The Virtual Reality (VR) division at Meta (formerly Facebook) has recently posted an incredible operating loss, as reported within the company’s financial results for the calendar year of 2023.
As reported on GamesIndustry.biz, Meta’s AR/VR division Reality Labs saw a loss of US $13.7 billion in 2023 – an even greater loss than 2023, where the division had a practical lack of US $10.2 billion. Its total revenue for 2023 was US $2.1 billion.
Reality Labs accounts for Meta’s research and product development in both VR and AR (Augmented Reality), including its focus on headsets such as the Meta Quest (formerly Oculus Quest), along with the much-maligned Horizon World metaverse project (that is reportedly struggling).
While Meta Quest VR headsets are generally held in high regard, the company has long suffered from ridicule for its persistence in developing a VR metaverse world. The common criticisms usually stem from how primitive the platform looks, especially from those engaged heavily in the video game industry, and especially when considering the sheer amount of resources poured into it.
There’s also the proven fact that the idea of a persistent VR metaverse is not something the majority of people want to build relationships – again, the recording game industry has already attempted these kinds of cultural shifts, with much better products, but still didn't find mass adoption.
Meta launched a new form of its VR headset during the tail end of 2023, the Meta Quest Pro. It’s a sophisticated form of the company’s now-flagship Quest VR Headset line, geared towards business users, also it retails for US $1,500. The organization can also be currently at work on the Meta Quest 3, the third iteration of its consumer-grade headset.
During 2023, id Software co-founder John Carmack (Wolfenstein 3D, Doom, Quake) also left Meta’s Reality Labs, after joining as Chief Technology Officer in 2023. He's been vocal about his frustrations.
The wider company, which includes social media networks and platforms like Facebook, Instagram, and WhatsApp, still saw revenue of US $116 billion in 2023, however, down 1% from the previous year. The company’s share prices increased as a result of this financial report.
