investors should have asked if they were serious, is whether he actually believed in his metaverse shit, or that was just a way to leverage his company for a passion project.
Throwing money is not a success strategy... (Score:2)
You need an idea. One that works. Money cannot substitute for that.
How much before Reality sets in ? (Score:2)
$10b here, $10b there. Soon you're talking real money. (With apologies to Everett Dirkson, https://en.wikiquote.org/wiki/... [wikiquote.org])
It is interesting that Microsoft reported significant revenues from AI will dialing back their investment. But since at least some of that was the force-fed CoPilot price increase for Office365, it's kinda hard to understand how much of that revenue increase was voluntary.
Doesn't seem like a winner (Score:2)
I've had a quest 1 since launch day and it's still pretty serviceable as a VR headset for flight sims and stuff. Even with a shiny new GPU and desktop computer to use it with, I might hop in to VR for like 10 min to check out some new novelty thing.
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I don't know if I'll ever use VR more than that.
Re: Doesn't seem like a winner (Score:2)
People who start companies have one idea (Score:4)
They make billions.
They think they are geniuses, better than normal people.
They try and come up with another, bigger idea.
They fail at that, and either go evil ( Google, HP, Dyson ), go back to their old idea ( Apple, Microsoft ), or slowly fade away ( Palm, Facebook ( with a bit of evil on the way ), TomTom, ).
Musk brought three good ideas to great success ( Zip2, Tesla, Spacex ) and Starlink could probably count as a fourth.
( Ob.: Yes, he was a bit of a prick and has gone mad. Not relevant to my point. )
I just came up with this. There may be valid counter arguments.
Re:People who start companies have one idea (Score:4, Informative)
Are you joking? 478 completed missions with 439 booster landings...Falcon 9 is a massive success.
Re: People who start companies have one idea (Score:2)
USD$60 *BILLION!?* (Score:3)
Sixty billion dollars?
Is there any breakdown of this figure? Even if you paid up front for 100,000 headsets, you might only get to $0.1 billion. Where did all the money go? How many prototypes did they make? Were the optics made out of DeBeers diamonds? Did they use AWS or something?
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On paper the money went one place, in reality it went into Zuck's coffers so he can lie, cheat, bribe, and steal with the best of them. Zuck's an evil bastard. I wouldn't put anything past him.
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The money is used to pay staff... Payroll is by far the biggest expense for most businesses.
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It really shows that our illustrious tech leaders (Score:2)
As soon as any of them have to do anything outside of either the one thing they blundered into or maybe sucking down another juicy government contract they fail and they fail hard. Usually costing small investors a fuck ton of money. Although somehow the big boys never seem to lose a dime.
You know the old saying (Score:2)
Ya gotta spend money to lose money
Haven't seen a reason to buy VR headset yet... (Score:2)
I did the math (Score:2)
Not surprising (Score:2)