Meta’s Reality Labs Lost $13.7 Billion in 2022

The company’s 2022 results has gotten the financial analyst tribe back on board especially as Mark Zuckerberg touted 2023 as the “year of efficiency.” Nevertheless the Meta Reality portion of the company continues to pile up losses, $13.7 billion of them, to be exact, with poor sales for the Quest 2 contributing to a drop in revenues of 17%. Not that it wasn’t an overall positive outcome for the company and a sort of comeback for its boy-wonder king, who is not a boy anymore but a cost-cutting emboldened model of industrial captaincy.

Source: Meta

On the earnings call, the company has said that there is a next generation Quest headset coming at some point this year. Whether that ads up to a major bump in financial performance is doubtful. Zuckerberg has bought himself more basking-in-glory time with Wall Street for now, but everyone is worried about advertiser pullback this year (the main source of Meta moola) and the company is going to be held to its promise of being efficient, ie, not profligate in its expenses. All someone has to do is to point out to me how much of the billions going into Meta Reality is being spent on consumer testing and what are the results.

All we know is that Quest 2 headsets are going to sell at every bigger discounts, and that Quest 3, if it ends up being called that, will have to be a lot more competitive on price to open up the user base. Assuming they have enough compelling content to broaden the audience for it.