Meta continues to invest billions in virtual reality technology as market declines
Published: 13:25 19 Dec 2023 EST
Meta Platforms Inc (NASDAQ:FB) continues to invest heavily in developing its virtual reality (VR) technology as the market continues to contract, according to a report from CNBC.
Data shown to the media outlet by research firm Circana shows US sales of VR headsets and augmented reality glasses have fallen 40% in 2023.
This was up from a just 1.1% decline in 2022 when U.S. sales of these devices slipped 2% to $1.1 billion.
Against this backdrop, Meta continues to invest billions of dollars every quarter in developing VR and AR technologies.
The company’s Reality Labs segment posted a $3.7 billion loss for the third quarter on revenue of $210 million and has lost about $25 billion in total since the tech giant was renamed by CEO Mark Zuckerberg in early 2022 to reflect his metaverse ambitions.
Other companies investing in their own VR technologies are Sony Group Corp (NYSE:SONY) and Apple Inc (NASDAQ:AAPL), but from across their portfolios, there remains no breakout app or product which has gained widespread popularity.
Meta declined a request from CNBC to comment on Circana’s data but directed the publication to a recent blog post by Reality Labs’ chief technology officer Andrew Bosworth.
In the December 18 post, Bosworth describes AI and the metaverse as Meta’s “biggest long-term bets on the future.”
“The progress made in 2023 means generative AI is making its way into the heart of the world’s most popular apps, mixed reality is now at the core of a mass-market headset, and smart glasses will let AI see the world from our perspective for the first time,” Bosworth wrote.
“We believe one of the most powerful manifestations of cutting edge AI will be assistants like Meta AI that can understand the world around you and help you throughout your day, eventually without needing to be prompted.”
Meta shares traded up 1.6% at about US$350 on Tuesday afternoon.
