Mark Zuckerberg revealed in a company meeting how Meta spend breaks down into individual areas such as VR, AR and Horizon.
Meta invests over $10 billion a year on the Metaverse in hopes that VR and AR will become the next big computing platform and the company will lead it. Mark Zuckerberg thinks that Meta can thus free itself from the grip of Apple and Google and their ecosystems.
Meta spent a total of $10.2 billion in 2021 on Reality Labs, the division that develops VR and AR products. In 2022, it spent $9.4 billion in the first three quarters alone. In 2023, losses would continue to increase significantly, Zuckerberg told investors after announcing the latest quarterly figures. These deposits are not expected to pay off until the end of the decade.
Metaverse spending: where do those dollars go.
Two weeks ago, Meta announced massive layoffs. At a subsequent staff meeting, Zuckerberg appeased Metamates and downplayed Metaverse’s expenses, Reuters reports.
Meta spends 20% of its budget on Reality Labs, according to the report. More than half of these expenses switch to augmented reality. “Over the next few years, the first data glasses will emerge and some “really awesome” AR headsets later in the decade, Zuckerberg said. This is the hardest, but also the most valuable part of Meta’s job, he said.
About 40% go into virtual reality, he said. The remaining 10% goes to social platforms like Meta’s proto-metaverse, Horizon, which continues to generate ridicule and negative headlines.
Meta’s first AR headset will be released in 2026
In October, Meta announced that it refine Reality Labs’ previously extensive research and development for four technology platforms: AR hardware, VR hardware, Horizon and neural interfaces. Under the latter is a futuristic bracelet capable of translating electrical signals from the brain into computer commands. It is expected to become the primary input device for Meta’s AR headset, which is being developed under the codename Project Nazare.
At Meta Connect 2022, Zuckerberg demonstrated how the AR wristband and headset can work together. The commercialization of the AR headset was recently delayed until 2026, likely due to technical issues.
At the operations meeting, chief technology officer Andrew Bosworth said AR headsets need to become more useful than smartphones to attract consumers and achieve a higher call bar. Meta wants to focus on developing AR technology for a wide audiencehe said, calling industrial applications a “niche.”