Mark Zuckerberg: Metaverse strategy might result in losses for up to five years
According to CEO Mark Zuckerberg, Meta’s decision to join the Metaverse will result in “significant” losses in the short term. However, during the shareholder meeting on May 26, he affirmed this will be beneficial in the long run. For now, the company’s revenue growth will come from Instagram Reels.
According to Zuckerberg, the metaverse strategy might result in losses for up to five years, putting pressure on the company’s stock. Meta prices are down significantly in 2022 so far, 43.4% lower than they were at the start of the year. Despite the weak Q1 2022 financial report, the social media giant still has high hopes for this area.
Metaverse effort by Meta
Meta is ramping up its Metaverse efforts by launching a series of new initiatives. They are also interested in the aspect of hardware convenience, which is expected to be an important part of Metaverse because users can experience it through virtual reality. In April 2022, the company opened its first hardware store allowing people to experiment.
Meta also introduces currency for use in the VR Horizon Worlds program, which is one of the standout features. The company has made it clear that it wants to dominate the Metaverse and has spent $10 billion designing the space by 2021 alone. The media giant currently has 10,000 employees working on Zuckerberg’s vision and plans to hire 10,000 more.
According to Meta’s board of directors, there are many products for the “internet embodiment,” in which users immerse themselves in the virtual world. In addition, these products are unlikely to be sustainable for another 10 to 15 years.
Is Metaverse losing its charm?
While technologies like artificial intelligence (AI) continue to impact CEOs, Metaverse is considered one of the least exciting areas for top executives, according to a recent survey. by market research firm Gartner.
About 63% of CEOs say that Metaverse is not important or likely to be the core technology of their business. According to the survey, CEOs see digitalization and cybersecurity as key business goals in the coming quarters, as do labor challenges such as talent retention and even environmental sustainability. school.
According to Gartner, one potential reason is that businesses are now trying to change the way they operate in the wake of the global pandemic.
On the other hand, some business experts believe that Metaverse will be one of the most important technological developments of the next decade.
According to Manoj Kumbhat, CIO of Kimberly-Clark, Metaverse is the technology that will “really challenge us as a brand and organization”.
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