cnbc.com
Meta's Metaverse Gamble: $58 Billion in Losses and Waning Public Interest
Meta's 2021 rebranding to focus on the metaverse, involving significant investment in VR and AR technologies like Horizon Worlds, resulted in lower-than-expected user adoption and $58 billion in operating losses since 2020, despite some success in AR.
- What were the immediate impacts and changes resulting from Meta's rebranding and metaverse investment?
- In October 2021, Facebook rebranded as Meta, aiming to expand beyond its social media platform and capitalize on the growing metaverse market. This involved significant investment in virtual reality (VR) technology and the launch of Horizon Worlds, a VR platform.
- What factors contributed to the lower-than-expected user engagement on Horizon Worlds, and what are the broader implications for Meta's metaverse strategy?
- Meta's metaverse push, driven by the success of the video game industry and increased online engagement, faced challenges. Despite initial ambitions of 500,000 monthly active users for Horizon Worlds by the end of 2021, the platform reached only around 200,000 users within a year.
- What are the long-term financial and market risks associated with Meta's continued investment in the metaverse, and what alternative strategies might the company consider?
- Meta's Reality Labs division incurred $58 billion in operating losses since 2020, highlighting the financial risks associated with metaverse development. While the company found some success in augmented reality (AR) through its partnership with Ray-Ban, the overall metaverse initiative has seen decreased public interest, with Google Trends showing a significant decline in searches after 2022.
Cognitive Concepts
Framing Bias
The article frames Meta's metaverse ambitions largely as a financial failure. The headline and opening paragraphs immediately establish a negative tone, focusing on the company's losses and lack of user growth. While this is factually accurate, the overwhelmingly negative framing overshadows other aspects of the story. The use of phrases like "hemorrhaging cash" and "largely disappeared from the public conversation" contributes to this negative bias.
Language Bias
The article uses strong negative language such as "hemorrhaging cash," "false dawns," and "largely disappeared." These terms carry strong negative connotations and contribute to a generally pessimistic tone. More neutral alternatives could include: "substantial losses," "previous setbacks," and "decreased public interest."
Bias by Omission
The article focuses heavily on Meta's financial struggles and user acquisition challenges, but omits discussion of potential benefits or societal impacts of the metaverse beyond e-commerce. The lack of counterarguments to the negative narrative presents an incomplete picture. For example, the positive impacts on virtual collaboration, remote work, or immersive educational experiences are not discussed.
False Dichotomy
The narrative implicitly presents a false dichotomy between Meta's success and the metaverse's viability. It suggests that if Meta fails, the metaverse will fail, neglecting the possibility of other companies or platforms successfully developing the metaverse concept.
Sustainable Development Goals
Meta's investment in virtual and augmented reality technologies, though currently experiencing financial losses, represents innovation and infrastructure development in the digital realm. The development of Horizon Worlds and AR glasses showcases investment in new technologies, even if market adoption hasn't met initial expectations. This aligns with SDG 9, which promotes resilient infrastructure, sustainable industrialization, and fosters innovation.