Meta’s ‘Reality Labs’ Reports a $3.74 Billion Operating Loss in Q3

• Meta’s Reality Labs division lost $3.7 billion in Q3 2022, bringing total metaverse losses since early 2021 to over $21 billion as CEO Mark Zuckerberg pushes forward with his metaverse vision.
• In September, Meta released the Quest 3 VR headset, a technically improved $499 version of the older Quest 2 device that is more affordable than the high-end Quest Pro.
• Meta launched a $7.99 per month VR subscription service in June for Quest headset owners to access new games, competing with Apple’s upcoming $3,499 mixed reality headset.

Meta‘s Reality Labs division, which is developing metaverse technologies, recorded a $3.7 billion operating loss in Q3 2022. This brings total losses since early 2021 to over $21 billion, as CEO Mark Zuckerberg continues his ambitious push into the metaverse.

Meta’s Latest VR Headset

In September, Meta released the Quest 3 VR headset, describing it as 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 less than the high-end Quest Pro.

Meta’s VR Subscription Service

In June, Meta launched a $7.99 per month VR subscription service for Quest headset owners. The service provides access to two new VR games each month. It works with the Quest 2, Quest Pro, and new Quest 3 headsets.

Competition from Apple

Developers say Apple‘s upcoming entry into the VR market with its own headset could push the industry into the mainstream. Apple’s Vision Pro mixed reality headset will cost $3,499 when it debuts next year. In contrast, Meta is positioning its Quest headsets as more affordable VR options.

The Road Ahead

While the metaverse market remains early stage, Meta continues to invest billions quarterly into making its vision a reality. The company faces stiff competition from major players like Apple, but is counting on affordable VR devices like Quest to drive adoption. Time will tell if virtual worlds become the next frontier.