Professional and casual Meta Quest users can expect to see more improvements to their headsets, new content and better executed business-focused apps, and next-generation hardware
Quick read
➨ Meta’s Reality Labs earned around $2.27 billion last year
➨ Mark Zuckerberg committed to further investment in the metaverse in 2022
➨ Another company working on a metaverse project is Engage XR—its results are coming in March
The story
Ever since Facebook announced its plans for the ‘metaverse’ and changed its name to Meta last year, we have been waiting for today’s reporting of its 2021 financial results.
The reasons are twofold: the results promised to break down just how much money Meta is making from virtual reality (VR) and other immersive technologies, and reveal whether the company continues to see them as viable investments.
Today is the first time Meta has split the results of its family of apps, namely Facebook, Whatsapp and Instagram, and Reality Labs, the division that oversees augmented reality (AR) and VR hardware, software and content, providing a clear view of revenue.
We already know that Meta has invested a huge $10 billion in Reality Labs, severely hitting the company’s overall operating profit in 2021. With that much skin in the metaverse game—and right now, that means consumer gaming and business use cases such as training and collaboration—what impact would a poor performance for Reality Labs have on Meta’s desire to go another round?
Well, Reality Labs earned around $2.27 billion last year.
Compared to the revenue earned from its apps, this figure is relative pocket change for Meta. However, it is the clearest indication yet of the potential of VR and AR and its current popularity, particularly when pitted against earnings from previous years.
Meta’s Reality Labs recorded revenues of $1.14 billion and $501 million in 2020 and 2019, indicating a huge increase as the pandemic took hold and lockdowns came into effect around the world.
That doubling of growth continued into 2021, earning Meta $2.27 billion last year and as the company continues to enhance Quest with useful business tools and prepares to release its next-generation headset—not to mention updated avatars.