TechFlow news, October 31 — According to Financial News, Meta's latest financial report shows that its Reality Labs division, responsible for developing augmented and virtual reality technologies, recorded an operating loss of $4.43 billion in the third quarter, slightly better than analysts' expectations of $4.68 billion. The division generated revenue of $270 million in Q3, a 29% year-on-year increase but below the market expectation of $310.4 million. Revenue for Reality Labs primarily comes from sales of Quest VR headsets and Ray-Ban Meta smart glasses.
Since acquiring VR startup Oculus for $2 billion in 2014, U.S. tech giant Meta has continued to invest heavily in its metaverse initiatives. CEO Mark Zuckerberg believes VR and AR technologies will become the next primary computing platform, but this vision has come at a significant cost—Reality Labs has incurred cumulative losses exceeding $58 billion since 2020.
