Meta CEO Mark Zuckerberg remains hopeful about the company’s metaverse plans, despite the billions of dollars he is sucking out of the company, stating that “someone has to build it”.
Appearing remotely for an interview at the DealBook Summit on November 30 in New York, Zuckerberg was asked for his opinion on whether the tech giant’s metaverse move was still viable given its cost and questions hanging over the platform, and answered:
“I think things look very different on a 10-year time horizon than they do in the zone we are in for the next few years. […] I remain completely optimistic about all the things that we have been optimistic about.”
He added that part of “seeing things in the long term” was “overcoming” doubts about his ambitions.
Meta’s latest earnings, released on October 26, revealed the biggest quarterly loss for its metaverse-building division, Reality Labs, dating back to the fourth quarter of 2020. Zuckerberg’s virtual reality has cost $9.44 billion in 2022, approaching the more than $10 billion in losses recorded in 2021.
On the earnings call at the time, Zuckerberg was unfazed by the cost, calling his metaverse the “next computing platform.” In DealBook he doubled down on this statement:
“We are not going to be here in the 2030s communicating and using computing devices that are exactly the same as what we have today, and someone has to build it, invest in it, and believe in it.”
Nevertheless, Zuckerberg admitted that the plans have come at a cost; Meta had to lay off 11,000 employees on November 9 and the CEO said he had “planned massive investments” including in hardware to support his metaverse.
Said the company “thought the economy and business were going in a certain direction” based on positive indicators related to e-commerce business during the height of the COVID-19 pandemic in 2021. “Obviously it hasn’t turned out that way. Zuckerberg added:
“Our kind of operational focus in the next few years is going to be efficiency, discipline, rigor and kind of operating in a much tighter environment.”
Despite Meta’s apparent focus on building his metaverse, Zuckerberg said that 80% of the company’s investments are channeled into its flagship social media platforms, and that they will continue to do so “for quite some time.”
Investments in Reality Labs are “less than 20%,” at least “until the metaverse becomes something bigger,” he said.
Of the 20% invested in Reality Labs, Zuckerberg said 40% goes into his virtual reality (VR) headsets, with the other “half or more” building what he considers “the most important form factor in the long run.” term […] Normal looking glasses that can project holograms into the world.”
Zuck goes against Apple
Zuckerberg also criticized his tech colleague Apple over its restrictive App Store policies, who have placed restrictions on crypto exchanges and non-fungible token (NFT) markets, saying:
“I think Apple has stood out as the only company that is trying to unilaterally control what apps get on a device, and I don’t think that’s a sustainable or good place to be.”
He pointed to other computing platforms like Windows and Android, which are not as restrictive and even allow other app markets and sideloading, that is, the use of third-party software or applications.
He added that Meta has committed to allowing sideloading with its existing VR units and upcoming AR units, and hopes that future Metaverse platforms will be open to this as well.
“I think it’s problematic for a company to be able to control what kinds of app experiences make it to devices.”
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