The costly and dangerous ambitions of Meta’s metaverse

The division virtual reality of the American giant Half accumulated They losses$ 2.81 billion in the second quarter of 2022. But the US regulator, the FTChe is also worried dominant position risks in the sector of metaverse.

In 2021 Facebook changed its name to Meta. The firm led by Mark Zuckerberg therefore intends to affirm its turn towards metaverse. The giant is injecting billions of dollars to develop its technologies in this emerging market.

to settle down, Half focuses specifically on his virtual reality and augmented reality solutions designed by its Facebook Reality Labs (FRL) division. And the company is not looking at spending with $ 10 billion in cumulative losses in 2021.

Already $ 5.77 billion in losses in 2022 for Meta

In 2022 Meta will maintain a sustained investment rate. Only in the 2nd quarter of the year, FRL published losses of $ 2.81 billion. This is slightly lower than in the previous quarter (2.96 billion).

In the same period, the department only released $ 452 million in revenue, down compared to the first three months of the year (695 million dollars). While Meta’s ambitions are great, its activities VR And AR they contribute only marginally to the quarterly revenue of $ 28.4 billion.

The third quarter of 2022 will also be marked further decline in income. On the occasion of the publication of its results, the American digital giant warned him Reality workshops would once again generate a lower CA.

However, the CEO and founder shows no concern. Mark Zuckerberg warned: the metaverse and its revenues are built mostly in the long run. In the short term, Meta is therefore ready to lose money, a lot.

“The development of these platforms [metaverse] it could unlock hundreds of billions, even trillions, of revenue over time, ”says Mark Zuckerberg in response to analyst questions.

FTC opposes Zuckerberg’s acquisition of Within

With its branch metaverse, the company is thus preparing “the ground for a very successful 2030,” says the CEO. However, this future could be overshadowed by the initiative of the competition authorities.

These, especially in Europe, worry about not seeing a completely dominated emerging market, like that of social networks today. In the United States, that’s what the FTC means to block Meta and the acquisition of the virtual reality company Within.

For the Commission, “Meta could have chosen to try to compete with Within on merit” rather than opting for an acquisition. However, the government considers this technology sector “vital”.

The FTC then asks the courts to oppose this external growth operation of Meta. In response, the company denounces a decision “based on ideology and speculation, not evidence”.

GAFAM also believes that this legal process sends “a worrying message to all those wishing to innovate in the field of virtual reality. [Réalité Virtuelle] However, it is thanks to a series of acquisitions and the inertia of regulators that Facebook has been able to impose its dominance on social networks.

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