Reality Labs, the unit of virtual reality (VR) and metaverse owned by Meta Platform Inc recorded losses for 7 quarters in a row but Chief Executive Officer (CEO) Mark Zuckerberg is still far-sighted.
Reality Labs' report shows revenue of $11.1 billion and a margin of 29% in Q2 2022, the lowest in 7 quarters from 2021.
Even so, Zuckerberg remains optimistic about Reality Labs' prospects, saying that the unit will continue to experience a series of losses until its VR applications and Metaverse platform truly matures.
He explained that Metaverse brings a huge opportunity and he believes that with time it will bring returns if not billions maybe trillions of dollars.
In general, Reality Labs is responsible for building VR and AR applications, namely Quest headsets that Meta will use to connect users in the metaverse.
In the meantime, like Meta Platform's previous corporate report, Zuckerberg outlined the issue of macroeconomic challenges in calculating losses.
He also introduced the action of raising interest rates by the Federal Reserve (Fed) which saw an increase of 75 basis points.
In the meantime, Meta is said to be facing a string of court suits from charges of monopolizing the metaverse market through its rebranding.
Complaints surfaced saying that Meta's actions hinder innovation and 'competitive competition' among companies that want to build Metaverse platforms and applications.
