According to CEO Mark Zuckerberg, Meta’s Metaverse move will result in “substantial” losses in the short term. At the shareholders’ meeting on May 26, he continued that this would be beneficial in the long run. However, for the foreseeable future, the company’s revenue growth will come from Instagram reels.
According to executives, the Metaverse strategy can cost up to five years and put pressure on a company’s stock. The price of Meta fell dramatically in 2022, down 43.4% year-on-year.Despite being poor First quarter financial report of 2022, Social media giants have hope for the Metaverse.
Meta is working on multiple projects
Meta is stepping up its Metaverse efforts by launching a number of new initiatives. We are also interested in hardware gadgets that play an important role in the Metaverse, as consumers can experience the Metaverse through virtual reality. In April 2022, we opened our first hardware store to allow people to test their hardware.
The company has Launch currency Used in the Horizontal Worlds VR program, which is one of the most prominent features. Meta clearly shows that we want to dominate the Metaverse.Meta Spent 10 billion dollars About designing that metaverse in 2021 alone. We currently have 10,000 employees working on Zuckerberg’s vision and will hire another 10,000.
According to Meta’s board of directors Many of the products for the “embodied Internet” where users are immersed in the virtual world. He added that these products would not be sustainable for another 10 to 15 years.
Has Metaverse lost its appeal?
While technologies such as artificial intelligence (AI) continue to impact CEOs, the Metaverse is considered one of the most interesting areas for executives. This is according to a recent study by market research firm Gartner.
About 63% of CEOs say that the Metaverse isn’t important or unlikely to be a technology that’s important to the business. According to the survey, CEOs see digitization and cybersecurity as key business goals for the coming quarter, as well as labor challenges such as talent retention and environmental sustainability.
According to Gartner, one possible reason is that companies are now trying to change their operations in the aftermath of a pandemic.
Meanwhile, some business experts believe that the Metaverse will be one of the most important technological developments in the next decade.
According to Kimberly-Clark CIO Manoj Kumbhat, Metaverse is a technology that “truely challenges us as a brand and organization.”
Does Zuckerberg need a coherent strategy?
Former and current Facebook employees Told the insider In April, Zuckerberg is only interested in the Metaverse. Alas, they said he lacked a coherent strategy for the projects he sees as the future of the Internet.
Meta believes that VR and AR experiences are the best way to deal with the changing landscapes of social experiences and can seize opportunities. However, as mentioned above, the work is costly. Billions of dollars have been invested in Metaverse, forcing Meta to cut back.