Meta’s Reality Labs loses $3.7 billion in third quarter

  • In the third quarter, Meta’s Reality Labs division lost more than $21 billion since the start of last year.
  • Meta introduced its Quest 3 VR headset in September, a technically superior version of the older Quest 2 device.
  • The Quest 3 starts at $499, which is $200 more than the Quest 2 but $500 cheaper than the higher-end Quest Pro VR headset.

Mark Zuckerberg, CEO of Meta Platforms, shows off the Meta Quest Pro during the virtual Meta Connect event in New York on October 11, 2022.

Michael Nagel | Bloomberg | Good pictures

Meta continues to push the Metaverse into the future. Currently, it is facing continuous losses.

In its third-quarter earnings report on Wednesday, Meta revealed that its Reality Labs unit, which develops Metaverse-related technologies, posted an operating loss of $3.74 billion.

Virtual Reality and Augmented Reality segment revenue fell 26% to $210 million from $285 million a year ago. Analysts were expecting sales of $299.3 million and an operating loss of $3.9 billion, according to the Street Account.

Facebook founder and CEO Mark Zuckerberg changed the company’s name to Meta two years ago, declaring Metaverse to be “the next frontier.”

While Meta is pouring a quarter of a billion dollars into VR and AR to make Zuckerberg’s dream come true, the market remains nascent. Developers attending META’s recent Connect conference for mixed reality told CNBC that Apple’s upcoming entry into the VR market could boost the industry and push it into the mainstream.

Meta introduced its Quest 3 VR headset in September, a technically superior version of the older Quest 2 device. The new product has an improved “passthrough” feature that makes the most of the mixed reality experience.

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The Quest 3 has a starting price of $499, which is $200 more than the Quest 2 but $500 cheaper than the higher-end Quest Pro VR headset.

The company is positioning its Quest headsets as a more affordable way for people to experience VR, compared to Apple’s upcoming Vision Pro mixed reality headset, which will cost $3,499 when it debuts next year.

In June, Meta launched the Meta Quest+ VR subscription service for users who want access to two new games every month. The subscription service costs $7.99 a month and works with Quest 2, Quest Pro and Quest 3 VR headsets.

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