It's False To Say Facebook's Metaverse Is A Flop Here's How Things Really Are
Have you ever said that buying the house where you live was a flop or a disaster? Or took that trip that in the end didn’t excite you much, but you wouldn’t define it as crap.
Then you will understand why I give these examples. First of all, I believe that Mark Zuckerberg’s work is something precious and to be looked at with great interest.
It’s true, they presented it as the investment of the millennium. Now it risks becoming a financial hole.
Saying that it will not have long-term prospects are people who are inexperienced in technology, the future, and poor visionaries.
If everyone thought so, Steve Jobs would never have created Apple.
Mark Zuckerberg still believes in the Metaverse, in the virtual expansion of the real world of his big tech Meta (the company that owns the social networks Facebook and Whatsapp).
But we need to be realistic, these are the facts at the moment:
– What weighs heavily is the increase in costs and investments, which have gone from 18.6 billion to 22 billion.
– An increase that helped halve profits (down to $4.4 billion from $9.2 billion in the same quarter in 2021).
– This hole is actually caused by the Metaverse.
The Reality Labs division, responsible for the development of the technology, recorded very high losses, equal to 3.7 billion, which from forecasts would seem to be increasing in the final part of the year.
The reason is simple, at the moment there are still few users who gravitate to the 3D world.
But what uphill bet is obvious and immediately goes your way? It would not be a bet, a visionary entrepreneurial activity.
WHY THE METAVERSE IS NOT WORKING NOW: MARK EXPLAINS IT HIMSELF
The Meta CEO is convinced that the record costs and declining profits are influenced by some:
– “challenging dynamics”, which goes back to the general conditions of the Western economy at the moment, between inflation, the energy crisis, and the aggressive monetary policies of central banks.
– Zuckerberg expressly spoke of “growing competition, advertising losses and growing costs from our long-term investments”, reiterating that “the trends of our products seem better than what emerges from some comments: I am quite confident that we are going in the right direction”.
– What he refers to is the fact that there are several negative comments about the Metaverse business, with various users abandoning the first services made available by Meta.
– For example, Horizon Worlds, the Metaverse’s first product for consumers, does not reach 200,000 monthly active users, compared to the expected 500,000.
META HAS A PLAN B
What we must first reflect on is the CEO of Meta knows very well that the losses recorded so far have not been the cause of a significant slowdown in the company’s revenues: which amounted to 29 billion in the third quarter; a drop of only 4% compared to 2021.
– First, Zuckerberg wants to give a signal, but he will probably do so in the sense of reducing the number of workers in the various teams or some expenditure items.
– Then, based on what Bloomberg says, corporate restructuring would come next year and provide for team mergers, perhaps with an annexed hiring freeze.
– The budgets of most working groups could be reduced, including growing sectors, but the priorities will always remain Reels (the section created to respond to TikTok) and the Metaverse.
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BETTING ON THE METAVERSE IS STILL A WINNING CARD
In my opinion, the fact is that Facebook simply started much too early, burning the times and lifestyles of people who are not yet ready for such a radical change.
We are all still very social and used to the web.
With bulky smartphones in hand, no one thinks of going around wearing augmented reality headsets or glasses.
But even stocks aren’t currently thinking about VR jobs. Yes, some have started meeting in the Metaverse, and others are just getting started.
So while its expansion plans may be revised and the Reality Labs division suffer cuts, Facebook intends to stay true to its vision.
Finally, it should be noted that the trend of virtual reality and the Metaverse will increasingly be the new technological frontiers that we cannot do without. This vision is not yet clear, but this tends to happen before new realities are among us, it has become common among people and users.
Facebook is betting that the Metaverse will continue to be a growing market in the long run. Doing so with the important expansion of its Cloud Computing infrastructure and with ad hoc software solutions for people.
So ultimately, we all want the Metaverse to continue to grow and evolve, and Facebook still has a role to play in that direction.
His plan B is shaky but promising, so we’ll just have to wait and see what comes next.
For now, the company is doing everything it can to keep an interest in the Metaverse alive. Using initiatives such as streaming VR content or through interactive platforms such as Spark AR.
We don’t know how this will end, but it is clearly evident that virtual and augmented reality will become increasingly important in our future. Not only will the Metaverse be immediately unapproachable, but so will many other forms of entertainment based on Virtual and Augmented Reality.
Another aspect concerns the hardware, currently not accessible to all and still being innovated.
But that’s exactly why Facebook is working on headsets and other devices, in order to make VR content more accessible.
A GROWING REAL ESTATE MARKET
Meanwhile, there are those who are pursuing the purchase of land in the Metaverse for astronomical figures such as Roblox, The Sandbox or Somniun, and also Decentraland.
Others are opening real estate agencies to help users in these transactions. In short, there is a market that is moving, and that we hope will have a positive trend.
Comparing land thanks to Nft technology is quite simple and allows you to have a real digital property with the added plus of not having to worry too much about the physical laws governing the real world.
Ultimately, you can be sure that Facebook will continue to focus on virtual reality, the expansion of the Metaverse, and everything that can serve to improve it.
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